Next Insurance co-founder: "An amazing deal for employees, investors, and founders" as Munich Re buys company for $2.6B
Munich Re’s acquisition of Next Insurance marks a major milestone for the insurtech company, with employees set to benefit alongside investors and founders.
"We are very happy—this is an amazing deal for the employees, who will benefit financially, as well as for the investors and for us as founders," Next Insurance co-founder and CTO Nissim Tapiro told Calcalist. He declined to specify exactly how much the employees are expected to receive from the sale of the insurtech company to insurance giant Munich Re at a $2.6 billion valuation. However, in companies like Next, it is common to allocate between 10% and 15% of the company in options to employees. "The employees are an important part of the deal, and it is important to the buyers that they are satisfied and continue working for the company. Although there are synergies, as in any acquisition, the plan is to expand Next’s workforce, which will also continue to operate as an independent division," Tapiro explained.
Both Tapiro (55) and Guy Goldstein (57), the company's CEO, will remain in their positions and continue working from the U.S., as they have in recent years. Alon Huri, the third founder of Next, left about a year ago to join the Team8 fund, where he is a partner in its fintech division.
German insurance giant ERGO and its parent company Munich Re already own 29% of Next. The $2.6 billion deal covers the acquisition of 100% of the Israeli company, meaning the actual amount now being transferred will be lower.
ERGO is a private company with approximately 38,000 employees and a presence in around 20 countries across Europe and East Asia. However, it currently lacks a presence in the U.S., a gap that Next is expected to fill. Last year, ERGO generated $20 billion in revenue and posted a profit of $770 million. Tapiro declined to comment on Next’s financial performance beyond noting that the company has grown at a rate of 25–30% in revenues in recent years. ERGO stated that the deal is expected to close in the third quarter of 2025 and that, in the medium term, Next is projected to contribute $200–300 million to its bottom line—described as "a low triple-digit million-dollar figure."
Addressing Next's valuation in the deal, which is lower than the $4 billion valuation from its last funding round, Tapiro said:
"This is a higher valuation than our previous round and one that we believe is fair, putting everyone in a good and comfortable position. The potential for growth here is enormous, and this is the right move for the company and our employees."
