With a customer base of 700,000, Alan can be seen as an established player in the market. However, this health insurance firm aims to evolve into a digital health companion while still experiencing rapid growth akin to that of a startup.
On Wednesday, the company disclosed several financial indicators, with its revenue being particularly noteworthy. In 2024, Alan achieved revenue of €505 million (approximately $525 based on current exchange rates).
Drawing a comparison between Alan and a typical tech startup can be challenging, as Alan operates as an insurance provider. The firm offers health insurance products that supplement the national healthcare systems in France, Spain, Belgium, and soon, Canada.
The business model remains unchanged: aiming for a breakeven ratio between claims and premiums, with membership fees set between 12% and 14%. Alan’s co-founder and CEO, Jean-Charles Samuelian-Werve, articulately conveyed at a press conference that this means a significant portion of Alan’s income is derived from insurance premiums, with Alan retaining a 12% to 14% revenue share for additional services and management.
If one were to evaluate Alan as a software-as-a-service company, quick calculations suggest its annual recurring revenue stands at €60 to €70 million (approximately $62 to $73 million).
Despite its impressive valuation of $4.5 billion, the startup is still in the red. In 2024, Alan recorded a net loss of €54 million, an improvement from a loss of €59 million in 2023 (around $56 million and $61 million respectively).
We reaffirm our goal of achieving profitability by 2026, stated Alan’s chief financial officer, Mihaela Albu.
While the company has not yet reached profitability, it sees positive signs in its distribution strategy, which is expanding efficiently. Alan’s workforce grew by just 8% in 2024, with the sales team remaining fairly constant.
In France, Alan has secured tenders for government employees. In Belgium, the company entered a strategic partnership with Belfus, the country’s second-largest banking and insurance entity. Belfus is now an investor in Alan and will offer Alan’s products to its customer base.
Transforming the Health Insurance Sector with AI
Artificial intelligence was a key topic during last year’s press conference and remained prevalent this year. Ludovic Bauplé, Alan’s chief revenue officer, shared that the sales team has improved its performance by approximately 50% with the integration of artificial intelligence into the sales pipeline.
Operational efficiencies have resulted in reduced customer service costs. On the product front, the firm accelerated its coding production and enhanced unit testing processes, according to Samuelian-Werve. In marketing, there has been a significant increase in the quality and performance of produced assets and videos, along with cost reductions.
Looking ahead, Alan aspires to boost total revenue by an additional 40% in 2025, compared to 2024. The company aims to reach one million end customers by early 2026. Furthermore, Alan anticipates that by the end of this year, 40% of customer support queries will be processed automatically without manual intervention.
The company leveraged the recent press conference to reveal its health insurance offerings tailored for retirees in France. With an annual increase of 750,000 new retirees in the country, this initiative is expected to significantly impact growth.