Munich Re to Acquire Israeli Cyber Insurer At-Bay for $575 Million in Strategic Bet on Integrated Risk

Munich Re to Acquire Israeli Cyber Insurer At-Bay for $575 Million in Strategic Bet on Integrated Risk German reinsurance giant Munich Re Group announced this week an agreement to acquire 100% of the shares of Israeli cyber insurance company At-Bay at an Enterprise Value of $575 million. The transaction, subject to customary conditions and regulatory approvals, is expected to close during the first quarter of 2027. The deal marks Munich Re's second acquisition in Israel, following its $2.6 billion purchase of Next Insurance in March 2025, and signals a deepening commitment to the country's insurtech and cybersecurity ecosystem.

A Strategic Acquisition in the Cyber Insurance Market

Munich Re, founded in 1880 and one of the world's leading providers of reinsurance, primary insurance and insurance-related risk solutions, is making a calculated move to strengthen its position in the rapidly evolving cyber market. The group, which consists of reinsurance and ERGO business segments plus asset manager MEAG, has been developing covers for new risks such as rocket launches, renewable energies, cyber risks and AI. The acquisition of At-Bay is a strategic move to strengthen Munich Re's and HSB's position as a leader in the cyber market by combining insurance with proactive risk mitigation and a state-of-the-art technology platform. At-Bay will be overseen by Hartford Steam Boiler (HSB), part of Munich Re's Global Specialty Insurance business and Munich Re Specialty portfolio. HSB is the technology-forward and cyber-focused arm of the group and has been a main strategic partner since At-Bay's founding, supporting the Israeli company's development into a top-10 U.S. cyber insurer. The two founders of the Israeli company are expected to join the acquiring company's management.

At-Bay's Journey from Tel Aviv to Top-Ten U.S. Cyber Insurer

At-Bay, founded in 2016 by Rotem Iram (CEO) and Roman Itskovich (CRO), developed a platform combining insurance coverage with active cybersecurity solutions, a concept the company calls 'InsurSec' — integrated cyber risk solutions. The company focuses primarily on the small and medium-sized business (SME) market in the US, providing protection to over 35,000 insured companies in Israel and the US. At-Bay currently employs approximately 280 employees in the U.S. and Israel, with gross written premiums totaling $278 million. The company operates a small insurtech cybersecurity development center in Israel, with most operations in the US, where it markets cybersecurity and data security insurance products. Through its unified security platform, At-Bay continuously identifies, monitors and reduces insured cyber risk across the full policy lifecycle, driving data insights to improve underwriting and security innovation. This approach has positioned the company as a market leader in the InsurSec space, combining cyber insurance and cyber security into a complete and integrated cyber risk solution.

The Valuation Story: A Tale of Two Markets

The $575 million price tag represents a significant markdown from At-Bay's most recent financing round in 2021, when the company raised money at a valuation of $1.36 billion, according to PitchBook data cited by Globes. The company has raised nearly $300 million to date from Israeli and US investors, not all of whom will see a return on their investment. Later investors who entered at the $1.3 billion valuation at the height of the 2021 tech bubble — including Israeli funds ION, Glilot, and Tel Aviv-listed Big Tech 50 partnership — are expected to write down their investment. This reflects the broader correction in insurtech and tech valuations that has swept through the industry since the peak of the bubble. However, the deal is not a loss for everyone. In 2020, Israeli growth fund Qumra Capital led an investment round at a valuation of $334 million, and it will record a reasonable return on the investment that stretched over six years. The biggest beneficiaries are the original investors who have been involved since 2017, including Shlomo Kramer (one of the company's seed investors), Lightspeed, Microsoft and Munich Re itself, which led an investment round in 2020 at a valuation of $134 million.

Munich Re's Growing Israel Footprint

This acquisition is Munich Re's second in Israel, following its acquisition of Next Insurance in March 2025 for $2.6 billion. Next Insurance had raised $1.1 billion and reached a record valuation of $4 billion before the acquisition, and even then the buyer benefited from the decline in insurtech valuations. The pattern is clear: Munich Re is using market corrections to acquire high-quality Israeli insurtech companies at more favorable prices. The German group's growing presence in Israel reflects the country's position as a global hub for cybersecurity and insurance technology. Israeli startups have consistently punched above their weight in these sectors, combining deep technical expertise with an understanding of the security challenges facing businesses worldwide. The acquisition of At-Bay, with its focus on SMEs, aligns with Munich Re's strategy to address the needs of smaller businesses that often lack the resources of large enterprises to manage cybersecurity effectively.

Leadership Perspectives on the Deal

Rotem Iram, founder and CEO of At-Bay, expressed enthusiasm about the acquisition, stating: "Joining Munich Re will accelerate At-Bay's mission to close the cybersecurity protection gap for the 90% of businesses being left behind. At-Bay is a market leader in InsurSec combining cyber insurance and cyber security into a complete and integrated cyber risk solution. With Munich Re, we gain the scale and reach to better address the evolving needs of every small business." Iram also emphasized the connection with Munich Re, noting that "the connection with Munich Re will accelerate our mission... Together, we will receive the financial backing and global accessibility that will allow us to bring our solutions to more businesses." Mike Kerner, Member of the Board of Management at Munich Re, highlighted the strategic importance of the deal: "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. We expect the business to evolve into a strong earnings growth driver over time." Jeffrey O'Shaughnessy, president and CEO of HSB Group, added: "HSB and At-Bay are a logical match, each with a history and vision of risk prevention, mitigation and market-leading cyber risk solutions. 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."

The Growing Threat Landscape for SMEs

The acquisition comes at a time when cyber threats are escalating, particularly for small and medium-sized businesses. Iram told Globes last year: "Cyber insurance today covers almost any type of computer failure - whether caused by cyber gangs or by employee negligence... Cyber gangs have turned ransomware attacks into a huge industry of extortion under the auspices of Bitcoin... today the most effective way to make money is to encrypt the computer network or servers of companies, threaten to release information and demand a ransom of millions of dollars." This reality underscores the importance of At-Bay's integrated approach, which combines insurance coverage with active cybersecurity measures. By continuously identifying, monitoring and reducing insured cyber risk across the full policy lifecycle, At-Bay aims to prevent attacks before they happen, rather than simply compensating for losses after the fact.

Implications for the Israeli Tech Ecosystem

The deal sends several signals to the Israeli tech ecosystem. First, it demonstrates that Israeli companies in the cybersecurity and insurtech sectors continue to attract strategic acquirers, even in a challenging valuation environment. Second, it shows that large global players like Munich Re view Israeli technology as essential to their future growth strategies. The acquisition also highlights the importance of patient capital in the Israeli startup ecosystem. While later investors at the peak of the 2021 bubble may face write-downs, early investors who backed At-Bay from its founding are seeing meaningful returns. This is a reminder that venture capital is a long-term game, and that timing of entry matters significantly.

What This Means for At-Bay's Future

For At-Bay, joining the Munich Re family provides access to significant financial resources and global distribution channels. The company will be able to leverage Munich Re's scale and reach to bring its InsurSec solutions to more businesses, particularly in the SME segment where the cybersecurity protection gap is most acute. The integration with HSB, which has been At-Bay's main strategic partner since its founding, should be relatively smooth given the existing relationship. HSB's intense cyber and underwriting expertise, combined with At-Bay's market-leading cyber capabilities, positions the combined entity to accelerate innovation in a market moving towards vertically integrated insurer-security platforms.

Looking Ahead to Q1 2027

The transaction is expected to close during the first quarter of 2027, pending customary conditions and regulatory approvals. Until then, At-Bay will continue to operate as an independent company, serving its 35,000 insured companies in Israel and the US. For the Israeli tech sector, this deal is another validation of the country's strength in cybersecurity and insurance technology. It also raises questions about the future of other Israeli insurtech companies that raised at high valuations during the 2021 bubble and may now be facing similar pressure to find strategic buyers.

Conclusion: A New Chapter for Israeli Insurtech

The acquisition of At-Bay by Munich Re marks a new chapter for Israeli insurtech, demonstrating that strategic acquirers are willing to invest in Israeli technology even as valuations have corrected from their 2021 peaks. For At-Bay's founders, employees and early investors, the deal represents a successful exit and a vote of confidence in their vision. As cyber threats continue to evolve, the demand for integrated solutions like At-Bay's will only increase — and Israeli companies are well-positioned to meet that demand.

This article was produced with AI-assisted research and editorial support. Sources: The Jerusalem Post, Globes, Munich Re Group, Carrier Management. By Hannah Berg, Staff Writer