German Munich signed the final contract for the takeover of the insurance company Next Insurance at $ 2.6 billion, corporations announced on Thursday.
Established in 2016, Next Insurance Palo Alto focuses on providing insurance for small size corporations. Recently, it was priced at $ 2.5 billion at the end of 2023, when he collected $ 265 million.
Then insurance supporters are group 11, Allstate, Allianz X, Battery Ventures, Capital G, Redpoint Ventures, Nationwide, Amex Ventures, Ribbit Capital and others. The company collected almost $ 1.2 billion during its life, According to Crunchbase.
Like many fintechs, the valuation of Next Insurance has been hit in recent years. The startup was priced at $ 4 billion in 2021. However, it then generated the “highest line of $ 548 million” in 2024, has over 600,000 customers and employs about 700 people.
Along with the takeover, the next insurance will change into a part of the Ergo Munich unit. The contract is expected to finish in the third quarter of 2025, subject to regulatory approvals and customary conditions.
Investor’s group 11 confirmed the takeover for TechCrunch, noting that he has been an investor in Insurtech since 2017, investing in the next rounds in 2018, 2019 and 2020.
Munich RE buys 71% of the next insurance shares, which he is not yet owned Globes.