Venture Capital: Pie, Which Specializes In Workers Compensation Insurance, Raises $315M
Pie focuses on worker’s compensation insurance for small businesses. “More than three-quarters of small businesses overpay for workers’ comp coverage,” it claims.
Pie Insurance, a small business-focused insurtech, raised a $ 315 million series D round led by Centerbridge Partners and Allianz X, the digital investments arm of Allianz Group. White Mountains Insurance Group participated as a new investor, while Gallatin Point Capital, Greycroft, Acrew Capital and others were repeat investors. (Pie Insurance)
According to Pie, this is the largest round of financing for any U.S.-based P&C insurtech a company in 2022. Including this raise the start-up has raised well over $ 615 million in total capital.
The insurtech will deploy the new capital to grow small business focused insurance business, expand into new businesses, while transitioning into becoming a full stack carrier. It intends to further develop its advanced proprietary pricing algorithms that enable it to provide simple and affordable commercial insurance to nearly 32.5 million small businesses in America.
In May, Pie announced that during the first quarter of 2022, it more than doubled its gross written premium over the corresponding period in 2021. Furthermore, in the first four months of 2022, it boosted its annualised run rate premium to nearly $ 300 million. It also said it had more than doubled its number of policyholders and insurance agency partners since the beginning of 2021. The growth did not come at the expense of profitability – Pie achieved a claim frequency below industrial averages and loss ratios on par with the industry average.
“Pie is disrupting the highly fragmented small business commercial insurance market through our proprietary technology which more accurately prices and underwrites insurance risks, said John Swigart, co-founder and CEO of Pie. “We believe the insurtech 2.0 phase of this industry-wide transformation will be built by companies like Pie that leverage their technology to ‘do the insurance better’ and deliver superior traditional insurance metrics along with a delightful customer experience.”
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