Munich Re has agreed to acquire At-Bay, the U.S. cyber insurtech, in one of the largest specialty-insurance deals announced this year. Munich Re Group today announced that it has agreed to acquire At-Bay, Inc., a U.S.-based insurtech company that provides cyber insurance and proactive cybersecurity solutions for small and medium-sized enterprises (SME). The transaction was concluded at an enterprise value of $575 million, underscoring how much strategic weight major reinsurers now place on cyber risk technology built for smaller policyholders.
A $575 million bet on SME cyber risk
Under the terms disclosed by both companies, closing of the transaction is subject to customary conditions, including the required regulatory approvals, and is expected in the first quarter of 2027. Munich Re detailed the terms of the agreement in a media release confirming the transaction, framing At-Bay as a foundational piece of its cyber strategy rather than a bolt-on acquisition.
The price tag underscores At-Bay’s standing in a notoriously difficult niche: underwriting cyber risk for companies too small to run in-house security operations, yet exposed to the same ransomware and business-email-compromise threats hitting larger corporates. Observers have long flagged SME cyber as one of the fastest-growing and least-served segments of the commercial insurance market.
HSB folds At-Bay into its cyber specialty arm
The At-Bay business will be overseen by HSB, the technology-forward and cyber-focused arm of the Munich Re Specialty portfolio of insurance solutions. The pairing is not new: a main strategic partner since At-Bay’s founding in 2017, HSB has supported At-Bay’s development into a top-10 U.S. cyber insurer with gross written premiums totalling USD 278m, as at 31.12.2025, based on US GAAP; plus cyber fee service revenues of USD 23m. That premium base, built up over eight years of collaboration, gives Munich Re a fully underwritten book rather than an early-stage technology bet.
At-Bay primarily serves the SME market in the U.S., focusing on organizations that face increasing cyber risk but often lack the resources and expertise of large enterprises to manage cybersecurity effectively. The company pairs policy issuance with continuous security monitoring, an approach the industry calls InsurSec, aimed at reducing claims frequency rather than simply pricing for it after the fact. At-Bay currently employs approximately 280 employees in the U.S. and Israel.
Executives frame the deal as a platform play
Munich Re executives were quick to cast the acquisition as more than a defensive move against fintech-style disruptors. Mike Kerner, Member of the Board of Management, Munich Re, said At-Bay’s market position and unique capabilities make it a perfect addition to our specialty insurance portfolio and an essential component of our future cyber offering. He added that the business is expected to evolve into a strong earnings growth driver over time, according to comments accompanying the announcement.
On the HSB side, Jeffrey O’Shaughnessy, president and chief executive officer of HSB Group, argued that HSB and At-Bay are a logical match, each with a history and vision of risk prevention, mitigation and market-leading cyber risk solutions. He went further, predicting that the combination of At-Bay’s market-leading cyber capabilities and HSB’s intense cyber and underwriting expertise will significantly enhance our cyber offering and accelerate our speed to innovate in a market moving towards vertically integrated insurer-security platforms — language that echoes a broader industry shift toward bundling coverage with active risk-prevention tools rather than selling indemnity alone.
At-Bay’s founders see a path to scale
For At-Bay, the deal is being pitched internally as an accelerant rather than an exit. Rotem Iram, CEO and co-founder of At-Bay, said joining Munich Re will accelerate At-Bay’s mission to close the cybersecurity protection gap for the 90% of businesses being left behind. Iram also positioned the company’s technology as distinct from traditional underwriting: At-Bay is a market leader in InsurSec combining cyber insurance and cyber security into a complete and integrated cyber risk solution, he said, adding that with Munich Re, we gain the scale and reach to better address the evolving needs of every small business.
The rationale echoes the message Munich Re sent investors during its most recent half-year financial results, when specialty lines were flagged as a growth priority, and aligns with a review of the U.S. cyber insurance market pointing to persistent capacity gaps for smaller policyholders. Munich Re is not alone in this approach: a similar insurtech acquisition earlier this year showed larger insurance groups increasingly willing to buy, rather than build, cyber and commercial-lines distribution technology.
Advisors and the road to closing
Ardea Partners LP acted as exclusive financial advisor and Cooley LLP served as legal advisor to At-Bay, while Sullivan & Cromwell LLP acted as legal advisor to Munich Re on the transaction. Both advisory rosters point to a heavily negotiated process typical of specialty-insurance M&A, where regulatory, tax and reinsurance-treaty considerations extend timelines well beyond a simple stock purchase.
Regulatory sign-off remains the main variable. The closing of the transaction is subject to customary conditions, including the required regulatory approvals, and is expected in the first quarter of 2027, giving Munich Re roughly six months to secure the necessary clearances across the jurisdictions where At-Bay and HSB operate. Until then, At-Bay is expected to continue underwriting under its existing licenses, with integration planning for the InsurSec platform likely to run in parallel.
