SMB-focused Pie Insurance coverage raises $315M Collection D • TechCrunch

Pie Insurance coverage, which gives staff’ compensation insurance coverage to small companies, has closed on a  $315 million Collection D spherical of funding.

In 2021, the scale of this spherical wouldn’t have turned heads. However in right this moment’s atmosphere, the place buyers are pulling again and enterprise funding has slowed significantly, a $315 million elevate 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 TechCrunch.

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, says it has greater than doubled its gross written premium, and doubled its variety of policyholders and 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,” mentioned John Swigart, co-founder and CEO of Pie, in a written assertion. “It’s no secret that growth-stage startups, and particularly insurtechs, are dealing with a difficult fundraising atmosphere. Nevertheless, Pie’s capacity to develop quickly whereas nonetheless specializing in delivering sturdy 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 immediately by means of its web site and in addition principally by means of 1000’s 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 companion at Acrew Capital.

Wanting forward, Pie plans to make use of its new capital to develop into new traces of enterprise and transitioning to turn out to be 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 Change lined all through final 12 months, noting rising injury as valuations fell from low to decrease. And but when CB Insights dropped its 2021 fintech knowledge assortment, it famous that world 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 provide merchandise geared to e-bike and pre-fab householders, respectively.

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