Germany’s Munich Re has officially struck a deal to acquire Next Insurance, a U.S.-based digital insurance provider, for $2.6 billion — marking one of the biggest insurtech acquisitions in recent years.
Founded in 2016 and headquartered in Palo Alto, Next Insurance specializes in offering tailored insurance products for small and medium-sized businesses (SMBs). Despite the insurtech sector facing valuation challenges, Next Insurance managed to secure a $2.5 billion valuation during its latest funding round in late 2023, when it raised $265 million.
Backed by notable investors like Group 11, Allstate, Allianz X, Battery Ventures, Capital G, Redpoint Ventures, Nationwide, Amex Ventures, and Ribbit Capital, Next Insurance has raised nearly $1.2 billion since inception, according to Crunchbase data.
Like many fintech startups, Next Insurance saw its valuation drop after peaking at $4 billion in 2021. Still, the company has demonstrated strong performance in 2024, reporting a top line revenue of $548 million and serving over 600,000 customers. Next currently employs around 700 people.
With this acquisition, Munich Re plans to integrate Next Insurance into its Ergo unit, further strengthening its digital insurance portfolio. According to the announcement, Munich Re already owned a significant stake in the company and will now purchase the remaining 71% of shares it doesn’t already control — as reported by Globes.
The deal is expected to close in the third quarter of 2025, pending regulatory approval and other customary conditions.
Investor Group 11 confirmed the deal to TechCrunch, reflecting on its early bet on Next Insurance back in 2017 and continued participation in several funding rounds through 2018, 2019, and 2020.
This acquisition underscores Munich Re’s confidence in the long-term growth potential of the digital insurance sector, especially in the SMB market where demand for flexible, tech-driven coverage continues to rise.
