Munich Re, the reinsurance company, based in Munich has recently been in the news for its investment of $250 million (€227.5 million) in US startup, Next Insurance.
Basically, Munich Re has purchased additional Next Insurance shares – taking its overall holding in the Californian startup to around 27.5%. Upon completion of the transaction, Next’s value will increase to slightly above US$ 1bn.
This investment deepens Munich Re’s partnership with Next Insurance. Digital Partners, a Munich Re business unit, has worked closely with the startup 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.
Next Insurance is a Californian startup 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.
Joachim Wenning, Chairman of the Board of Management, Munich Re, 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 emphasises 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.
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