Pie Insurance, a leading tech-enabled provider of workers’ compensation insurance to small businesses, has raised a $315 million Series D round of funding.
The round was led by Centerbridge Partners and Allianz X, the digital investments arm of Allianz Group.
At the same time, White Mountains Insurance Group also joined as a new investor, and previous investors Gallatin Point Capital, Greycroft, Acrew Capital, among others also participated in the round.
In addition, Ardea Partners served as an advisor on the Series D, while Kirkland & Ellis LLP acted as a legal advisor to Centerbridge Partners, Sullivan & Cromwell LLP acted as a legal advisor to Allianz X, and Cooley LLP acted as a legal advisor to Pie.
This Series D fundraise more than doubled Pie’s total capital raised to over $615 million and it is now the largest round of financing for any US based P&C insurtech company in 2022.
Furthermore, Pie’s Series D fund allows for the company to continue providing America’s 32.5 million small businesses with access to affordable commercial insurance.
Pie Insurance noted that it will use the funds to support its growth initiatives that directly impact its small business customers. This includes expanding into new lines of business, fully transitioning to a full-stack carrier, further innovating upon its advanced proprietary pricing algorithms, and delivering world-class user and product experiences directly to small businesses and the partner agents who serve them.
John Swigart, co-founder and CEO of Pie , commented: “This round of financing is monumental in more ways than one. It’s no secret that growth-stage startups, and specifically insurtechs, are facing a challenging fundraising environment. However, Pie’s ability to grow rapidly while still focusing on delivering strong unit economics and sustainable loss ratios, is proving to be a key differentiator. Pie is disrupting the highly fragmented small business commercial insurance market through our proprietary technology which more accurately prices and underwrites insurance risks.
“We believe the insurtech 2.0 phase of this industry-wide transformation will be built by companies like Pie that leverage their technology to ‘do the insurance better’ and deliver superior traditional insurance metrics along with a delightful customer experience.”
“Pie’s demonstrated ability to grow across multiple distribution channels at impressive loss ratios truly distinguishes them within the insurtech space,” said Eric Hoffman, Managing Director at Centerbridge Partners.
“We’re attracted to technology enablement in the small commercial insurance market, and Centerbridge is excited to partner with Pie on its journey to transform the industry.”
Swigart continued: “Since our founding in 2017, Pie’s mission has been to empower small businesses to thrive by making commercial insurance affordable and as easy as pie. This fundraise allows us to strategically expand in a way that serves the long-term interests of our customers, partners, investors, and Pie-oneers. Pie has an exciting future ahead and this capital allows us to stay true to our values, execute on our vision, and build a lasting and sustainable business.”
Dr. Nazim Cetin, CEO of Allianz X, added: “We’ve been continuously impressed by Pie’s innovation and ability to deliver strong growth and underwriting results since our relationship began with co-leading the company’s Series C round in early-2021. We’ll be there to support Pie every step of the way as the company continues its bold transformation to a full-stack insurer and expansion into new lines of business.”