US-based insurance business Zinnia has agreed to acquire digital insurance marketplace Policygenius – a deal that it says will “lay the foundation” for the industry’s first front-to-back architecture to power the insurance value chain.
Together, Zinnia and Policygenius will offer products and services spanning life and annuities, disability, and P&C insurance The combined company will boast more than 60 carrier clients, 350 distributors and partners, and 2mn+ policyholders.
It follows a mixed 12 months for Policygenius, which was founded in 2014 by Jennifer Fitzgerald and Francois de Lame: in March 2022, the company raised US$125mn in its latest series funding round, taking the total amount raised to date to more than $200mn. But by June, the insurtech was announcing layoffs amounting to 25% of its workforce amid a difficult climate for the entire insurtech sector. The sale to Zinnia appears to be a mutually beneficial resolution to that.
Zinnia on a mission ‘to simplify insurance buying’
Policygenius Co-founder and CEO Jennifer Fitzgerald, who will join the board of Zinnia, says: “We are thrilled to have a partner in Zinnia that shares in our vision to transform the industry through technology and a consumer-first approach. Their depth of insurance expertise and entrepreneurship has resulted in more than $170bn in assets under administration and the launch of 170+ new carrier products. Together, we will expand the reach of our carrier and distribution partners, helping even more consumers achieve financial protection. The promise of open insurance is huge, and we are excited to embark on this journey with Zinnia together.”
Zinnia Chief Executive Officer Michele Trogni says: “At Zinnia, we want to provide solutions that simplify the process of buying insurance and deliver an exceptional experience for consumers from purchase to claim. Policygenius has always put consumer experience at the heart of their business, and their capabilities will accelerate our journey. We look forward to welcoming Policygenius clients, an experienced leadership team, and approximately 450 new team members to Zinnia, and are excited to power growth in our industry.”
KKR, which was a lead investor in Policygenius through its technology growth strategy, will remain an investor in the combined company. Jake Heller, Partner at KKR, adds: “This strategic combination positions Zinnia and Policygenius to deliver great benefits for carriers and consumers, and we believe there is enormous unmet demand in the market for a seamless digital experience underpinned by a compelling, end-to-end insurance offering. We look forward to serving as an investor in the combined business alongside Eldridge and supporting Michele, Jennifer, and these talented teams in their next chapter of growth.”