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Munich Re is near sealing a deal to amass Subsequent Insurance coverage in a transaction that might worth the start-up’s fairness at roughly €2.5bn, individuals conversant in the matter have stated.
The money deal, being undertaken by way of Munich’s Ergo subsidiary, is the most recent of a sequence of strikes in direction of consolidation within the insurance coverage sector. The deal could possibly be introduced imminently, the individuals stated.
The German firm has held a stake within the California-based start-up since 2017, constructing it as much as a present degree of 29 per cent.
The deal will present Munich Re, one of many world’s greatest suppliers of reinsurance with a deeper footprint in direct business insurance coverage.
Subsequent Insurance coverage offers cowl to smaller enterprises, and is backed by a number of enterprise capital companies and insurance coverage corporations. The corporate has raised greater than $1bn since its founding in 2016 and was valued at $2.5bn in 2023, based on information supplier PitchBook.
Munich Re and Subsequent Insurance coverage declined to remark.
It is a growing story
