Munich Re, a major German reinsurance company, has reached a definitive agreement to acquire Next Insurance, a digital insurance provider, for $2.6 billion. The announcement was made on Thursday.
Founded in 2016 and based in Palo Alto, California, Next Insurance specializes in providing insurance solutions for small-to-medium-sized businesses (SMBs). The company’s valuation was last assessed in late 2023, when it secured $265 million in funding, putting its value at $2.5 billion.
Next Insurance’s investors include a number of prominent venture capital and insurance firms, such as Group 11, Allstate, Allianz X, Battery Ventures, Capital G, Redpoint Ventures, Nationwide, Amex Ventures, and Ribbit Capital, among others. Crunchbase reports that the company has raised nearly $1.2 billion in total funding throughout its history.
Like many fintech companies, Next Insurance’s valuation has experienced fluctuations in recent years. In 2021, the startup was valued at $4 billion. However, Next Insurance reports significant growth, stating they generated “a top line of $548 million” in 2024. They also boast a customer base exceeding 600,000 individuals and employ approximately 700 people.
This acquisition will integrate Next Insurance into Munich Re’s Ergo unit. Subject to regulatory approvals and standard closing conditions, the deal is expected to be finalized in the third quarter of 2025.
Group 11, an investor in Next Insurance since 2017, confirmed the acquisition to news outlet TechCrunch. The firm also participated in subsequent funding rounds in 2018, 2019, and 2020. According to Globes, Munich Re is acquiring the 71% of Next Insurance shares that it does not already own.
