California-based digital insurance provider Next Insurance announced Monday, Oct 7, it has secured a $250 million funding round from one of the world’s largest reinsurers, Munich Re.
In a report from PRNewswire, the newly collected funds will be used to develop Next Insurance’s new products and accelerate customer expansion initiatives.
“We have been working with Munich Re since the beginning, and they have been a great partner in helping us grow and develop our business,” said Co-Founder and CEO of Next Insurance, Guy Goldstein. “We launched Next Insurance in order to transform the small business insurance industry and this new investment will continue to help us grow our team, develop our technology, deliver phenomenal service and accelerate customer growth. We are excited about the future of insurance and are proud to be, together with Munich Re, drivers of industry change.”
Founded in 2016, Next Insurance serves as a digital insurance provider to SMEs in the US market. In May 2017, the company has raised $29 million in a Series A funding round led by Munich Re and other investors. In July the following year, it’s Series B funding round scored $83 million. With the latest financing round, the three-year-old insurance company has now raised a total of $381 million and is valued at over $1 billion.
“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,” said Joachim Wenning, Chairman of the Board of Management at Munich Re, in a press release.
“This investment emphasizes 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,” he added.