Pie Insurance coverage, which offers staff’ compensation insurance coverage to small companies, has closed on a $315 million Sequence D spherical of funding.
In 2021, the dimensions of this spherical wouldn’t have turned heads. However in as we speak’s setting, the place traders are pulling again and enterprise funding has slowed significantly, a $315 million increase stands out.
The financing greater than doubles Pie’s whole capital raised since its 2017 inception to over $615 million. The corporate claims that it’s the largest funding spherical for any U.S.-based P&C (Property & Casualty) insurtech firm this 12 months. However that has not been verified independently by Fintech.
Valuation was not disclosed.
The Washington, D.C.-based startup, which makes use of knowledge and analytics in its effort to supply SMBs a method to get insurance coverage digitally and extra affordably, instructed Fintech that within the first 4 months of 2022, it elevated its annualized run fee premium (ARR) to just about $300 million. It additionally greater than doubled its gross written premium within the first quarter of 2022 in comparison with the identical interval in 2021.
And, because the starting of 2021 to Could 2022, Pie greater than doubled its variety of policyholders and insurance coverage company companions.
Centerbridge Companions and Allianz X – the digital investments arm of Allianz Group – co-led the spherical. White Mountains Insurance coverage Group additionally joined as a brand new investor, and former backers Gallatin Level Capital, Greycroft, Acrew Capital and others additionally participated within the spherical.
“This spherical of financing is monumental in additional methods than one,” stated John Swigart, co-founder and CEO of Pie, in a written assertion. “It’s no secret that growth-stage startups, and particularly insurtechs, are going through a difficult fundraising setting. Nonetheless, Pie’s potential to develop quickly whereas nonetheless specializing in delivering robust unit economics and sustainable loss ratios, is proving to be a key differentiator.”
Pie’s buyer base features a vary of small companies together with trades, contractors, landscapers, janitors, auto retailers and eating places. The corporate sells its insurance coverage straight by means of its web site and in addition principally by means of hundreds of impartial insurance coverage brokers.
Success throughout a number of distribution channels mixed with “spectacular loss ratios” attracted Eric Hoffman, managing director at Centerbridge Companions, to co-lead the funding.
Notably, staff’ compensation insurance coverage is the one business insurance coverage mandated for almost each firm in the USA, factors out Lauren Kolodny, founding associate at Acrew Capital.
Trying forward, Pie plans to make use of its new capital to broaden into new strains of enterprise and transitioning to change into a full-stack service.
As TC’s Alex Wilhelm wrote earlier this 12 months: The decline within the worth of public insurtech unicorns was a theme that The Trade lined all through final 12 months, noting rising harm as valuations fell from low to decrease. And but when CB Insights dropped its 2021 fintech knowledge assortment, it famous that international insurtech enterprise exercise hit a brand new excessive within the 12 months.
This week, we lined the rise of specialty insurance coverage protection suppliers Boundless Rider and CoverTree, who supply merchandise geared to e-bike and pre-fab householders, respectively.
Reporter’s observe: This story was up to date post-publication to incorporate extra info offered by the corporate.
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