Reinsurance News

American Financial Group buys software company Verikai

19th January 2022 - Author: Pete Carvill

American Financial Group has announced that it has bought machine learning company Verikai.

The latter, which has reportedly developed a machine learning tool to help assess insurance risk, will continue to be led by Jeff Chen, its current president and CEO.

Carl H. Lindner III, co-CEO of American Financial Group, said that the company was thrilled to welcome Verikai to AFG.

He added: “We believe that artificial intelligence and machine learning will continue to have a significant impact on the insurance industry and see Verikai as a thoughtful and effective leader in the use of these technologies.”

Verikai was founded in 2018 and is based in San Francisco. It received $6m in Series A Funding in August 2020. Its website claims that it has a database containing more than 5,000 behaviour attributes for more than 250m people in the United States. This, it says, provides deep insight into these individuals’ true health risks.

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Meanwhile, the Cincinnati-based American Financial Group has been going from strength to strength. In May last year, it reported that it had moved from a net loss in Q1 2020 of $301m to a net income of $419m in Q1 2021. That followed reporting in February 2021 that its Q4 2020 earnings were $692m, up from $211m in Q4 2019.

The deal between the two companies is said to be $120m in cash.

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