Munich Re acquires Next Insurance for $2.6 billion

Germany’s Munich Re has reached a definitive agreement to acquire digital insurance company Next Insurance for $2.6 billion.

Next Insurance, founded in 2016 and based in Palo Alto, focuses on providing insurance for small to medium-sized businesses. In late 2023, the company was valued at $2.5 billion after raising $265 million.

The company’s investors include Group 11, Allstate, Allianz X, Battery Ventures, Capital G, Redpoint Ventures, Nationwide, Amex Ventures, Ribbit Capital, and more. To date, Next Insurance has raised nearly $1.2 billion, according to Crunchbase.

Like many fintech companies, Next Insurance’s valuation has dropped in recent years. The startup was valued at $4 billion in 2021. However, it reported a revenue of $548 million in 2024, has over 600,000 customers, and employs around 700 people.

Once the acquisition is completed, Next Insurance will become part of Munich Re’s Ergo division. The deal is expected to close in the third quarter of 2025, pending regulatory approvals and customary conditions.

Munich Re will be acquiring the remaining 71% of Next Insurance shares that it doesn’t already own, as reported by Globes.