(Image source: Zinnia.)
Zinnia (Topeka, Kan., formerly SE2), a life and annuity insurance technology and digital services company, has announced that it is acquiring digital insurance marketplace Policygenius (New York). Zinnia characterizes the acquisition as laying the foundation for the industry’s first front-to-back architecture to power the entire insurance value chain and better serve carriers, advisors, and policyholders.
Zinnia says the transaction expands its reach into digital distribution solutions, creating new opportunities to service carriers and distribution partners. Together, Zinnia and Policygenius will offer products and services spanning life and annuities, disability, and property and casualty insurance. Policygenius simplifies the process for consumers to buy insurance, with a platform that has an extensive data analytics capability that, combined with Zinnia’s growing tech capabilities and well-established third-party administrator (TPA) infrastructure, lays the groundwork for exceptional experiences for those who buy, sell, manufacture or administer insurance policies.
Zinnia reports that it will continue to offer Policygenius’ full suite of online services under the Policygenius brand. These capabilities will connect with Zinnia’s new system of record to further develop the its “open insurance” architecture. The acquisition also opens growth opportunities for Zinnia’s and Policygenius’ combined 60+ carrier clients, 350 distributors and partners, and 2M+ policyholders, a Zinnia statement says.
“At Zinnia, we want to provide solutions that simplify the process of buying insurance and deliver an exceptional experience for consumers from purchase to claim,” comments Michele Trogni, CEO, Zinnia. “Policygenius has always put consumer experience at the heart of their business, and their capabilities will accelerate our journey. We look forward to welcoming Policygenius clients, an experienced leadership team, and approximately 450 new team members to Zinnia, and are excited to power growth in our industry.”
Fulfilling the Promise of Open Insurance
“We are thrilled to have a partner in Zinnia, that shares in our vision to transform the industry through technology and a consumer-first approach,” says Jennifer Fitzgerald, Co-founder and CEO, Policygenius and newly appointed Zinnia board member. “Their depth of insurance expertise and entrepreneurship has resulted in more than $170 billion in assets under administration and the launch of 170+ new carrier products. Together, we will expand the reach of our carrier and distribution partners, helping even more consumers achieve financial protection. The promise of open insurance is huge, and we are excited to embark on this journey with Zinnia together.”
“This strategic combination positions Zinnia and Policygenius to deliver great benefits for carriers and consumers, and we believe there is enormous unmet demand in the market for a seamless digital experience underpinned by a compelling, end-to-end insurance offering,” comments Jake Heller, Partner at KKR and newly appointed Zinnia board member. “We look forward to serving as an investor in the combined business alongside Eldridge and supporting Michele, Jennifer, and these talented teams in their next chapter of growth.”
KKR, through its Technology Growth strategy, was a lead investor in Policygenius and affirms that it will remain an investor in the combined company.
Sidley Austin LLP and WilmerHale served as legal counsel to Zinnia. Latham & Watkins LLP served as legal counsel to Policygenius.