Munich Re invests US$ 250m in US start-up Next Insurance

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Munich Re increases its stake in Next Insurance by investing an additional US$ 250m in the Californian Start-up. Upon completion of the transaction, Next’s value will increase to slightly above US$ 1bn.

This investment deepens Munich Re’s partnership with Next Insurance. Digital Partners, a Munich Re business unit, has worked closely with the start-up since 2016, supplying services and assuming risk. Munich Re has also held shares in Next Insurance through its Munich Re Ventures unit for some time. With the newly acquired shares, Munich Re now owns around ~27.5% of the company.

Next Insurance is a Californian start-up offering tailored, digital insurance solutions to small and medium-sized enterprises (SMEs) in the US market. A premium volume of US$ 139bn makes the US insurance market for SMEs very appealing.

As always, the transaction is subject to approval by the regulatory authorities.