SHERIDAN, WYOMING – May 12, 2025 – In a move set to reshape the landscape of small business insurance, ERGO Group AG has officially announced the full acquisition of NEXT Insurance, opening the doors to the world’s largest insurance market—the United States. This strategic leap is not just about global expansion; it’s about transforming how American small business owners access and experience insurance.
A Big Win for Small Businesses Across the U.S.
With over 30 million small and medium-sized businesses (SMBs) across the U.S.—accounting for 99% of all companies and nearly half of the national GDP—ERGO is stepping into a market full of opportunity and in serious need of innovation. Currently, 75% of these businesses are underinsured. ERGO’s acquisition of NEXT Insurance targets this gap with one goal in mind: to make quality, affordable coverage more accessible to business owners from Main Street to Silicon Valley.
“This transaction marks the start of a new chapter for ERGO,” said Markus Rieß, CEO of ERGO Group. “Together with NEXT Insurance, we will tap into a highly attractive market overseas, unlocking significant growth opportunities while further diversifying our existing business portfolio.”
Next-Gen Insurance That’s Simple and Seamless
Founded in 2016 and based in Palo Alto, NEXT Insurance has quickly made a name for itself by using cutting-edge technology to streamline the insurance process. The company offers digital-first solutions like General Liability and Workers’ Compensation coverage—tailored specifically for the needs of small business owners.
What sets NEXT apart is its fully digital underwriting platform and proprietary technology stack, allowing customers to get insured faster and more easily than ever before.
“Over the past few years, we have transformed the U.S. small business insurance market by delivering a simple, seamless, tailored experience for business owners,” said Guy Goldstein, CEO of NEXT Insurance. “This transaction will propel us forward, allowing us to scale our technology-driven approach and empower even more small business owners with innovative insurance solutions.”
A Strategic Move with Consumer-First Benefits
The acquisition—valued at $2.6 billion—isn’t just a win for ERGO and Munich Re, its parent company. It’s a game-changer for the 600,000+ customers NEXT Insurance already serves and the millions more who can now look forward to:
- Faster, more intuitive policy setup
- Tailored coverage based on business type
- Seamless digital claims and customer service
- Greater peace of mind through a trusted global brand
ERGO plans to leverage its extensive insurance know-how to support NEXT’s continued growth, aiming for mid-triple-digit million-dollar contributions to the group’s earnings in the coming years.
What’s Next for NEXT (and You)?
While the transaction is pending regulatory approval, the closing is expected in Q3 2025. Once complete, NEXT Insurance will officially become part of the ERGO family, backed by the strength of Munich Re.
This partnership signals a new era in insurance where technology, simplicity, and customer focus take center stage. Whether you're a solo entrepreneur or run a growing team, smarter, more accessible insurance is on the horizon.
Learn more at https://www.nextinsurance.com