Germany’s Munich RE has signed a decisive agreement to acquire digital insurance company Next Insurance for $2.6 billion, the company announced Thursday.
Founded in 2016, Next Insurance, based in Palo Alto, focuses on providing insurance to small and medium-sized businesses. It was last valued at $2.5 billion when it raised $265 million in late 2023.
The following insurance supporters include Group 11, Allstate, Allianz X, Battery Ventures, Capital G, Redpoint Ventures, Nationwide, Amex Ventures, Ribbit Capital and others. According to CrunchBase, the company has raised nearly $1.2 billion in its lifetime.
Like many fintechs, the next insurance rating has been a hit in recent years. The startup was valued at $4 billion in 2021. But next said it produced a “$548 million top line” in 2024, with over 600,000 customers and employing around 700 people.
With the acquisition, the next insurance will be part of Munich RE’s Ergo unit. The transaction is expected to close in the third quarter of 2025 subject to regulatory approval and customary terms.
Investor Group 11 confirmed its acquisition of TechCrunch and noted that it has been an investor at Insurtech since 2017 and has invested in the 2018, 2019 and 2020 follow-on rounds.
According to Groves, Munich RE is buying 71% of its next insurance stock it doesn’t own yet.
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