By Tom Sims and Alexander Hübner
FRANKFURT (Reuters) -Munich Re is shopping for the 71% of Next Insurance that it would not already personal, strengthening its foothold within the United States and valuing the California-based firm at $2.6 billion, a division of the German firm stated on Thursday. Ergo, the first insurance coverage enterprise of reinsurer Munich Re, will grow to be the only proprietor of Next, which is targeted on insuring U.S. small companies. Until now, Next buyers have included Allianz, Alphabet and American Express. It is the newest in a spate of offers affecting German insurance coverage firms.
“We will tap into a highly attractive market overseas, unlocking significant growth,” Ergo’s CEO Markus Riess stated.
Next was based in 2016 and now has round 700 workers and 600,000 prospects.
Munich Re and Ergo have been buyers since 2017.
Ergo stated the acquisition will improve internet outcomes by a mid three-digit million greenback quantity over the medium time period, which suggests an quantity of round $500 million.
The acquisition is predicted to shut within the third quarter pending regulatory approval.
Among latest exercise within the business, a consortium that features Allianz, BlackRock and T&D Holdings are investing in Viridium Group in a 3.5 billion euro ($3.79 billion) deal that can see personal fairness firm Cinven exit as a majority investor.
Allianz additionally stated this week that it could exit a three way partnership in India because it seeks a brand new associate there.
($1 = 0.9234 euros)
(Reporting by Tom Sims; Editing by Miranda Murray and Susan Fenton)
