Germany’s Munich Re has reached a definitive agreement to acquire the digital insurance company Next Insurance for $2.6 billion, as announced by the two companies on Thursday.
Next Insurance, founded in Palo Alto in 2016, specializes in providing insurance services to small-to-medium-sized businesses. The company was last valued at $2.5 billion in late 2023 after raising $265 million.
The investors backing Next Insurance include Group 11, Allstate, Allianz X, Battery Ventures, Capital G, Redpoint Ventures, Nationwide, Amex Ventures, Ribbit Capital, among others. According to Crunchbase, the company has amassed nearly $1.2 billion in funding over its lifetime.
In recent years, like many fintechs, Next Insurance has experienced a decline in valuation. The startup was valued at $4 billion in 2021. Despite this, the company reported generating a top line of $548 million in 2024, serving over 600,000 customers and employing approximately 700 people.
With this acquisition, Next Insurance is set to become part of Munich Re’s Ergo unit. The transaction is expected to be finalized in the third quarter of 2025, pending regulatory approvals and customary conditions.
Investor Group 11 confirmed the acquisition to TechCrunch, emphasizing that it has been involved with the insurtech since 2017, with additional investments in 2018, 2019, and 2020.
Munich Re is acquiring the 71% of Next Insurance shares it does not already own, as reported by Globes.
