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Munich Re raises stake in US digital specialist

Munich Re has spent $US250 million ($370 million) to take its stake in Californian start-up Next Insurance to 27.5%.

Next Insurance offers tailored digital insurance solutions for American SMEs, a market with an annual premium volume of $US139 billion ($205 billion).

Munich Re-owned Digital Partners has been working with the Californian business since 2016.

“Next’s data- and technology-driven business model offers outstanding growth opportunities, which we will harness together,” Board of Management Chairman Joachim Wenning said.

“This investment emphasises Munich Re’s commitment to be the leading provider of digital insurance solutions. It also helps Munich Re expand its footprint in the promising insurance market for SME customers in the US.”

The transaction is subject to regulatory approval.