Munich Re is investing US$250 million in the California insurance start-up, Next Insurance.
Upon completion of the transaction, Munich Re will increase its holding in Next Insurance to about 27.5 percent, and Next Insurance's value will increase to slightly above US$1 billion.
Next Insurance offers tailored, digital insurance solutions to small and medium-sized enterprises ("SMEs") in the U.S. market.
In a statement, Joachim Wenning, Munich Re's board chair, said, "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 emphasizes 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."
Munich Re noted that Digital Partners, a Munich Re business unit, "has worked closely with the start-up since 2016, supplying services and assuming risk."
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].