Munich Re has announced plans to acquire Next Insurance for $2.6 billion. The deal, which is subject to regulatory approval, is expected to close in the third quarter of this year. Next Insurance will be integrated into Ergo Group AG, Munich Re’s primary insurance business, which has a significant presence in Europe and Asia.
Munich Re headquarters office in Munich, Germany.
Markus Rieß, CEO of Ergo Group, commented on the acquisition, saying, “This transaction marks the start of a new chapter for ERGO. Together with NEXT Insurance, we will tap into a highly attractive market overseas, unlocking significant growth opportunities while further diversifying our existing business portfolio. At the same time, we will work with NEXT Insurance to leverage their cutting-edge technology and our technical excellence, contributing to our commitment to sustainable, profitable growth.”
Next Insurance, founded in 2016, specializes in property and casualty insurance for U.S. small businesses. Ergo Group already holds a 29% stake in Next.
Ardea Partners served as the lead financial advisor, and Latham & Watkins acted as legal advisor for Next Insurance. Goldman Sachs & Co and J.P. Morgan Securities provided financial advice as well. Kirkland & Ellis, Barnea Jaffa Lande & Co, Bain & Company, and Morgan Stanley & Co advised Munich Re and Ergo on the deal.
