AM Best Upgrades Next Insurance US Company Credit Ratings to A+ and "aa"

AM Best has upgraded Next Insurance US Company's Financial Strength Rating to A+ (Superior) from A- (Excellent) and Long-Term Issuer Credit Rating to "aa" (Superior) from "a-" (Excellent). The upgrade reflects the company's inclusion as a member of Munich Reinsurance Company, a lead rating unit with a strongest balance sheet strength assessment, and its strong operating performance, favorable business profile, and strong enterprise risk management. The outlook assigned to these ratings is stable.

Penn-America Group, a subsidiary of Global Indemnity Group, LLC (GBLI), has acquired US-Israeli AI insurance agency Sayata for an undisclosed amount in cash and shares. The acquisition is a strategic move aimed at digitizing commercial insurance distribution and underwriting, leveraging AI for dynamic pricing and risk assessment. Sayata, founded by Asaf Lifshitz, Iddan Golomb, and Avishay Maya, generates annual recurring revenue of $10 million and overall annual revenue of $60-70 million.

The acquisition follows Munich Re's acquisition of Next Insurance for $2.6 billion, another notable InsurTech deal in 2025. By integrating Sayata's AI-driven tools, GBLI aims to streamline policy customization, reduce time-to-market for new products, and enhance data-driven risk assessments. This move positions GBLI to capture a larger share of the Excess & Surplus (E&S) market, which is expected to grow at 5.47% annually through 2032 [1].

The global commercial insurance market is expanding rapidly, driven by rising cyber threats, climate-related risks, and the globalization of supply chains. By 2033, the market is expected to reach $1.684 trillion, with a 6.2% CAGR [2]. Traditional insurers remain constrained by legacy systems, creating an opportunity for InsurTech-enabled players like GBLI. Sayata's technology bridges this gap by enabling real-time data analytics and dynamic pricing models, which are critical for addressing niche risks.

GBLI's acquisition of Sayata is not merely a technological upgrade but a strategic repositioning in a fragmented market. By combining Sayata's digital agility with PAU's established underwriting expertise, GBLI can scale its distribution network while maintaining profitability. Asaf Lifshitz, CEO of Sayata, emphasized that the partnership will "expand reach while maintaining best-in-the-industry economics for customers" [1], a claim supported by the platform's ability to reduce operational costs through automation.

Moreover, the integration of AI into agency operations allows GBLI to enhance customer relationships through personalized service. This aligns with broader industry shifts toward customer-centric models, as highlighted in McKinsey's 2025 Global Insurance Report [4].

While the acquisition’s financial terms remain undisclosed, the strategic and operational synergies are clear. GBLI’s move to digitize its distribution and underwriting processes positions it to capture a larger share of the E&S market, which is expected to outperform traditional segments in the coming decade. For investors, this acquisition signals a commitment to innovation and long-term growth in a sector ripe for disruption.

References:
[1] Penn-America Underwriters Acquires Sayata, an AI-Enabled Digital Distribution Marketplace for Commercial Insurance [https://www.businesswire.com/news/home/20250902740057/en/Penn-America-Underwriters-Acquires-Sayata-an-AI-Enabled-Digital-Distribution-Marketplace-for-Commercial-Insurance]
[2] Commercial Insurance Market Size, Trends & Report 2033 [https://www.imarcgroup.com/commercial-insurance-market]
[4] Global Insurance Report 2025: The pursuit of growth [https://www.mckinsey.com/industries/financial-services/our-insights/global-insurance-report]