Munich Re Group Expands US Presence with NEXT Insurance Acquisition
Munich Re Group has successfully completed the acquisition of NEXT Insurance, a move that integrates the company into the management framework of ERGO Group AG, its primary insurance division. This strategic acquisition was finalized after meeting all conditions and gaining the necessary regulatory approvals as per schedule. The acquisition was first announced earlier this year.
This acquisition signifies ERGO’s strategic entry into the United States, the globe’s largest insurance market, with a focus on the lucrative US small and medium-sized businesses (SMB) segment. In the US, small businesses make up 99% of all companies and contribute 44% to the gross domestic product (GDP). Despite a total addressable market of $175 billion, an astonishing 75% of these businesses remain underinsured, representing a significant opportunity for growth.
NEXT Insurance, founded in 2016 and headquartered in Palo Alto, California, is a technology-driven Property & Casualty insurer specializing in the US small business sector. The company offers streamlined, digital insurance solutions, including General Liability and Workers’ Compensation coverage. NEXT Insurance’s advanced, proprietary technology platform, which features fully digital, automated underwriting and pricing, will enhance ERGO’s business capabilities.
ERGO will utilize its extensive technical expertise and insurance proficiency to drive the growth of NEXT Insurance. Markus Rieß, CEO of ERGO Group AG, stated: “Today’s transaction closure is a significant milestone in our quest to become a prominent insurance provider in the USA. Together with NEXT Insurance, we aim to harness the substantial growth potential present in this appealing market as we broaden our existing business portfolio.”
Munich Re and NEXT Insurance initially announced the signing of a definitive agreement on March 20, 2025. This agreement valued 100% of NEXT Insurance’s shares at $2.6 billion. Prior to this transaction, ERGO Group AG was already a major shareholder in NEXT Insurance, possessing approximately 29% of its outstanding share capital.
