Ergo enters US insurance market with acquisition of Next Insurance

With this acqui­si­tion, Ergo is ente­ring the US market for busi­ness insu­rance and is focu­sing on small and medium-sized enter­pri­ses (SMEs). “The acqui­si­tion of Next Insu­rance is an important step for Ergo. The US market offers great poten­tial, and the digi­ta­liza­tion of Next Insu­rance will enable us to serve it effi­ci­ently,” says Markus Rieß (photo © Ergo), CEO of the Ergo Group.

Next Insu­rance also sees advan­ta­ges in the take­over. “We have shaped the US SME insu­rance market with digi­tal insu­rance solu­ti­ons. The inte­gra­tion with Ergo and Munich Re gives us the oppor­tu­nity to further deve­lop our offe­ring and reach more custo­mers,” says Guy Gold­stein, CEO of Next Insurance. 

The need for insu­rance in the USA

There are more than 30 million small busi­nesses in the USA, which account for 99% of all compa­nies and gene­rate 44% of the US gross dome­stic product (GDP). Many of these busi­nesses are inade­qua­tely insu­red: around 75 percent do not have suffi­ci­ent protec­tion. The market for SME insu­rance is esti­ma­ted to be worth around 175 billion US dollars. 

Next Insu­rance is a rela­tively young company. The insurer was foun­ded in 2016, is based in Palo Alto, Cali­for­nia and curr­ently has around 700 employees. The company offers digi­tal insu­rance solu­ti­ons, inclu­ding public liabi­lity and acci­dent insu­rance. In 2024, it gene­ra­ted a turno­ver of USD 548 million and serves more than 600,000 customers. 

Consul­tant Next Insurance:

Ardea Part­ners LP, Gold­man Sachs & Co. LLC and J.P. Morgan Secu­ri­ties LLC also supported Next Insu­rance, with Latham & Watkins LLP as legal counsel.

Advi­sors to Ergo and Munich Re:
Kirk­land & Ellis LLP, Barnea Jaffa Lande & Co., Bain & Company, Inc. and Morgan Stan­ley & Co. LLC.