Alan - 2022 Q1 Letter to Shareholders x Series E

Radical transparency and building in the open are core to what Alan is. We believe this transparency builds trust internally and externally.

It has now been several years since we started sharing our quarterly internal letter to shareholders with our community.

Please find below the email we sent to our investors following the first quarter of 2022. We slightly edited it to remove sensitive information, and added more information about our Series E.

Dear Alan friends and investors,

On February 10th, we celebrated our 6th year anniversary. What a journey it has been so far, and we’re still getting started.

Most people thought we were crazy to start an insurance company to advance healthcare: without crazy bets, you don't get crazy (good) outcomes.

Here is how our bets have been paying off during Q1.

We want all our members and customers in all our markets to see Alan as the one-stop health partner they trust.

We reviewed our strategy to be more focused and are delivering on it. We focused our plan with a robust path to profitability while keeping high growth ambitions:

We shut down Alan Baby to focus our energy on our mental well-being offer, and the team is already leveraging their learnings.

Q1 has been great in terms of growth and margin. The groundwork and preparation that we have laid is yielding positive results.

The performance so far is delivering both on the output metrics and the input metrics that are going to define our future performance.

We are announcing our €183 million series E fundraising at a €2.7bn valuation (Press Release).

The round is led by Teachers’ Venture Growth (TVG), part of the C$242 billion Ontario Teachers’ Pension Plan Board, with participation from existing and new investors including Temasek, Index, Coatue, Ribbit Capital, Exor, Dragoneer, and Lakestar.

We are thrilled and honored by the quality of our partners and the alignment with our long-term vision. We are also very proud to close this round in a volatile market environment, which will allow us to be countercyclical and to keep investing and growing despite difficult macroeconomic conditions.

Since 2016, Alan’s mission has been to make personal, proactive and holistic health part of people’s daily lives, striving to be the world’s most member-centric healthcare company. This fundraising takes us one step closer towards our mission of being the friend in health for all Europeans.

With the new funding we are prioritizing 2022 investments as follows:

By the end of 2025, Alan wants to become the one-stop health partner for 3 million people, hire 1,000 new employees and reach profitability.

During Q1, signed members grew by 15% to reach 274k.

We also started internalizing disability claims management to significantly improve our admins’ experience (faster work stoppage declarations, improved visibility on employees’ claims, fast and reliable payment, more reactive customer service). The first companies having disability claims managed by Alan were onboarded on March 1st.

We added 3.5k signed members, ending Q1 with 13.7k total signed members. This represents 34% member growth since the beginning of the year.

We automated more and more claim handling, which will improve our speed to process claims and the experience for our members.

We added 877 signed members, closing Q1 with 2.7K total. This represents 49% member growth since the beginning of the year.

In parallel, we keep pushing for more product differentiation and we launched the ability to cover ex-employees who leave their company.

We’re on a mission to be the one-stop health partner for the body and the mind, with health services driving member growth, increasing member value, and ultimately reducing the cost of claims.

Satisfaction with our health team (dermatology, physiology, nutrition, sleep) remains high (average customer satisfaction is 4.5/5) and we’re confident that the clinic is a core component of Alan’s health partner experience.

We onboarded our first Alan as a Service customer (Lamie) and are moving forward with other players. We also received a healthy number of inbounds following our announcement launching AaaS.

We released the book "De l'assurance maladie au partenaire bien-être" ("From Reactive Medical Insurance to Well-Being Partner"). It is our way to share our vision of healthcare with the world. It describes what the healthcare system, centered on citizens, that we as Alan are aiming to build.

We are also launching Alan Media. Our editorial pillars are Decoding & News, Mental Health, Inclusive Health, Fertility, Sexuality, and Parenting.

We are working hard to make our product (landing pages, apps, communication) centered around this notion of Alan being the one-stop health partner.

We kept consolidating the leadership within the team, with a lot of internal promotions of Alaners we deeply trust to sustain our growth. We are very happy with this new set-up:

We kept building our team and strengthening our culture. We are now 525 Alaners.

We work from 9 countries and >70 cities and have a very unique culture that bonds us together. It is a real enabler for future growth.

Still, after 2 years of covid, we want to make sure we give a sense of belonging to all Alaners whatever their seniority and we are working hard on this. We want Alan to become the most attractive hiring brand in France for the best talents, if not in Europe.

The future is very exciting and we have only started. Our mission is to make personal, proactive and holistic health part of people’s daily life, striving to be the world’s most member-centric healthcare company.

Thank you for supporting us.

Jean-Charles for the Alan team.