Workers compensation provider Pie Insurance announced the closing of $127 million in new financing and capital commitments.
Gallatin Point Capital joined the InsurTech’s current investors in the capital raise, including Greycroft, SVB Capital, Aspect Ventures, Elefund and Sirius International Insurance Group.
The company said the new financing includes $27 million to support the continued expansion of Pie Insurance’s offering to small business owners. The additional $100 million equity capital commitment will also support Pie’s strategic initiative to form and purchase licensed insurance companies.
Pie was founded in 2017 to provide workers comp insurance to small businesses, both directly through its website and also through independent insurance agents. Pie operates as a managing general agency for Sirius America Insurance Company, a subsidiary of Sirius Group.
Pie plans to form an affiliated company, Pie Carrier Holdings—in which Gallatin Point Capital is the lead investor—to create and purchase licensed insurance companies. Pie Carrier Holdings will own the licensed insurance companies that Pie will use to issue a portion of its insurance policies.
The company said Sirius Group is also investing directly in Pie Carrier Holdings and will continue to issue insurance policies offered by Pie.
“We’re impressed with the results Pie has achieved in such a short time period,” said Matt Botein, co-founder and managing partner at Gallatin Point Capital. “We welcomed the chance to contribute to their expansion strategy in a meaningful way.”
A year ago, Pie completed a $45 million Series B funding round. Participating investors included SVB Capital, Sirius Group, Greycroft, Moxley Holdings, Aspect Ventures and Elefund.
To date, Pie has raised $188 million.
Pie said its written premium grew to nearly $19 million in the first quarter of 2020.
Pie offers workers comp coverage using an online quote tool in 34 states and the District of Columbia. The company said it will continue to expand across the nation to serve more small businesses, either directly or through their agents.
*This article was originally published by our sister publication Insurance Journal