JDC Group - Adding more client groups

Bancassurance, advisory and service platform JDC Group announced a joint venture with Bain Capital and its main shareholder Great-West Lifeco (GWL) to acquire insurance brokers/agencies in Germany and Austria. This will add a fresh source of revenue growth and extra revenue potential on top of the expected boost to platform revenues from 2023 due to previous large client wins. In this note, we introduce our estimates for 2022–24. Based on 2023e consensus EV/sales and EV/EBITDA multiples and our DCF valuation of €37.90 per share, JDC’s valuation does not seem demanding.