Aviva takes majority stake in Munich Re-backed insurtech Neos

UK insurer Aviva is acquiring a majority stake in connected home insurer Neos Ventures, a London-based insurtech startup backed by Munich Re.

The insurer, through its corporate capital venture fund Aviva Ventures, made a £5 million investment in Neos in 2017. Neos also has an MGA (managing general agent) agreement with Munich Re, wherein the reinsurer underwrites Neos policies.

Neos was launched in 2016 with the aim to transform the home insurance market. Neos combines connected home devices – such as cameras and sensor technology – with home insurance. Its smart technology helps customers monitor and protect their homes with connected devices.

Aviva said the investment in Neos will help it build closer relationships with customers through digital technology and offer services to allow customers to better manage their lives day to day.

The transaction is expected to complete in the first quarter of 2019.

"By taking a majority share in the business, we’ll be able to use Neos’s expertise in smart technology, and we’re excited to build on our existing relationship with them," said Rob Townend, MD of Aviva UK general insurance.

"Harnessing the power of smart home technology allows customers to better manage what’s happening in their homes as well as helping them to avoid a small problem, like a slow water leak, becoming a big inconvenience," Townend added.

Matt Poll, Neos CEO, commented: "I am delighted that Aviva has chosen to make a further significant investment in Neos. It is a great reflection on how far we have come in creating value for our customers. I know Aviva shares our excitement about the future for our technology and innovative proposition in the insurance market and what Neos can go on to achieve."

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