Pie insurance that provides workers compensation insurance for small businesses, closed a $315 million Series D funding round.
In 2021, the size of this circle would not attract attention. But in today’s environment, where investors are pulling back and venture funding has slowed significantly, the $315 million increase stands out.
The funding more than doubles Pie’s total capital raised since its inception in 2017 to over $615 million. The company claims this is the largest funding round for a US-based P&C (Property & Casualty) insurance company this year. But this has not been independently confirmed by TechCrunch.
The rating was not released.
The Washington, D.C.-based startup, which is using data and analytics in its effort to offer small and medium-sized businesses a way to get insurance digitally and at more affordable prices, says it is more than doubled its gross written premium and doubled the number of policyholders and partners.
Centerbridge Partners and Allianz X – the digital investment arm of Allianz Group – led the round. White Mountains Insurance Group also joined as a new investor, and previous backers Gallatin Point Capital, Greycroft, Acrew Capital and others also participated in the round.
“This round of funding is monumental in more ways than one,” said John Swigart, co-founder and CEO of Pie, in a written statement. “It’s no secret that growth-stage startups, and insurtechs in particular, face a challenging fundraising environment. However, Pie’s ability to grow rapidly while focusing on delivering strong unit economics and sustainable loss ratios is proving to be a key differentiator.”
Pie’s customer base includes a range of small businesses including trades, contractors, landscapers, janitors, auto shops and restaurants. The company sells its insurance directly through its website and also mostly through thousands of independent insurance agents.
Good luck through multiple distribution channels combined with “impressive loss ratios” brought on Eric Hoffman, managing director of Centerbridge Partners, to co-lead the investment.
It should be noted that workers’ compensation insurance is the only commercial insurance required for almost every company in the United States, points out Lauren Kolodny, founding partner at Acrew Capital.
Looking ahead, Pie plans to use its new capital to expand into new business lines and become a full-package carrier.
Like TC’s Alex Wilhelm wrote earlier this year: The decline in the value of public insurance unicorns was a the topic The Exchange covered last yearnoting increasing damage as ratings fell from low to lower. Yet when CB Insights fell its fintech data collection for 2021he noted that global risk activity in insurance technology reached a new high during the year.
This week we took a look rise in specialist insurance coverage providers Boundless Rider and CoverTree, which offer products aimed at e-bike and prefab home owners, respectively.
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