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Munich Re, the German insurance giant, is acquiring digital insurance provider Next Insurance for $2.6 billion, the companies announced Thursday.
Founded in 2016 and based in Palo Alto, Next Insurance specializes in offering insurance solutions to small and medium-sized businesses. The company was last valued at $2.5 billion in late 2023 after raising $265 million.
Over the years, Next Insurance has secured nearly $1.2 billion in funding from major investors, including Group 11, Allstate, Allianz X, Battery Ventures, Capital G, Redpoint Ventures, Nationwide, Amex Ventures, and Ribbit Capital. However, like many fintechs, its valuation has fluctuated. At its peak in 2021, the company was valued at $4 billion.
Despite market shifts, Next Insurance has continued to grow, reporting $548 million in revenue for 2024. The company serves more than 600,000 customers and employs around 700 people.
With this acquisition, Next Insurance will become part of Munich Re’s Ergo unit. The deal, pending regulatory approval, is expected to close in the third quarter of 2025.
Investor Group 11, one of Next Insurance’s early backers, confirmed the acquisition, highlighting its investment history with the insurtech since 2017. Munich Re, which already owns a stake in Next Insurance, is now purchasing the remaining 71% of shares, as reported by Globes.
