Munich Re Acquires At-Bay for $575 Million, Half Its 2021 Value
Munich Re has agreed to buy cyber-insurer At-Bay for $575 million, less than half the $1.35 billion At-Bay was worth in 2021 (a reset that reflects a cooler market for insurtech since its peak). The acquisition is scheduled to close in the first quarter of 2027, subject to regulatory approvals and customary conditions, according to Reuters.
What At-Bay Does
At-Bay mainly sells cyber insurance to small and medium-sized businesses, pairing it with its own security software. They call this approach "InsurSec", focusing on preventing attacks rather than just paying out after them. Their platform continuously monitors a customer’s cyber exposure over the life of a policy, using insights to reduce risk for both the client and At-Bay.
About At-Bay
Founded in 2016 (with roots in Israel), At-Bay is headquartered in the United States and employs approximately 280 people across the US and Israel. They claim to protect close to 40,000 businesses in the U.S., covering up to $800 billion in combined revenue.
Why Munich Re Wants It
Munich Re framed this acquisition as a bet on the future of cyber coverage, stating that the market is shifting from standalone policies towards platforms that bundle insurance with security. They aim to secure a larger position in this shift by targeting small firms facing significant cyber threats despite often lacking adequate defense mechanisms.
"At-Bay is ‘a perfect addition to our specialty insurance portfolio,’ said Mike Kerner, a member of Munich Re’s board. He expected the business to become a strong earnings driver over time."
The Acquisition’s Road
The sale follows a challenging period for At-Bay, marked by changes in the insurance market and rising interest rates.