Germany’s Munich Re has signed a definitive agreement to acquire digital insurance company Next Insurance for $2.6 billion, the firms announced on Thursday.
Founded in 2016, Palo Alto-based Next Insurance is focused on providing insurance to small-to-medium-sized businesses. It was last valued at $2.5 billion in late 2023 when it raised $265 million.
Next Insurance’s backers include Group 11, Allstate, Allianz X, Battery Ventures, Capital G, Redpoint Ventures, Nationwide, Amex Ventures, Ribbit Capital, and others. The company has raised nearly $1.2 billion in its lifetime, according to Crunchbase.
Like many fintechs, Next Insurance’s valuation has taken a hit in recent years. The startup was valued at $4 billion in 2021. However, Next says it generated “a top line of $548 million” in 2024, has more than 600,000 customers, and employs roughly 700 people.
With the acquisition, Next Insurance will become part of Munich Re’s Ergo unit. The deal is expected to close in the third quarter of 2025, subject to regulatory approvals and customary conditions.
Investor Group 11 confirmed the acquisition to TechCrunch, noting that it has been an investor in the insurtech since 2017, investing in follow-on rounds in 2018, 2019, and 2020.
Munich Re is purchasing the 71% of Next Insurance shares that it does not already own, according to Globes.
