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Munich Re has announced the acquisition of Next Insurance for $2.6 billion. The transaction is subject to regulatory approval and is expected to be completed in the third quarter of this year.
Next Insurance will join Ergo Group AG, the primary insurance business of Munich Re which has a focus in Europe and Asia.
Markus Rieß, CEO of Ergo Group, said in a statement: "This transaction marks the start of a new chapter for ERGO. Together with NEXT Insurance, we will tap into a highly attractive market overseas, unlocking significant growth opportunities while further diversifying our existing business portfolio. At the same time, we will work with NEXT Insurance to leverage their cutting-edge technology and our technical excellence, contributing to our commitment to sustainable, profitable growth."
Next Insurance was founded in 2016 and is a property and casualty insurer focused on U.S. small business. Ergo Group is currently a shareholder of Next, with 29% of the company's capital.
Ardea Partners acted as lead financial advisor and Latham & Watkins served as legal advisor for Next Insurance. Goldman Sachs & Co and J.P. Morgan Securities acted as financial advisors for Next. Kirkland & Ellis, Barnea Jaffa Lande & Co, Bain & Company and Morgan Stanley & Co acted as advisors to Munich Re and Ergo.
