American Financial Group (AFG) recently acquired Verikai Inc., a machine learning and artificial intelligence company that uses a risk forecasting tool to assess insurance risk.

AFG said it paid approximately $120 million in cash at closing.

California-based Verikai will continue to be led by President and CEO Jeff Chen.

Verikai, founded in 2018, leverages alternative data and machine learning, primarily focusing on underwriting efficiency by providing insurance companies with risk reports to optimize the underwriting process.

AFG CEO Carl H. Lindner III said in a press release that the company is confident that artificial intelligence and machine learning will continue to have a significant impact on the insurance industry globally. future, and the company views Verikai as “a thoughtful and effective leader in the use of these technologies.

He said the Ohio-based AFG has had success with several strategic insurtech relationships. “While we don’t often invest directly in insurtech entities, we found Verikai to be an exceptional opportunity,” he added.

Verikai will continue to operate as a stand-alone company to serve its insurance customers.

AFG is engaged in specialty property and casualty insurance for businesses through the operations of Great American Insurance Group. Great American Insurance Group will also benefit from Verikai’s risk forecasting tool and Marketplace platform as it enters the medical stop loss business, focusing primarily on small risks and underserved risks, a said the company.

Source: American Financial Group

Topics
InsurTech Data Driven Mergers