Germany’s Munich Re has reached a definitive settlement to accumulate 100% of NEXT Insurance coverage shares, valuing the enterprise at $2.6bn.
Palo Alto, California-based NEXT Insurance coverage will turn into a part of ERGO, Munich Re’s main insurance coverage enterprise.
The transaction is because of shut within the third quarter of 2025 (Q3 2025), contingent on regulatory approvals and different customary circumstances.
Arrange in 2016, NEXT Insurance coverage is a tech-driven property and casualty insurer, specialising in catering to small enterprise homeowners within the US.
With its know-how stack and digital underwriting platform, NEXT Insurance coverage gives digital insurance coverage protection choices similar to normal legal responsibility and employees’ compensation.
In 2024, NEXT Insurance coverage reported a high line of $548m. The enterprise presently employs roughly 700 individuals and serves greater than 600,000 clients.
ERGO and Munich Re have supported NEXT Insurance coverage since 2017, with ERGO Group holding a 29% stake within the firm.
ERGO anticipates the mixing will contribute “mid-triple-digit” million greenback earnings to web ends in the medium time period.
Ardea Companions and Latham & Watkins had been the lead monetary advisor and authorized advisor to NEXT Insurance coverage, respectively.
Goldman Sachs and J.P. Morgan Securities additionally supplied monetary recommendation to NEXT Insurance coverage.
ERGO and Munich Re secured recommendation from Kirkland & Ellis, Barnea Jaffa Lande & Co., Bain & Firm and Morgan Stanley.
ERGO CEO Markus Rieß stated: “This transaction marks the beginning of a brand new chapter for ERGO. Along with NEXT Insurance coverage, we are going to faucet right into a extremely enticing market abroad, unlocking vital development alternatives whereas additional diversifying our present enterprise portfolio. On the similar time, we are going to work with NEXT Insurance coverage to leverage their cutting-edge know-how and our technical excellence, contributing to our dedication to sustainable, worthwhile development.”
NEXT Insurance coverage CEO Man Goldstein said: “Over the previous few years, we have now remodeled the US small enterprise insurance coverage market by delivering a easy, seamless, tailor-made expertise for enterprise homeowners. This transaction will propel us ahead, permitting us to scale our technology-driven method and empower much more small enterprise homeowners with progressive insurance coverage options. With the power and experience of ERGO and Munich Re and their well-recognised reinsurance know-how, we’re poised to steer the cost in reimagining small enterprise insurance coverage within the USA.”
Munich Re reported a web results of €5.7bn ($6.17bn) in 2024, up 23.4% from €4.5bn in 2023.
