Munich Re is close to sealing a deal to acquire Next Insurance in a transaction that would value the start-up’s equity at roughly €2.5bn, people familiar with the matter have said.
The cash deal, being undertaken via Munich’s Ergo subsidiary, is the latest of a series of moves towards consolidation in the insurance sector. The deal could be announced imminently, the people said.
The German company has held a stake in the California-based start-up since 2017, building it up to a current level of 29 per cent.
The deal will provide Munich Re, one of the world’s biggest providers of reinsurance with a deeper footprint in direct commercial insurance.
Next Insurance provides cover to smaller enterprises, and is backed by several venture capital firms and insurance companies. The company has raised more than $1bn since its founding in 2016 and was valued at $2.5bn in 2023, according to data provider PitchBook.
Munich Re and Next Insurance declined to comment.
This is a developing story
