Alan: Rapid Growth of a Health Insurance Startup

Alan's Growth and Financial Performance

Alan, currently serving 700,000 customers, has reached a level of maturity for a company. However, this health insurance provider, aspiring to be a comprehensive digital health companion, continues to expand with the dynamism of a startup.

2024 Revenue and Business Model

The company recently disclosed key financial figures. Notably, its revenue reached €505 million in 2024, which translates to approximately $525 million based on current exchange rates.

Direct comparisons to typical tech startups are complex, given Alan’s core business as an insurance provider. It delivers health insurance solutions designed to integrate with the public healthcare systems of France, Spain, Belgium, and, imminently, Canada.

Alan’s co-founder and CEO, Jean-Charles Samuelian-Werve, explained during a press briefing that the company targets a breakeven ratio for claims relative to premiums. This is coupled with a membership fee structure ranging from 12% to 14%.

Recurring Revenue and Profitability

Consequently, a significant portion of Alan’s revenue is derived from insurance premiums, with the company retaining 12% to 14% for supplementary services and administrative costs.

Approximating Alan’s performance as a software-as-a-service (SaaS) business suggests an annual recurring revenue (ARR) between €60 million and €70 million, equivalent to $62 million to $73 million.

Despite a valuation of $4.5 billion, the company continues to operate at a loss. Alan reported a net loss of €54 million in 2024, a slight improvement from the €59 million loss recorded in 2023 (approximately $56 million and $61 million, respectively).

Alan’s CFO, Mihaela Albu, reaffirmed the company’s commitment to achieving profitability by 2026.

Scaling Distribution and Strategic Partnerships

A positive indicator is the scalability of the company’s distribution channels. Alan’s overall team size increased by only 8% in 2024, and the sales force remains relatively stable.

Key achievements include securing contracts to provide insurance for government employees in France. Furthermore, a strategic partnership was established in Belgium with Belfius, the nation’s second-largest banking and insurance group.

Belfius has become an investor in Alan and will now offer Alan’s products to its extensive customer base.

Revolutionizing Health Insurance Through Artificial Intelligence

As was observed in the previous year, artificial intelligence was a prominent topic during the recent press conference. Ludovic Bauplé, Alan’s CRO, reported a roughly 50% improvement in sales team performance attributable to the integration of AI into their sales methodologies.

Significant operational efficiencies have been realized through reductions in customer service expenditures. Samuelian-Werve highlighted that product development, including code generation and unit testing, has been substantially expedited.

Furthermore, the marketing department has experienced a considerable acceleration in asset and video creation, leading to both cost savings and enhanced quality and effectiveness.

Alan’s strategic objectives include a 40% increase in total revenue for 2025 when compared to 2024 figures. The company anticipates reaching a milestone of 1 million policyholders by the beginning of 2026.

Continued automation is a key priority, with a goal of resolving 40% of customer support inquiries without human intervention by year-end.

During the press conference, Alan also unveiled its new health insurance plans specifically designed for retirees in France. The company estimates that France sees 750,000 new retirees annually, presenting a substantial opportunity for expansion.