San Francisco-headquartered broker, Newfront Insurance has announced a $200 million investment at a $2.2 billion valuation to modernise insurance, led by the Growth Equity business within Goldman Sachs Asset Management and B Capital.Further participation in the round came from existing investors including Founders Fund and Meritech Capital.
“The nature of risk has changed drastically over the past century but the insurance industry has not modernized to meet these new challenges,” said Newfront Co-Founder and CEO Spike Lipkin. “This investment furthers Newfront’s commitment to building the modern platform for clients, insurance professionals, and trading partners.”
In a press release it states that Newfront plans to grow its technology teams and focus in particular on harnessing data-driven insights for clients.Furthermore, the company plans to invest in specialised client resources and experts across a wide variety of industries and expand across the US.
The financing also serves as further validation of the merger of Newfront and ABD, which occurred in August 2021. In just seven months, the company has already launched a new client dashboard, refined benchmarking capabilities, welcomed over 200 new colleagues, and also experienced record-breaking growth while achieving profitability.
Executive Chairman of Newfront, Kurt de Grosz, said: “Newfront is the model our industry desperately needs– one that puts clients and colleagues at the centre and where shareholder returns are connected to delivering client value.”
President of Newfront, Brian Hetherington, added: “We are finding that talented brokers and insurance professionals are voting with their feet and leaving 100 year old platforms to join us in pursuit of a better client and colleague experience. There has never been a better time to join Newfront.”
Co-Founder and CTO of Newfront, Gordon Wintrob, also added, “Our technology teams have spent five years converting pen and paper and systems of record into a system of action that improves the experience for clients, colleagues, and trading partners. Structured data will transform our industry.”
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