Munich Re See full company profile
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is in the process of acquiring
Next Insurance See full company profile
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at a valuation of $2.6 billion.
As of 2023, ERGO, a wholly-owned subsidiary of Munich Re, had a 25.5% stake in Next Insurance.
Founded in 2016, Next Insurance publicly disclosed over $1.1 billion in funding and it was looking to go public in the past and more recently. In July of last year, Next Insurance hired a director of SEC reporting and technical accounting and in October, it was searching for a head of investor relations.
In 2021, the startup was valued at $4 billion following a $250 million funding round.
Next Insurance US Company, the licensed carrier owned by Next Insurance, released its 2024 results recently. Premiums decreased in 2023 due to a focus on profitability.
Next Insurance also has a program with State National, which reported $310 million in written premiums produced by Next, an increase of 40% compared to 2023.
Today, the company serves more than 600,000 customers and counts around 700 employees.
“This transaction marks the start of a new chapter for ERGO. Together with NEXT Insurance, we will tap into a highly attractive market overseas, unlocking significant growth opportunities while further diversifying our existing business portfolio. At the same time, we will work with NEXT Insurance to leverage their cutting-edge technology and our technical excellence, contributing to our commitment to sustainable, profitable growth.” – ERGO Group CEO Markus Rieß.
“Today marks a significant moment for NEXT Insurance, our customers, agents, and partners alike. Over the past few years, we have transformed the U.S. small business insurance market by delivering a simple, seamless, tailored experience for business owners. This transaction will propel us forward, allowing us to scale our technology-driven approach and empower even more small business owners with innovative insurance solutions. With the strength and expertise of ERGO and Munich Re and their well-recognized re/insurance know-how, we are poised to lead the charge in reimagining small business insurance in the USA.” – Next CEO Guy Goldstein.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.