Pie Insurance Announces $315 Million Series D Funding Round


Small business-focused insurtech raises sector’s biggest funding round of the year

DENVER, September 21, 2022 /PRNewswire/ — Pie Insurance (“Pie”), a leading technology provider of workers’ compensation insurance for small businesses, today announced that it has raised a $315 million Series D funding round. The round was led by Centerbridge Partners and Allianz X, the digital investment arm of the Allianz Group. White Mountains Insurance Group also joined as a new investor, and former investors Gallatin Point Capital, Greycroft, Acrew Capital and others also participated in the round.

Today’s Series D fundraising more than doubled Pie’s total capital raised to over $615 million and is the largest funding round for a US-based health insurance company in 2022.

“This round of funding is monumental in more ways than one,” said John Swigart, co-founder and CEO of Pie. “It’s no secret that growth-stage startups, and insurtechs in particular, face a challenging fundraising environment. However, Pie’s ability to scale quickly while focusing on delivering strong unit cost savings and sustainable loss ratios, is proving to be a key differentiator Pie is disrupting the highly fragmented small business commercial insurance market with our proprietary technology that more accurately assesses and underwrites risk of insurance. better insurance” and provide superior traditional insurance measures as well as a pleasant customer experience.”

“Pie’s demonstrated ability to scale across multiple distribution channels at impressive shedding rates truly sets them apart in the insurtech space,” said Eric Hoffman, Managing Director at Centerbridge Partners. “We are drawn to enabling technology in the small business insurance market, and Centerbridge is thrilled to partner with Pie on his journey to transform the industry.”

“Since our inception in 2017, Pie’s mission has been to enable small businesses to thrive by making commercial insurance affordable and as easy as pie,” Swigart continued. “This fundraising allows us to strategically grow in a way that serves the long-term interests of our customers, partners, investors and Pie-oneers. Pie has an exciting future ahead of it and this capital allows us to stay true to our values, execute on our vision, and build a sustainable and sustainable business.”

Pie’s Series D Enables Company to Continue to Supply America’s 32.5 Million Small Businesses1 with access to simple and affordable business insurance. The company will use the funds to support Pie’s growth initiatives that directly impact its small business customers, including expansion into new lines of business, full transition to a full operator, additional innovation on its advanced proprietary pricing algorithms and the delivery of world-class user and product experiences directly to small businesses and the agent partners who serve them.

“We have been continuously impressed with Pie’s innovation and ability to drive strong growth and underwriting results since beginning our relationship with the company’s co-management Round C series early 2021,” said Dr Nazim Cetin, CEO of Allianz X. “We will be there to support Pie every step of the way as the business continues its bold transformation into a comprehensive insurer and expansion into new lines of Company.”

Today’s fundraiser follows a period of incredible growth for Pie, most recently the company announcement it more than doubled its gross written premium and doubled its number of policyholders and partners. Also, Pie extended its coverage area in two new states, increasing its total workers’ compensation coverage footprint to 89% of small businesses in the United States2

Ardea Partners acted as counsel on Series D. Kirkland & Ellis LLP acted as legal counsel to Centerbridge Partners, Sullivan & Cromwell LLP acted as legal counsel to Allianz X and Cooley LLP acted as as Pie’s legal adviser.

About Pie Insurance

Pie insurance leverages technology to transform the way small businesses buy and use commercial insurance, with the goal of making it affordable and easy as pie. Pie’s focus on granular, sophisticated pricing and data-driven customer segmentation allows Pie to precisely match price to risk across a wide range of small business types, enabling Pie to provide more affordable insurance for small business owners. Since 2017, Pie has received more than $615 million in funding and in partnership with more than 2,800 agencies nationwide.

About Allianz X

Allianz X invests in digital leaders in ecosystems relevant to insurance and asset management. In just a few years, he grew to a portfolio of almost 30 companies and assets under management of more than 2 billion euros. Allianz X has 11 unicorns in its portfolio so far. The heart and brain behind it all is a talented team of around 40 people. As one of the pillars of the Allianz Group’s digital transformation strategy, Allianz X provides an interface between Allianz operating entities and the wider digital ecosystem, enabling collaborative partnerships in insurtech, fintech and beyond. As an investor, Allianz X helps mature digital growth companies take the next bold step and reach their full potential.

About Centerbridge Partners

Centerbridge Partners, LP is a private investment management firm that uses a flexible approach across all investment disciplines – private equity, credit and real estate – with the aim of developing the most attractive opportunities for our investors. The Firm was founded in 2005 and since June 30, 2022 at about $34 billion in capital under management with offices in New York and London. Centerbridge is committed to partnering with world-class management teams in targeted industries and geographies. For more information, please visit www.centerbridge.com.

[1] US Small Business Administration Office of Advocacy, 2021 Small Business Profile, United States.

[2] https://advocacy.sba.gov/2021/08/30/2021-small-business-profiles-for-the-states-the-district-of-columbia-and-the-us/

SOURCE Pie Insurance


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