Global insurance leader Munich Re has announced its definitive agreement to acquire the Israeli-founded insurtech company At-Bay for an enterprise value of $575 million. This strategic acquisition aims to bolster the German insurance giant's position in the rapidly evolving cyber insurance sector. The deal underscores a growing industry trend of integrating proactive cybersecurity solutions with traditional insurance products.
A Strategic Move in the Cyber Insurance Market
The transaction will see At-Bay operate under the oversight of Hartford Steam Boiler (HSB), a technology-focused subsidiary within Munich Re's specialty insurance division. This move is designed to leverage HSB's market expertise to support At-Bay's continued growth in the United States. The acquisition is a clear signal of Munich Re's commitment to leading the cyber risk market.
Mike Kerner, a member of Munich Re's Board of Management, described At-Bay as an essential component of the company's future cyber offering. He emphasized that the business is expected to become a significant driver of earnings growth over time. This acquisition positions Munich Re to better serve a market shifting towards integrated risk management platforms.
Integrating Security and Insurance
At-Bay has distinguished itself by providing a unified platform that combines cyber insurance with continuous security monitoring for small and medium-sized enterprises. Its model focuses on proactively identifying and mitigating cyber risks for its clients throughout the policy lifecycle. This approach helps reduce exposure before a potential cyberattack can even occur.
HSB President and CEO Jeffrey O’Shaughnessy called the combination a "logical match," highlighting the shared vision for risk prevention. The partnership will merge At-Bay's advanced cyber capabilities with HSB's deep underwriting expertise. Together, they aim to accelerate innovation and deliver a more holistic cyber protection ecosystem for customers.
At-Bay's Journey and Market Context
Founded in 2016, At-Bay previously achieved a unicorn valuation of $1.35 billion during a 2021 funding round. The company has raised $276 million to date but has also faced recent market challenges, including employee layoffs. The current acquisition price reflects the shifting dynamics within the technology and insurance sectors.
This deal marks Munich Re's second major acquisition of an Israeli insurtech firm, reinforcing the country's status as a key technology hub. It follows the 2025 acquisition of Next Insurance by ERGO, another entity within the Munich Re group. These moves demonstrate a clear strategy of investing in technology-driven insurance solutions from the region.
The acquisition of At-Bay by Munich Re represents a significant milestone in the convergence of cybersecurity and insurance. Subject to regulatory approvals, the transaction is expected to close in the first quarter of 2027. At-Bay CEO Rotem Iram stated that joining Munich Re will accelerate the company's mission to close the cybersecurity protection gap for businesses worldwide.