Munich Re to acquire Israeli-founded At-Bay for $575 million
The German insurance giant is buying the cyber insurtech at less than half its 2021 valuation, as insurers increasingly seek to combine coverage with technology that can prevent cyber losses.
Munich Re has agreed to acquire At-Bay, the Israeli-founded insurtech that combines cyber insurance with cybersecurity services, for an enterprise value of $575 million, in a deal that highlights the insurance industry's growing push to move from paying for cyber losses to actively preventing them.
The German insurance giant said the definitive agreement has been signed and that the transaction is expected to close in the first quarter of 2027, subject to regulatory approvals and other customary conditions.
At-Bay, which primarily serves small and medium-sized businesses in the United States, will become part of HSB, Munich Re's technology-focused and cyber-oriented insurance business. HSB has been a strategic partner of At-Bay since its founding in 2017 and has supported the company's growth into one of the 10 largest cyber insurers in the United States.
At-Bay has gross written premiums of $278 million and currently employs approximately 280 people in the United States and Israel.
The acquisition marks a significant change in ownership for a company that was valued at $1.35 billion in its most recent funding round in 2021. At-Bay has raised $276 million since its founding.
The company was established in 2016 by Rotem Iram, Roman Itskovich, Etai Hochman and Tilly Kalisky. Its business model was built around combining insurance with technology designed to identify and reduce cyber risk.
Rather than simply providing coverage against the financial consequences of a cyberattack, At-Bay's platform continuously monitors an insured company's cyber exposure throughout the life of its policy. The company uses the resulting data both to help reduce customers' risk and to improve its underwriting.
That approach is increasingly attractive to insurers as cyber threats become more difficult for small businesses to manage. Smaller companies often lack the cybersecurity resources and expertise available to large enterprises, while facing many of the same threats.
Munich Re said the acquisition is intended to strengthen its position in a cyber insurance market that is evolving from standalone coverage toward integrated platforms combining insurance and continuously managed cybersecurity.
"Joining Munich Re will accelerate At-Bay's mission to close the cybersecurity protection gap for the 90% of businesses being left behind," Iram said. He described At-Bay's model as combining cyber insurance and cybersecurity into an integrated cyber risk solution.
Jeffrey O'Shaughnessy, president and CEO of HSB Group, said the combination would connect insurance, cybersecurity and claims into what he described as a continuous risk-management model.
The deal comes after a difficult period for At-Bay and the broader insurtech market. The company faced changes in the insurance market and rising interest rates in recent years and laid off dozens of employees, including a significant portion of its development operation in Israel.
The acquisition nevertheless gives Munich Re control of a company that has established a significant position in the U.S. cyber insurance market and provides a technology platform that can be integrated with the insurer's broader operations.
The $575 million enterprise value is also a notable reset from At-Bay's previous private-market valuation of $1.35 billion. The difference reflects the changing conditions in both technology and insurance markets since the company's 2021 funding round.
In March 2025, ERGO, part of the Munich Re group, announced the acquisition of the remaining 71% of Israeli-founded Next Insurance for approximately $2.6 billion, making the company fully owned by ERGO. Munich Re and ERGO had invested in Next since 2017 and previously held approximately 29% of the company. The At-Bay deal therefore marks Munich Re's second major acquisition of an Israeli insurance technology company and further strengthens the country's role as an important technology hub for the German insurance giant.
