Munich Re invests USD 250 million in Next Insurance start-up

7 October 2019 — Cosmin CONCEATU
Munich Re purchased additional shares in Silicon Valley based "Next Insurance", taking its overall holding in the Californian start-up to around 27.5%.

The investment made by Munich Re amounts USD 250 million, Next Insurance's value increasing to slightly above USD 1 billion. This investment deepens Munich Re's partnership with Next Insurance. Digital Partners, a Munich Re business unit, has worked closely with the start-up since 2016, supplying services and assuming risk. Munich Re has also held shares in Next Insurance through its Munich Re Ventures unit for some time.

Next Insurance is a Californian insurtech start-up offering tailored, digital insurance solutions to small and medium-sized enterprises (SMEs) in the US market. Next Insurance was founded in 2016 and received a total of USD 131 million in venture capital funding from multiple well-known industry enterprises - Redpoint Ventures, Nationwide, Munich Re, Markel, American Express Ventures, Ribbit Capital, TLV Partners, SGVC, and Zeev Ventures.

Joachim WENNING, Chairman of the Board of Management, commented on the transaction:

"Next's data- and technology-driven business model offers outstanding growth opportunities, which we will harness together. Next Insurance will benefit from our expertise in primary insurance and reinsurance. This investment emphasises Munich Re's commitment to be the leading provider of digital insurance solutions. It also helps Munich Re expand its footprint in the promising insurance market for small and medium-sized commercial customers in the United States. We are confident that building on our proven collaboration will benefit both Munich Re and Next Insurance."

According to Munich Re, a premium volume of USD 139 billion makes the US insurance market for SMEs very appealing. The transaction is subject to approval by the regulatory authorities.

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