SMB insurance company Next raises $265 million
Last valued at $4 billion, Next Insurance raised $265 million in funding from Allstate and Allianz X, it said Wednesday.
Why it matters: Insurtech was the most-funded sector within fintech in the third quarter, per FT Partners data. Strategic investors are helping play a role in that.
Driving the news: Next offers insurance to small businesses including auto services, beauty shops and construction firms. It does the underwriting and takes on balance sheet risk.
- As part of the deal, Next can sell to Allstate customers and develop new commercial auto products along with the insurance giant.
- Allianz, meanwhile, has expanded its agreement to reinsure Next's policies, says chief strategy officer Eran Liron.
- Next is not yet profitable.
What they're (not) saying: Valuation. Liron would not say whether the new funding came at a higher valuation than the company's last peak. Calcalist, however, reports that it's at the same price as its 2021 round.
- It raised $250 million then at a $4 billion valuation. FinTLV Ventures and Battery Ventures served as lead investors.
Context: Insurtech's third-quarter funding rose 131% from the same period a year earlier, pulling in $2.7 billion, per FT Partners data.
- Leading that was a group of investors including Nomura, Prudential and Warburg Pincus, who committed $1 billion to Prismic Life Reinsurance. The deal in theory gives the investors stable, longer-lasting returns.
- Openly, which offers tech to insurance agents, also raised $100 million during the quarter.