Investors champion Branch’s ability to make insurance frictionless, accessible, and affordable with a $147 million investment
Investment closes as Branch reports 1300% growth YoY in annualized written premium and a 400% increase in employee growth in the last year
Branch announced a $147 million Series C funding led by Weatherford Capital. Branch is a full-stack insurance company that uses data, technology, and automation to make home and auto insurance completely frictionless. The raise brings Branch’s valuation to $1.05 billion and will continue to support the company’s mission of making insurance less expensive so more people can be insured. Participating new and existing investors include Acrew, AmFam Ventures, Anthemis, Gaingels, Greycroft, HSCM Ventures, Narya, SignalFire, and Tower IV.
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Branch launched in 2019 with a focus on leveraging the power of community to make insurance more affordable and has already helped members save an annual average of $548. Now, with inflation at a 40-year high, Branch remains committed to bringing its instant bundled savings to consumers in every state. The equity financing round positions Branch to accelerate its national rollout while scaling its differentiated distribution strategy which includes direct, agency, and embedded channels.
“Consumers are frustrated by escalating insurance costs resulting from antiquated business models and complex processes,” said Steve Lekas, Branch Cofounder and CEO. “We believe that by reintroducing the power of community through data and technology, we can lower the cost of insurance while restoring it to its original intent: a force for communal good.”
The announcement comes on the heels of an expansion into nine new states already in 2022, making Branch’s frictionless insurance available in 28 states. Branch has grown its annualized written premium 1300% YoY in the last 12 months. In addition to its unprecedented geographic growth, Branch’s embedded insurance partner ecosystem continues to blossom as it offers instant insurance in moments consumers need it most. Branch has already partnered with key industry players across the mortgage, auto, and home security industries including Homepoint®, OpenRoad Lending®, and SimpliSafe® to make it even more convenient for consumers to save on insurance.
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“For too long, the insurance industry has been plagued by an overly expensive approach to customer acquisition, driving up the price of insurance. Branch’s model is helping to ensure insurance is accessible for all,” said David Seider, Principal at Weatherford Capital. “We are excited about this partnership and look forward to seeing Branch quickly and efficiently roll out nation-wide affordable, high-quality insurance that all Americans deserve.”
Branch is a Public Benefits Corporation and manages a reciprocal exchange, an organization in which the policyholders are the actual owners of the policy premiums. The structure is built to align incentives and provide members with as much savings as possible. Branch further provides its members with access to a number of community-based products – which help members save even more by leveraging the power of their networks.
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