From 700,000 customers, Alan could be considered a mature company. But the health insurance company, which desires to change into a digital companion of your health, is still growing like a startup.
On Wednesday, the company shared some financial indicators. The most impressive is his highest revenues. In 2024, the company generated EUR 505 million in revenues (about USD 525 at today’s exchange rate).
But Alan’s comparison with a normal technological startup could be difficult because the startup is an insurance company. It offers a health insurance product that enhances the national healthcare system in France, Spain, Belgium and soon Canada.
“The model remains the same: we strive for the claim for press claims, with a membership fee from 12% to 14%,” said co-founder and general director of Alana Jean-Charles Samuelian-Werve at a press conference. In other words, the overwhelming majority of Alan’s revenues could be regarded as insurance premiums, and Alan charged from 12 to 14% reduction of additional services and management fees.
If you must compare Alan with the software company as services, small calculations at the back of stocks could be taken by Alan as a startup from 60 to 70 million EUR annual repetitive revenues (USD 62 million to 73 USD million).
However, the startup – price $ 4.5 billion – is still losing money. In 2024, Alan registered a net lack of EUR 54 million in comparison with EUR 59 million in 2023 ($ 56 million and USD 61 million, respectively).
“We confirm the goal that we announced last year to achieve profitability until 2026.” – said financial director Alana Mihael Albu.
Although the company does not bring profit yet, the excellent news is that its distribution strategy scales well. The Alan team increased only by 8% in 2024, and the sales team is more or less stable.
In France, the company has obtained offers for government employees. In Belgium, he signed a strategic partnership with Belfius, the second largest bank and the insurance company of the country. Belfius is now an investor in Alan and intends to distribute Alan products to its clients.
Disturbing the health insurance market by technique of artificial intelligence
Like last yr, artificial intelligence appears very often during a press conference. Ludovic Bauplé, director of Alan’s revenue, said that the sales team increased its results by about 50% due to the use of artificial intelligence in the sales process.
“We managed to reduce customer service costs operationally. On the product side, we accelerated the production of code and the way we carry out unit tests, “said Samuelian-Werve. “In marketing it is really amazing how much we have accelerated the production of assets and films, reducing costs, while significantly increasing quality and efficiency.”
Then Alan plans to extend total revenues by one other 40% in 2025. Compared to 2024, the company should achieve 1 million end customers at the starting of 2026 and after all there might be more automation, with 40% of customer support demands, which might be served without manual contribution until the end of the yr.
The company also used the Wednesday press conference as an opportunity to announce health insurance offers for retired people in France. According to the company, there are 750,000 latest pensioners each yr in France. So it’s going to help when it involves growth.