Germany’s Munich Re has signed a definitive settlement to amass digital insurance coverage firm Next Insurance for $2.6 billion, the companies announced on Thursday.
Based in 2016, Palo Alto-based Subsequent Insurance coverage is concentrated on offering insurance coverage to small-to-medium-sized companies. It was final valued at $2.5 billion in late 2023 when it raised $265 million.
Subsequent Insurance coverage’s backers embody Group 11, Allstate, Allianz X, Battery Ventures, Capital G, Redpoint Ventures, Nationwide, Amex Ventures, Ribbit Capital, and others. The corporate has raised practically $1.2 billion in its lifetime, according to Crunchbase.
Like many fintechs, Subsequent Insurance coverage’s valuation has taken successful lately. The startup was valued at $4 billion in 2021. Nevertheless, Subsequent says it generated “a prime line of $548 million” in 2024, has greater than 600,000 clients, and employs roughly 700 folks.
With the acquisition, Subsequent Insurance coverage will turn out to be a part of Munich Re’s Ergo unit. The deal is predicted to shut within the third quarter of 2025, topic to regulatory approvals and customary circumstances.
Investor Group 11 confirmed the acquisition to TechCrunch, noting that it has been an investor within the insurtech since 2017, investing in follow-on rounds in 2018, 2019, and 2020.
Munich Re is buying the 71% of Subsequent Insurance coverage shares that it doesn’t already personal, in response to Globes.
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