Alan - 2020 Letter to Shareholders

In October 2020, we published our Q3 2020 letter to shareholders. It is important for us, to be transparent with our investors and the community.

Please find below the email we sent to our investors following the fourth quarter of 2020. We slightly edited it to remove sensitive information.

This blogpost also allows us to make the point with you on the year passed. Have a good reading and feel free to share your feeling with us 😉

Dear Alan friends and investors,

For many people, 2020 has been tough on both personal and business levels. On our side, we’re very proud of the work we have achieved at Alan as we come out of this year stronger than ever.

In this turbulent context, our fundamental approach has remained the same: delight our customers every day and focus on the long term.

We have grown +105% to 138K members which is 99% of our objective. By the end of the year, our Fully Loaded ARR reached €90m.

In 2020 one of our strategic priorities was to successfully penetrate the “very large” segment. And during the course of the year, we successfully signed our first very large companies (5k employees), as well as our first franchise restaurants. All of these successes are very promising first steps for the future.

Our sales & marketing organization has matured by an order of magnitude from one year ago.

We have proven our ability to be very productive on small businesses (c. 100 won deals per FTE on average)

We built a pricing engine and a product builder that allows us to price almost any product in less than 1 minute (compared to c. 1 week for competition). Previously we had 4 products. Now we are able to build an unlimited number of products, virtually and in real time.

We witnessed the first positive impacts of the “cancellation at any time” law (the share of business we signed in Nov/ Dec in 2020 in SMEs was 25% higher than in 2019 and we signed 250 employees in the first week of Jan).

Moving 100% of our members on to our internal systems was a big bet and made a huge difference in terms of experience and scalability. We now reimburse c. 75% of claims within 1 hour. It was 80% within 4 days in January 2020.

The NPS for admins has increased from 73 to 78 (NPS for Hotels, Cafes & Restaurants is at 82).

We have launched features such as the new dashboard, insight platforms, integration with payroll systems, better disability policy management on “work stoppage”, friendlier and email-less onboarding flow, group views, etc.

Unlike many companies, we did not simply adapt to COVID-19, we were proactive. We implemented a lot of innovative solutions to keep our individual and business members both safe and delighted.

We remained their trusted health partner through the crisis by:

Delighting our members has always been our very first priority at Alan. In 2020 we made a huge step towards members’ delight.

We have continued to create an amazing product providing a delightful experience that goes far beyond just being an insurance company. We’ve been focused on always more simplicity, transparency and personalization for members, with features such as: a total revamp of our mobile app with a new homepage, the personalized proactive care reminders in feed, the In-Progress care events tracker, and the new Health Journal with care events that automatically include the information of the health professional visited.

Our low churn rate is further evidence of the delight Alan brings to Admins. On average c. 98% of our customers (companies) renew every year.

Our mission is to become the healthcare super-app that offers personalized access to delightful information, proactive care, care delivery, and post-care whether it is digital or physical. Alan is the first place people turn to for all of their healthcare and wellbeing needs. And we have made a huge step in this direction this year.

We launched medical chat (with our own doctors) answering questions from members and communities, leading to an increased use of service up to 10k members per month (more than x2.5 over the year).

Let’s take the example of parents:

Launched during Q4’20, both Spain and Belgium are showing strong early signs of product market fit with 120 and 370 employees respectively (excluding dependents). It was a major bet, and a really hard one to pull off. We are happy with the traction we are getting, and we learned a lot since the launch 4 months ago that will enable us to accelerate growth during 2021.

An increase in the tempo & velocity of our product organization (+16 product launches in Q4 2020)

In 2021, the main focus of Alan is the growth of our core business (B2B health insurance) in Europe.

Want to know more about it? 🤔 Come and download the app on the Apple Store on exclusivity and be the first ones to test it! 😉

We are at the very beginning of our journey. We want to be the place where every European (and then globally) access their own, personalized, healthcare. Our goal is to be at every step of their interaction with the system and to delight them at each step. The task at hand is big and challenging. We will keep innovating in building new products, iterating on our distribution and business model to reinforce our flywheel.

2021 is a very important step in that journey, and we have never been so confident of our chances to profoundly transform the way people interact with our health & well-being.

Thanks to you all for being part of Alan.

I wish you all the best for 2021,

Jean-Charles Samuelian-Werve, CEO @ Alan