Munich Re’s Ergo to Buy Next Insurance in $2.6 Billion Deal

Munich Re agreed to buy Next Insurance in a deal valuing the US-based startup at $2.6 billion.

Next Insurance, which is headquartered in Palo Alto, California, will become part of Munich Re’s primary insurance unit Ergo upon completion of the transaction, which is expected in the third quarter, according to a statement Thursday.

The deal marks the first foray for Munich Re’s primary insurer into the world’s largest insurance market, where it is seeking to tap demand from small and medium-sized businesses. Chief Executive Officer Joachim Wenning has worked to reduce complexity within the company and turned around Ergo, which ...