Reinsurance provider Munich Re supplied $250m in series C funding for US-based online insurance platform Next Insurance yesterday at a valuation of more than $1bn.
The investment increased Munich Re’s stake to approximately 27.5%, though the transaction remains subject to regulatory approval.
Founded in 2016, Next operates an online insurance service that focuses on policies for small businesses. Its coverage areas include general and professional liability, business insurance, commercial auto insurance and worker’s compensation insurance.
The platform generates quotes within five minutes and issues customers with a certificate of insurance in real time. It also allows clients to extend their policy to cover their place of work, for instance allowing a self-employed fitness instructor to cover services they offer in a gym.
The cash will help the company grow its market share in the US, and Munich Re will provide its expertise in insurance and reinsurance.
Next has now raised $381m in equity financing to date. Venture capital firm Zeev Ventures led its $13m seed round in early 2016, investing with TLV Partners and Ribbit Capital.
Munich Re partnered Next Insurance in 2016 to launch a policy aimed at commercial photographers and contributed to the $29m first tranche of its series A round in May 2017 through Munich Re/HSB Ventures unit alongside insurance firms Markel and Nationwide.
American Express Ventures, the corporate venturing arm of payment services firm American Express, added $6m to close the round at $35m the following month.
Munich Re, Nationwide and American Express Ventures returned in July 2018 for an $83m series B round that was led by Redpoint Ventures and also backed by Ribbit Capital, TLV Partners, SGVC and Zeev Ventures.
