Workers’ compensation InsurTech startup Pie Insurance raised $315 million in a Series D funding round that will be used to support the company’s expansion into new business lines and other growth initiatives.
The fresh capital will also go toward its transition to a full-stack carrier, further innovating upon its advanced proprietary pricing algorithms as the startup aims to continue providing simple and affordable commercial insurance to small businesses in the U.S., according to a press release Wednesday (Sept. 21).
The Series D was led by Centerbridge Partners and Allianz X, with participation by new investor White Mountains Insurance Group and previous backers Gallatin Point Capital, Greycroft, Acrew Capital and others.
“This round of financing 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 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.”
Swigart added that Pie’s “proprietary technology” better prices and underwrites risks and, as a result, is disrupting the “highly fragmented” small business commercial insurance market.
“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,” Swigart said.
The Series D round more than doubles Pie’s total capital raised to over $615 million. It’s also the largest funding round for any property and casualty insurance technology company in 2022, according to the release.
“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.