By Michael Susin
Munich Re said it signed a definitive agreement to buy NEXT Insurance in a deal that values the business at $2.6 billion and will provide access to the U.S. market.
The German reinsurer on Thursday said the acquired business will become part of ERGO, the main insurance business of Munich Re, and is expected to contribute earnings in the mid-triple-digit million dollar range to Ergo's net result in the medium-term, with further significant earnings potential beyond.
NEXT Insurance is a U.S.-based property and casualty insurer focused on small business owners.
"We will tap into a highly attractive market overseas, unlocking significant growth opportunities while further diversifying our existing business portfolio," ERGO's Chief Executive Markus Riess said.
Munich Re also said the U.S. market is estimated at around $175 billion and offers significant growth potential.
The acquisition is forecast to be completed in the third quarter.
ERGO Group is currently a major shareholder of NEXT Insurance, holding nearly one third of the company's share capital.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
March 20, 2025 12:47 ET (16:47 GMT)
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