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Germany’s Munich Re has signed a definitive settlement to amass digital insurance coverage firm Subsequent Insurance coverage for $2.6 billion, the corporations introduced on Thursday.
Based in 2016, Palo Alto-based Subsequent Insurance coverage is targeted on offering insurance coverage to small-to-medium-sized companies. It was final valued at $2.5 billion in late 2023 when it raised $265 million.
Subsequent Insurance coverage’s backers embody Group 11, Allstate, Allianz X, Battery Ventures, Capital G, Redpoint Ventures, Nationwide, Amex Ventures, Ribbit Capital, and others. The corporate has raised practically $1.2 billion in its lifetime, based on Crunchbase.
Like many fintechs, Subsequent Insurance coverage’s valuation has taken a success in recent times. The startup was valued at $4 billion in 2021. Nonetheless, Subsequent says it generated “a prime line of $548 million” in 2024, has greater than 600,000 clients, and employs roughly 700 individuals.
With the acquisition, Subsequent Insurance coverage will grow to be a part of Munich Re’s Ergo unit. The deal is anticipated to shut within the third quarter of 2025, topic to regulatory approvals and customary circumstances.
Investor Group 11 confirmed the acquisition to TechCrunch, noting that it has been an investor within the insurtech since 2017, investing in follow-on rounds in 2018, 2019, and 2020.
Munich Re is buying the 71% of Subsequent Insurance coverage shares that it doesn’t already personal, based on Globes.
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