“In 2020, we chose to invest in Next Insurance due to a deep belief in the company’s vision, alongside a professional understanding of its unique business model and impressive technological capabilities. Since then, we’ve been proud partners in the company’s extraordinary journey — becoming one of the world’s leading insurtech firms with a strong business model, significantly higher underwriting profitability than industry standards, and breakthrough technology,” said Gil Arazi, Founder & Managing Partner at FinTLV Ventures, regarding the acquisition agreement signed between Munich Re and Next Insurance on March 19, 2025.
Arazi added, “The deal with Munich Re is further proof of the solid foundations on which Next was built and the impressive execution of its growth strategy. The decision to keep the company independent even after the acquisition underscores the trust in its future and gives it a powerful infrastructure for further growth and impact in the small business insurance sector. We thank Guy, Nissim, Alon, and the entire Next team for the long-standing partnership, mutual trust, and the incredible journey we’ve shared.”
Next Insurance stated that upon completion of the deal, the company will become part of ERGO Group, Munich Re’s primary insurance arm. Under the agreement, the deal is valued at $2.6 billion for 100% of Next’s shares, with the exit entirely in cash. The transaction is subject to regulatory approvals and is expected to close in Q3 2025.
Next Insurance was founded in 2016 by Guy Goldstein, who serves as CEO, Nissim Tapiro, and Alon Huri. Since its inception, the company has raised over $1.1 billion, with key early investors including TLV Partners and Oren Zeev, who continued to participate in subsequent rounds. Other major investors include Munich Re, Capital G, Battery Ventures, FinTLV, and Group 11.
Next is a technology-driven insurance company headquartered in Palo Alto, California, with an R&D center in Kfar Saba, Israel. It focuses on the unique needs of small business owners across the U.S. Using its advanced technology infrastructure and digital underwriting and pricing platform, the company offers accessible, tailored insurance products — including General Liability and Worker’s Compensation coverage.
Since its founding, the company has demonstrated significant growth, generating $548 million in revenue in 2024. It now serves over 600,000 customers and employs approximately 700 people, including around 200 in its Israeli offices.
ERGO Group and Munich Re have closely supported Next since 2017, with ERGO currently holding about 29% of Next Insurance’s equity.
Guy Goldstein, CEO of Next Insurance, remarked:
“Today marks a significant milestone for our company, our customers, agents, and partners. Over the past few years, we’ve reshaped the U.S. small business insurance market by creating an easy, efficient, and personalized insurance experience. This deal will propel us forward, expand our technological reach, and help more small business owners with innovative insurance solutions. With the strength and expertise of ERGO and Munich Re, and their extensive insurance knowledge, we will continue leading the small business insurance revolution in the U.S.”
Markus Rieß, CEO of ERGO Group, added:
“This deal represents a new chapter for ERGO. Together with Next Insurance, we will enter a promising international market and expand our operations while further diversifying our business portfolio. At the same time, we’ll collaborate with Next to integrate its innovative technology with our technical expertise, as part of our commitment to sustained profitable growth.”
Next highlighted that the U.S. is home to over 30 million small businesses across more than 1,000 professions, accounting for 99% of all companies and 44% of the American GDP. However, small business insurance penetration remains relatively low, with 75% of businesses considered “underinsured.” The highly fragmented potential market is estimated at $175 billion, offering significant growth opportunities.
Ardea Partners LP served as Next’s lead financial advisor, alongside Goldman Sachs & Co. and J.P. Morgan Securities LLC as additional financial advisors.
