NEXT Insurance has officially become part of ERGO Group AG following the completion of its full acquisition by Munich Re.
With the acquisition, ERGO enters the US insurance market, focusing on the small and medium-sized business (SMB) segment. NEXT Insurance brings a proprietary digital platform to the table, featuring automated underwriting and pricing capabilities. ERGO intends to support NEXT’s growth through its technical resources and insurance expertise.
Markus Rieß (pictured above), CEO of ERGO Group AG, said the transaction marks a step in establishing a presence in the US insurance market.
“Together with NEXT Insurance, we will seize the considerable growth potential offered by this attractive market as we expand our existing business portfolio,” Rieß said.
The acquisition is expected to contribute to ERGO’s net results in the mid-triple-digit million-dollar range over the medium term. Munich Re has framed the deal as a strategic fit within its broader effort to expand its primary insurance footprint, particularly in markets with high growth potential.
By incorporating NEXT Insurance into ERGO’s platform, the company said that it aims to integrate technological innovation into its operating model while capturing revenue growth from the US SMB segment.
Founded in 2016 and headquartered in Palo Alto, California, NEXT Insurance focuses on property and casualty coverage tailored to US small business owners. Its offerings include general liability and workers’ compensation coverage.
In 2024, the company generated a top line of $548 million. It serves more than 600,000 customers and employs around 700 people.
Despite top-line growth, NEXT Insurance posted a net loss of approximately $90 million in 2024. The deficit reflects ongoing investment in technology and marketing, as the company works to expand its market share in a competitive space.
The acquisition agreement between Munich Re and NEXT Insurance was signed on March 20. The deal valued 100% of NEXT’s shares at $2.6 billion. Prior to the acquisition, ERGO Group AG already held a 29% stake in the company.
The move also aligns with Munich Re’s "Ambition 2025" strategy, which sets a target of €6 billion in net profit for the group by the end of the year. The strategy includes both organic and inorganic growth across reinsurance and primary insurance operations, with digital innovation and international expansion positioned as key levers.
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