Munich Re has agreed to acquire cyber insurance startup At-Bay for an enterprise value of $575 million, bringing the insurtech fully into the German group’s insurance platform as the market continues to consolidate around cyber and small-business risk.
The transaction is expected to close in the first quarter of 2027, subject to customary conditions. At-Bay will be overseen by Munich Re’s HSB unit, which has supported the company since its launch in 2017.
At-Bay serves nearly 40,000 US businesses and generated $278 million in gross written premium and $23 million in cyber-services revenue in 2025. Its carrier, At-Bay Specialty Insurance Company, reported $269.2 million in gross written premium and $39.6 million in net written premium last year, alongside a $6.8 million underwriting loss and a $615,000 net loss.
The acquisition gives Munich Re control of a technology-driven cyber platform with an established US small-business distribution base, rather than building the capability organically.
A sharply lower valuation
The $575 million deal represents a significant reset from At-Bay’s previous private-market valuation.
The company raised nearly $296 million in disclosed funding, including three rounds involving Munich Re Ventures. Its valuation reached $1.35 billion after a $185 million Series D in 2021, more than twice the enterprise value attached to the company in the proposed acquisition.
Munich Re has therefore been involved with At-Bay well before becoming its prospective owner. The insurer participated in three funding rounds totaling $253 million, giving it an existing understanding of the business and its technology.
The deal also follows a period of strategic consolidation at At-Bay. The company acquired multi-carrier quoting platform Relay Platform but shut the platform down in August as it refocused on its core insurance and cybersecurity operations.
Munich Re doubles down on insurtech acquisitions
The acquisition extends Munich Re’s strategy of using acquisitions to build positions in technology-driven insurance markets.
The group acquired small-business insurer Next Insurance for $2.6 billion in 2025, also at a valuation below the company’s previous private-market expectations after a planned IPO failed to materialize.
At-Bay adds a different but complementary capability, giving Munich Re a specialist cyber platform alongside its broader small-business insurance exposure.
The move also highlights how the economics of insurtech have changed since the funding boom of 2020 and 2021. Companies that once commanded billion-dollar valuations are increasingly being assessed on underwriting performance, distribution, capital requirements and their ability to generate sustainable insurance returns.
For Munich Re, the $575 million price tag provides a way to acquire At-Bay’s technology, customer base and cyber expertise at less than half its 2021 valuation.
The transaction still leaves the parent company with the challenge of turning At-Bay’s technology-led model into a consistently profitable insurance business. At-Bay Specialty ended 2025 with $228 million in assets and $100.2 million in policyholder surplus, but remained loss-making on both underwriting and net income.
The broader signal is clear: Munich Re is betting that the value of At-Bay now lies less in its standalone insurtech valuation and more in what its cyber capabilities, distribution and technology can contribute inside a larger insurance group.
