ERGO Group Completes Acquisition of NEXT Insurance
DÜSSELDORF, Germany, July 01, 2025–ERGO Group AG has announced the successful conclusion of its acquisition of NEXT Insurance, a move facilitated by Munich Re Group. As a result, NEXT Insurance is now integrated into ERGO’s management framework, marking a significant step for Munich Re’s primary insurance operations. The deal met all necessary conditions for completion, including the requisite regulatory approvals, as planned. This acquisition allows ERGO to penetrate the U.S. insurance market, particularly focusing on the lucrative sector of small and medium-sized enterprises (SMBs). NEXT Insurance will enhance ERGO’s operational capabilities with its advanced technology and fully digital underwriting and pricing system. In return, ERGO will assist NEXT Insurance in its growth trajectory by utilizing its extensive expertise in the insurance domain.
Strategic Growth Potential in the U.S. Market
Markus Rieß, Chief Executive Officer of ERGO Group AG, remarked that the closing of this transaction is a pivotal achievement in establishing ERGO as a competitive insurance provider in the United States. He emphasized the potential for significant growth in this attractive market and expressed confidence in combining NEXT Insurance’s innovative approach with ERGO’s insurance proficiency to create value for all stakeholders involved.
NEXT Insurance Overview
Founded in 2016 and based in Palo Alto, California, NEXT Insurance specializes in digital property and casualty insurance tailored for U.S. small business owners. The company provides straightforward and digital insurance options, including General Liability and Workers’ Compensation. Since its inception, NEXT Insurance has experienced remarkable growth, achieving revenue of $548 million in 2024. It currently serves over 600,000 clients and employs around 700 staff members. The definitive agreement between Munich Re and NEXT Insurance was announced on March 20, 2025, valuing the company at $2.6 billion for all its shares. Prior to this acquisition, ERGO Group AG already held a significant stake in NEXT Insurance, owning about 29 percent of the company’s shares.
About ERGO Group AG
ERGO is recognized as one of the leading insurance groups in both Germany and Europe, operating in more than 20 countries with a primary focus on the European and Asian markets. The company offers a comprehensive range of insurance products and services to its retail and corporate clients. ERGO Group AG encompasses three operational units: ERGO Deutschland AG, ERGO International AG, and ERGO Technology & Services Management AG. These units manage both domestic and international operations, as well as global IT and technology services. The workforce comprises approximately 37,000 employees and independent sales representatives. In the 2024 fiscal year, ERGO reported insurance revenue totaling 20.8 billion euros, along with a net profit of 791 million euros. ERGO is part of Munich Re, a prominent player in the global reinsurance and risk management sector.
About NEXT Insurance
NEXT Insurance stands out as a pioneering digital insurer, revolutionizing small business insurance by providing straightforward, digital policies tailored for self-employed individuals. Trusted by over 600,000 entrepreneurs, NEXT offers hassle-free insurance options that can be purchased and managed around the clock, including Certificates of Insurance and additional insured options, all without hidden fees. By leveraging artificial intelligence and machine learning, NEXT simplifies the insurance buying process, making it more accessible. Headquartered in Palo Alto, NEXT has secured over $1 billion in venture capital and has garnered accolades from various industry platforms such as CNBC Disruptor 50 and Forbes Fintech 50.
Disclaimer
This media release contains forward-looking statements based on current assumptions and forecasts from ERGO Group management. Various known and unknown risks, uncertainties, and other factors could lead to significant discrepancies between these forward-looking statements and actual results, particularly regarding the company’s performance, financial condition, and overall results. The company does not assume any obligation to update these statements to align with future events or developments.
