(Image source: Policygenius homepage.)
Policygenius (New York), an online distribution site for insurance and financial protection, has announced the closing of $125 million of new growth capital, bringing the company’s total funding to more than $250 million.
All existing major investors participated in the round, including KKR, Norwest Venture Partners, and Revolution Ventures. New investors included several of the largest annuity and life insurance carriers in North America, e.g., Brighthouse Financial, Global Atlantic Financial Group, iA Financial Group, Lincoln Financial, and Pacific Life. The investment of these carriers, along with additional investment by existing investors that included AXA Venture Partners and MassMutual Ventures, shows the industry’s support of the company’s track record and transformative vision, according to a Policygenius statement. As part of the financing round, ORIX Corporation USA’s Growth Capital group provided a new credit facility for the company to help finance its growth, and Policygenius refinanced its existing senior loan facility with JPMorgan Chase.
Policygenius describes itself as the one-stop digital platform for consumers to compare and purchase insurance. Since its founding in 2014, Policygenius has built integrations with the most prominent insurance carriers and developed proprietary technology for quoting, underwriting, and fulfillment. Earlier this year, the company announced the launch of its Policygenius Pro offering, which it describes as bringing the power of the Policygenius life insurance platform to B2B distribution partners.
Since its Series D financing, Policygenius reports that it has ramped up its investment in exclusive, integrated no-exam life insurance offerings to address the COVID-related impacts on life insurance medical exams and to improve the customer experience. Policygenius reports that, over the past two years, its no-exam life insurance business has grown by 30x in volume. In 2021 the company wrote $40 billion of new life insurance coverage, nearly 70 percent more than it wrote in 2019. Policygenius says it is on pace to be the single largest distribution platform for term life insurance this year.
The company reports that its home and auto insurance business has also grown significantly, with new written premiums having increased more than 6x from 2019 to 2021. Policygenius claims that it continues to be the only tech-enabled brokerage and distribution platform to have successfully scaled and diversified across life and home and auto insurance.
Policygenius says it will use the new capital to continue to invest in the growth of its core businesses of life, disability, home, and auto insurance, as well as new no-exam life insurance offerings and Policygenius Pro.
“Over the past eight years, we’ve invested in the critical areas of technology, operations, and product development to deliver the best outcomes for our customers, carriers, and distribution partners,” comments Jennifer Fitzgerald, CEO and co-founder of Policygenius. “With the support of our new and existing investors, we’re excited to expand our already-large reach across the trillion dollar insurance market.”
Policygenius recently won its second Stevie Award for customer service, affirming its claim of industry-leading customer experience, and was just recognized by Forbes as one of the Best Startup Employers for the third consecutive year.