Next Insurance Acquired by Munich Re for $2.6 Billion

Munich Re to Acquire Next Insurance for $2.6 Billion

A definitive agreement has been reached between Germany’s Munich Re and digital insurance provider Next Insurance for a transaction valued at $2.6 billion, as jointly announced by both companies on Thursday.

Next Insurance Overview

Established in 2016 and headquartered in Palo Alto, California, Next Insurance specializes in delivering insurance solutions tailored for small and medium-sized businesses (SMBs).

The company’s most recent valuation stood at $2.5 billion as of late 2023, following a funding round that secured $265 million in capital.

Investor Base

Next Insurance has attracted investment from a diverse group of firms, including Group 11, Allstate, Allianz X, Battery Ventures, Capital G, Redpoint Ventures, Nationwide, Amex Ventures, and Ribbit Capital.

Throughout its history, the company has secured approximately $1.2 billion in funding, as reported by Crunchbase.

Valuation History and Current Performance

While experiencing a valuation adjustment in recent years – peaking at $4 billion in 2021 – Next Insurance reports a strong financial performance.

In 2024, the company generated a revenue of $548 million and currently serves over 600,000 customers, supported by a workforce of approximately 700 employees.

Integration with Munich Re

Following the completion of the acquisition, Next Insurance will be integrated into Munich Re’s Ergo business unit.

The transaction is anticipated to finalize in the third quarter of 2025, contingent upon securing the necessary regulatory approvals and fulfilling standard closing conditions.

Investor Perspective

Group 11, a long-term investor in Next Insurance since 2017, has confirmed the acquisition to TechCrunch. Their investment included participation in subsequent funding rounds in 2018, 2019, and 2020.

According to Globes, Munich Re is acquiring the 71% of Next Insurance shares that are not currently under its ownership.