June 10, 2023

Pi Insurance, which provides Workers compensation insurance for small businesses, closes $315 million Series D round of funding.

In 2021, the size of this round will not be dizzying. But in today’s environment, where investors are pulling back and venture funding has slowed considerably, a $315 million increase stands out.

The funding more than doubles Pi’s total capitalization since its 2017 inception to more than $615 million. The company claims it is the largest financing for any US-based P&C (property and casualty) insurtech company this year. But this has not been independently verified by TechCrunch.

The assessment was not disclosed.

The Washington, DC-based startup, which uses data and analytics to offer SMBs a way to obtain insurance digitally and more affordably, said It more than doubled its gross written premiums, and doubled its number of policyholders and partners.

Centrebridge Partners and Allianz X – the digital investment arm of Allianz Group – co-led the round. White Mountain Insurance Group also joined as a new investor, and previous backers Gallatin Point Capital, Greycroft, Accrue Capital and others also participated in the round.

“This funding round is monumental in more ways than one,” said John Swigert, co-founder and CEO of Pi. “It’s no secret that growth-stage startups, and insurtech in particular, face a challenging fundraising environment. However, Pi’s ability to grow rapidly with a focus on delivering strong unit economics and sustainable loss ratios is proving to be a key differentiator.”

Pi’s customer base includes a range of small businesses, including trades, contractors, landscapers, janitorial, auto shops and restaurants. The company sells its insurance directly through its website and mostly through independent insurance agents.

success throughout Multiple distribution channels Coupled with “impressive loss ratios”. Centerbridge Partners attracted managing director Eric Hoffman to co-lead the investment.

Notably, workers’ compensation insurance is the only commercial insurance that is mandated by nearly every company in the United States, noted Lauren Kolodny, founding partner of Accrue Capital.

Looking ahead, Pie plans to use its new capital to expand into new lines of business and transition into a full-stack carrier.

As TC’s Alex Wilhelm wrote earlier this year: The decline in the value of public insurtech unicorns was a theme The Exchange covered throughout the past year, noting mounting losses as valuations fell from low to low. And yet when the CB insight drops Its 2021 fintech data collectionIt noted that global insurtech venture activity reached a new high during the year.

This week, we covered the rise of specialty insurance coverage providers Boundless Rider and Covertree, who offer products tailored to e-bike and pre-fab homeowners, respectively.

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