In May 2017, Kartesia provided a €25 million convertible loan to insurance software group Vet+a. Investment Manager Tomás Neuhaus, who handled the deal alongside Founding Partner Jaime Prieto, describes how the Spanish company leverages technology to serve insurance companies.

Providing optimised claim management services for home insurers

Headquartered in Madrid, Vet+a provides loss-adjustment and claim management services to insurance companies in Spain. The company leverages on its proprietary technological platform to reduce the resolution times and average claim cost of damages occurred in any kind of property. “The software developed in-house gives Vet+a a strong competitive advantage over peers and insurers themselves”, says Tomás. “They are able to reduce the average cost per claim for their customers due to the improvement of processes and the use of technology”. Tomás is also confident that Vet+a will expand its customer base: “They have been serving tier 1 insurance companies for over 20 years with no churn rate at all, thanks to the introduction of innovative services that allow Vet+a to minimise lead times and improve the consumer experience”.

Kartesia was very positive towards this sector since the investment in GT Motive, a leading provider of claim management software for the automotive insurance segment. “After arranging a senior financing to fund the expansion of GT Motive, we came across this opportunity in the home insurance business where we could leverage our previous experience and relationships”, says Kartesia Managing Partner Jaime Prieto, who led the deal with Tomás. The team conducted a comprehensive due diligence process including meetings with 2 of Vet+a’s most important customers. “We wanted to assess what they value in Vet+a’s service proposition, its competitive edge and the quality of the services rendered” adds Tomás.

€25 million to expand and develop new services

With its €25 million investment, Kartesia is fostering the growth of Vet+a through the development of new services, the vertical integration of the value chain, the rollout of the software in other geographies and the professionalization of the management. “Kartesia will support these growth initiatives leveraging on its network, being mainly portfolio companies, investors and other high-level business relationships in the industry”, Jaime concludes.