Pie Insurance disclosed it has reached a premium milestone in the months after raising $127 million in new venture capital financing in May.
The InsurTech and MGA focused on workers comp insurance for small businesses is touting the fact that it has exceeded $100 million in cumulative written premium, and surpassed $100 million in annualized run rate premium, since its 2017 launch. That’s up from more than $30 million in written premium a year ago. As well, Pie said its agency channel has now reached 1,000 partners, a level the company claims is 200 percent higher than the beginning of 2020.
John Swigart, Pie’s co-founder and CEO, said in prepared remarks that “reaching $100 million in written premium in such a short time since our founding” reflects market demand for affordable workers compensation insurance that is easy to obtain and manage.
Pie declined to disclose whether it is profitable or what its timeline is for hitting profitability, though the premium growth underscores a solid growth trajectory.
The company now employs 180 people, up from 140 as of the end of 2019, according to a spokesperson. Plans are underway to fill 30 additional open positions in departments including Accounting and Finance, Business Development, Customer Success, Engineering, Marketing, Product and Underwriting.
Pie closed $127 million in new financing and capital commitments at the end of May from investors including Gallatin Point Capital, Greycroft, SVB Capital, Aspect Ventures, Elefund and Sirius International Insurance Group.
Broken down, that’s $27 million to support continued expansion of its offering to small business owners. The rest is a $100 million equity capital commitment designed to support Pie’s strategic initiative to form and purchase licensed insurance companies.
Pie’s financing came during the 2020 second quarter as part of an overall InsurTech venture capital rebound from the first quarter, when the coronavirus pandemic forced a drop in financings by about 50 percent compared to the previous year.
Pie launched in 2017 to provide workers comp insurance to small businesses directly through its website and through independent insurance agents. Pie operates as a managing general agency for Sirius America Insurance Company, a Sirius Group subsidiary.
Overall, Pie has raised $188 million. The company maintains headquarters operations in Denver, Colo. and Wasington, D.C.
Source: Pie Insurance