Doma and Capitol Investment Corp. V Investor Call

Below is the transcript for the Doma and Capitol Investment Corp. V investor call.

C O R P O R A T E P A R T I C I P A N T S

Mark Ein, Chairman and Chief Executive Officer, Capitol Investment Corp. V
Dyson Dryden, President and Chief Financial Officer, Capitol Investment Corp. V
Max Simkoff, Chief Executive Officer, Doma
Noaman Ahmad, Chief Financial Officer, Doma

Chris Mammone, Investor Relations for Doma

Welcome to the Doma and Capitol Investment Corp. V, or Capitol, investor conference call and webcast. Capitol has filed an investor presentation with the SEC, which is also available at statestitle.com/ and capinvestment.com. Please review the disclaimers included in the investor presentation and refer to that as a guide for today’s call. The presentation will also be helpful to reference in conjunction with management’s commentary. Management will not be fielding any questions on today’s call. Statements we make during this call that are not statements of historical facts constitute forward-looking statements. Forward-looking statements include, but are not limited to, Doma and Capitol’s expectations or predictions of financial and business performance and conditions, competitive and industry outlook and the timing and completion of the transaction. Forward-looking statements are subject to risks, uncertainties and other factors that could cause our actual results to differ from historical results and/or from our forecasts, including those set forth in Capitol’s
Form 8-K filed today. For more information, please refer to the risks, uncertainties and other factors discussed in Capitol’s SEC filings. All cautionary statements that we make during this call are applicable to any forward-looking statements we make whenever they appear. You should carefully consider the risks and uncertainties and other factors discussed in Capitol’s SEC filings. Do not place undue reliance on forward-looking statements as Doma and Capitol are under no obligation and expressly disclaim any responsibility for updating, altering or otherwise revising any forward-looking statements, whether a result of new information, future events or otherwise, except as required by law. And with that, I’ll turn the call over to Mark Ein, Chairman and CEO of Capitol Investment Corp V.

Mark Ein, Chairman and Chief Executive Officer, Capitol Investment Corp. V

Chris, thank you so much. And welcome everyone today to our exciting announcement for Capitol Investment V, and our investment and impending merger with Doma. Joining me today is Max Simkoff, the founder and Chief Executive Officer of Doma and Noaman Ahmad, the Chief Financial Officer of Doma, and my partner and the President and CFO of Capitol, Dyson Dryden.

Many of you know Capitol and our long track record- we have of the longest, best track records in the SPAC
business, having raised our first SPAC in 2007, closed four previous transactions, raised over $1.5 billion in previous IPOs. Interestingly, our first SPAC in 2007, many of you know in 2009, we created Two Harbors, which became of the leading and largest mortgage REITS in the world and was one of the great compounding investments of that era of SPACs. And so, when we raised Capitol V in December, we saw an extraordinary number of really terrific opportunities. And we were introduced to the Doma team, we had connectivity through some of the board members and other people around the company, and after our meeting with the company, we said, “this is the company that we really want to try to do a transaction with.” For those of you who have been and partners with us in the past, you know that our strategy is we try to find a company executing against a profound macro trend, and that is leading in the effort to execute behind that trend. There are very few industries more ripe for disruption than the title business. It’s a huge $23 billion industry that has not seen innovation for a very long time. When we heard Max’s story about what he’s done, his customer

traction, and his future plans, we knew that this was the right transaction for us. It was a fairly highly sought-after situation as Doma is well known in the prop and space and is of the stars of that industry. We feel really fortunate that we were able to come together with Max and his team in a transaction that not only will give the company the capital to fuel its future growth, but also is one that we believe is constructed to provide a terrific entry point for public market to have a fantastic compounding investment over the long term. We underwrote this investment solely for their current focus in the title and escrow business. But what you’re going to hear is that there’s a bigger vision that Max is going after, which is to create an instantaneous, digital, painless closing process that will incorporate a lot bigger parts of the market and even larger TAMs. If all we do is execute on the title and escrow business that they’re going after today, this will be a fantastic investment. As they get into the bigger and bigger opportunity, we think Doma has a chance to be of those great compounding platform businesses that we all hope that we’re a part of. Before I turn it over to Max, I’ll just say that we did have a chance to talk to a bunch of their existing customers. That deepened our conviction about this investment, they are effusive about the products and services that Max and Doma have introduced to them, they’ve embraced them, they’re going to continue to do that. This really is a better, faster way of doing something that’s been done the same way for an extraordinarily long period of time. Max has assembled an incredible team within the company, at the board level, and at the investor group level. And with that, it’s a real pleasure to introduce you to Max Simkoff, the founder of Doma.

Max Simkoff, Chief Executive Officer, Doma

Thanks, Mark, and welcome everybody. Really happy to be here today. I’m just going to start at the top by talking about the key investment highlights that both Mark and I, and the Capitol team, got really excited about together in our partnership. And the first is that at Doma, we are disrupting a very large, extremely antiquated market that is dominated by commoditized products. There’s a select group of legacy incumbents who use heavy manual labor driven back office to fulfill their service offering. And this is not just the $23 billion US residential title and closing market that we operate in today. But you see this across a broader spectrum of what we call homeownership experiences that make up a $318 billion market opportunity, with some pretty obvious and exciting, immediate adjacencies that we’re going to talk about, and which we’re excited to use proceeds from this transaction to get into.

We’ve demonstrated some super strong market traction by using a full stack, Insurtech platform that, at its core, utilizes machine intelligence to remove most of the friction, frustration, and a lot of the expense involved in the traditional way of fulfilling mortgage closings. Our full stack Insurtech platform is now being utilized by category leading mortgage originators, in what we call our Strategic and Enterprise Accounts business unit. And we’re now super excited that for the first time we’ll be able to publicly announce customers like Chase Home Lending, Pennymac, and Homepoint, among other large strategic national mortgage originators. Just that group of existing strategic enterprise accounts using the Doma intelligence platform to instantly and digitally close mortgages represents $500 million of potential annual revenue to us, we’re under 10% penetrated in that customer base, and we are rapidly expanding wallet share month-over-month.

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