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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, now 29 per cent, since 2017.
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 declined to comment. Next Insurance did not immediately respond to a request for comment.
This is a developing story