Allianz/Swiss Re/Lloyd’s backed Coalition valued at $5bn after fund raise

Cyber managing general agent (MGA)  Coalition, backed by leading global insurers Allianz, Swiss Re Corporate Solutions, Arch Insurance North America, Lloyd’s of London, and Ascot Group, has secured its latest funding for expansion at a whopping $5 billion market valuation.

The company has raised an additional $250 million in its Series F funding to accelerate its rapid growth, power international expansion, and broaden the services it offers to help organisations manage digital risk.

The round closed in June with participation from Allianz X, Valor Equity Partners, Kinetic Partners and other existing investors, increased Coalition’s valuation from $3.5 billion to $5 billion.

The new raise comes on the heels of Coalition's “growth at massive scale”, exceeding $775 million in run rate gross written premium and a nearly 200% increase in revenue growth over the prior year. Coalition partners with brokers in all 50 states to provide active cyber and active executive risks insurance and offers active cyber insurance across Canada.

Later this year, Coalition plans to launch its UK active cyber programme in partnership with Allianz.

Coalition has raised over $755 million in equity funding to date from leading global technology investors, including Durable Capital, T. Rowe Price Associates Inc, Whale Rock Capital, Index Ventures, General Atlantic, Ribbit Capital, Vy Capital and Valor Equity Partners, among others. Founded in 2017 by Joshua Motta and John Hering, it claims to be one of the largest cyber insurance and security providers in the US and Canada.

Joshua Motta (pictured), CEO and co-founder of Coalition, said: “Many organisations remain unprotected in the face of rising digital threats, and neither traditional insurance nor cybersecurity alone is well equipped to help them. Our active approach to underwriting, monitoring, and responding to digital risk has allowed Coalition to achieve market leading underwriting results while demonstrably reducing claims and losses for our customers so they can continue to thrive in the digital economy.”

Nazim Cetin, CEO of Allianz X, commented: “Coalition’s active, tech-based approach to cybersecurity and cyber insurance has proven to be profoundly effective, which is also reflected in its outstanding business results. The trends driving the importance of cyber defense are irreversible. We see an active approach as the most effective solution for addressing cyberthreats to businesses both now and in the future.”

Chris Golden, founder and chief investment officer at Kinetic Partners, added: “Coalition demonstrates clear market and technology leadership with growing network effects. With the company’s high-quality culture and outstanding execution, we believe Coalition’s competitive advantages and value-creation will continue to compound in the coming years.”