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The digital investments arm of global insurer and asset manager Allianz Group, Allianz X, announced an investment in NEXT Insurance, a small business insurer in the United States, to accelerate profitability as well as market expansion plans.

Allstate is also investing, bringing the funding round to a total of $265 million, the largest InsurTech raise so far this year in the U.S. and the largest P/C raise globally to date.

The strategic partnership will allow NEXT to continue growing its book of business, retaining risks and accelerating the company’s path to profitability. It also makes Allianz a capital partner in both risk and equity and includes a multi-year reinsurance relationship with Allianz Re.

“Small businesses are fundamental to every economy,” said Nazim Cetin, CEO of Allianz X. “NEXT understands the needs of this group deeply, and it has developed cutting-edge technology to address their common pain points. With Allianz’ deep expertise in this sector and NEXT’s technology, we can further our joint goal of giving customers the courage and security to take on the future with confidence.”

This is the third investment by Allianz X into the U.S. P/C SME InsurTech space ahead of the opening of its North America office in New York today. Known for investments in mature digital growth companies operating in ecosystems relevant to insurance and asset management, Allianz X led two of the largest U.S. InsurTech rounds last year—Pie Insurance ($315 million) and Coalition ($250 million).

The backing by Allstate means NEXT will provide products to Allstate customers, expanding its small business footprint nationwide. In addition, NEXT and Allstate will co-develop innovative commercial auto products.

“Combining Allstate’s operational expertise, broad distribution network and strong brand awareness with NEXT’s capabilities will help NEXT’s unique platform bring new, innovative products to existing Allstate customers and the millions of underserved small businesses that want affordable, simple and connected protection,” said Mario Rizzo, president of Property-Liability at Allstate Insurance. “Together, we will meet the full insurance needs of small businesses, delivered on the platform of the future.”

Founded in 2016, the technology-forward insurer offers immediate quotes and customized coverage through its online platform, boasts half-a-million customers across the U.S., and has received over $1.1 billion in venture capital funding to date.

“We founded NEXT because we saw an opportunity to help millions of small and microbusinesses across the U.S. and made it our mission to help entrepreneurs thrive,” said Guy Goldstein, CEO and co-founder of NEXT Insurance. “Building on our existing support, we are excited to welcome Allianz X and Allstate as investors, deepen our reinsurance relationship with Allianz Re, and foster a meaningful partnership with Allstate to offer millions of their customers our one-stop-shop small business insurance offering.”