Metromile Announces Plan to Go Public

The pay-per-mile auto insurance pioneer will go public by merging with INSU II, a publicly-traded special purpose acquisition company sponsored by Cohen & Company.

(Image source: Metromile homepage.)

Metromile, the San Francisco-based pay-per-mile car insurance pioneer, has announced that it will go public by merging with INSU Acquisition Corp II (INSU II), a publicly-traded special purpose acquisition company sponsored by Cohen & Company (Philadelphia). Metromile CEO Dan Preston will continue to lead the company.

Dan Preston, CEO, Metromile.

Metromile and INSU II have entered into a definitive business combination that will result in Metromile becoming a publicly listed company. Upon closing of the transaction, the combined company will be named Metromile, Inc. and is expected to remain listed on NASDAQ under the new ticker symbol “MLE.”

“We founded Metromile to address the vast inequities in auto insurance, and we are proving that our model of real-time, digital auto insurance is both resilient and sustainable,” comments Preston. “Our data science-driven technology platform creates a significant advantage, and customers are thrilled with their savings and experience. At the same time, we’re generating industry-leading underwriting metrics and unit economics. We’re demonstrating there doesn’t have to be a tradeoff between customer happiness and a healthy, profitable business.”

“We are excited to bring our vision of transforming the auto insurance industry to the public markets by partnering with Daniel Cohen and the team at INSU II, whose deep experience in the insurtech space will help propel Metromile to the next level,” continues Preston. “Today’s announcement launches Metromile’s new chapter in delivering the fairest, most individualized auto insurance. As a public company, we expect to use our strengthened balance sheet to accelerate our growth, bring Metromile nationwide, and scale rapidly toward sustained profitability. The era of fixed price auto insurance is coming to an end.”

“The massive U.S. auto insurance industry has been inefficient and ripe for disruption for decades, and Metromile’s technology platform provides a clear competitive advantage over the legacy carriers, positioning them at the forefront of the revolution they founded,” comments Daniel Cohen, Chairman of the Board of Directors, INSU II. “Led by visionary technologists and complemented by the best veterans from top insurance carriers, Metromile has built a digital auto insurer with compelling and durable unit economics. The team has created a distinct offering that vastly differentiates Metromile in the marketplace.”

Chamath Palihapitiya, Founder and CEO, Social Capital.

Profitable Growth for Decades to Come

Metromile’s technology sets the company apart, driving huge advantages that will deliver significant and profitable growth for decades to come, according to Chamath Palihapitiya, Founder and CEO, Social Capital. “I expect them to be a generational business,” he says. “In addition to saving consumers considerable amounts of money, the Metromile platform has been built from the ground-up as a technology company, reshaping how an insurance business operates. No industry should be more impacted by digitization than insurance, and Metromile is leading the way. We are excited to work with this team and support their important transition to becoming a public company.”

“I’ve long been a fan of Metromile’s team and amazing product. During these times of financial hardship, unemployment, and work from home, Metromile provides an important insurance alternative,” comments Mark Cuban, an early investor in Metromile. “The option to pay for insurance by the mile is a game changer and why I’m incredibly excited about Metromile’s future!”

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at [email protected] or (503) 936-2803.

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