ERGO Group, a part of Munich Re, has completed its acquisition of NEXT Insurance, a move that sees the full integration of the US-based property and casualty insurer into its operations.
NEXT Insurance, established in 2016, specialises in digital insurance solutions tailored for small business owners in the US.
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The company has reported a top line of $548m in 2024 and currently serves over 600,000 customers with a workforce of around 700 employees.
NEXT Insurance’s offerings, which include general liability and workers’ compensation, are delivered through a digital platform.
The acquisition process began with the signing of a definitive agreement in March 2025, which placed the valuation of NEXT Insurance at $2.6bn for the entirety of its shares.
Prior to the transaction, ERGO held a 29% stake in NEXT Insurance.
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By GlobalDataWith the completion of the transaction, which met all required conditions including regulatory approvals, NEXT Insurance becomes an integral part of ERGO’s management structure.
This acquisition marks its entry into the US insurance market, targeting the small and medium-sized business segment.
The transaction is expected to be mutually beneficial, with NEXT Insurance’s proprietary technology stack and its digital, automated underwriting and pricing platform complementing ERGO’s business operations.
Conversely, ERGO’s expertise in insurance is anticipated to support the continued growth of NEXT Insurance.
ERGO Group CEO Markus Rieß said: “Today’s transaction closing represents an important milestone in establishing ourselves as a relevant insurance provider in the USA. Together with NEXT Insurance, we will seize the considerable growth potential offered by this attractive market as we expand our existing business portfolio.
“Through the combination of NEXT Insurance’s technologically driven, successful market approach and ERGO’s insurance expertise, we will deliver profitable growth and added value for all our stakeholders.”
This acquisition follows ERGO Group’s recent consolidation of its travel and health insurance businesses in Denmark and Norway, respectively, into a single entity.
