Pie Insurance, a Washington, DC-based tech-enabled workers’ compensation insurance platform for small businesses, has raised $315 million in a Series D funding round. Centerbridge Partners and Allianz X, Allianz Group’s digital investment arm, led the round.
White Mountains Insurance Group was a new investor in the round, and previous investors Gallatin Point Capital, Greycroft, Acrew Capital, and others also contributed.
The startup’s fundraising, which uses data analytics to offer SMBs a way to get insurance digitally and affordably, has turned many heads when markets are consolidating.
The Series D funding more than doubled Pie’s total capital raised to over $615 million, making it the most significant round of financing for any P&C insurance company based in the United States in 2022.
The funds will support the startup’s growth initiatives that directly impact its small business customers, such as expanding into new lines of business, transitioning to a full-stack carrier, and further innovating its advanced proprietary pricing algorithms to deliver excellent user and product experiences.
John Swigart, co-founder and CEO of Pie, said, “It’s no secret that growth-stage startups, 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 Insurance uses technology to make it easier for small businesses to purchase commercial insurance
Pie Insurance is using technology to improve how small businesses buy and use commercial insurance. The company focuses on granular pricing and data-driven customer segmentation to accurately match the price with risk across a wide range of small business types.
This enables Pie to provide small business owners with more affordable insurance. Since 2017, the company has collaborated with over 2,800 agencies.
“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 fundraising allows us to strategically expand in a way that serves the long-term interests of our customers, partners and investors,” said John Swigart.
This fundraiser comes after a period of rapid growth for the company. Pie recently announced that it had more than doubled its gross written premium and the number of policyholders and partners. Furthermore, the company expanded its coverage area into two new states, bringing its total workers’ compensation coverage footprint to 89 percent of all small businesses in the United States.
“Pie’s demonstrated ability to grow across multiple distribution channels at impressive loss ratios truly distinguishes them within the insurtech space. We’re attracted to technology enablement in the small commercial insurance market,” said Eric Hoffman, Managing Director at Centerbridge Partners.