Israeli Cyber Insurance Firm At-Bay Sold to Munich Re for $575 Million Amid Market Shift

At-Bay, an Israeli-founded cyber insurance company, is being acquired by German insurance giant Munich Re Group for $575 million, a significant deal expected to close in 2027 pending regulatory approval. Founded in 2016 by CEO Rotem Iram and partners, At-Bay offers cyber insurance combined with risk monitoring and security analytics, aiming to reduce risks before cyberattacks occur. The company has grown substantially, now generating nearly six times the insurance premiums compared to 2021, with $280 million in premiums and $30 million in cyber product revenues annually.

Despite the sale price being lower than the $1.35 billion valuation during the 2021 unicorn bubble, Iram emphasized that the current market is more realistic and focused on cash flow. He noted that all investors and employees profited from the deal, with $300 million raised in funding so far and a workforce of 280 employees in the US and Israel. At-Bay targets small and medium US businesses lacking extensive cybersecurity resources, insuring over 35,000 companies through its unified security platform.

Munich Re, a long-time investor and partner, will integrate At-Bay into its HSB subsidiary, specializing in technology-driven insurance solutions. Munich Re’s Global Specialty Insurance head Mike Kerner highlighted At-Bay’s strategic positioning and growth potential, while HSB CEO Jeffrey O’Shaughnessy praised the synergy between the companies’ cyber expertise. Iram described the acquisition as a major success, especially given the challenging market conditions that have caused many growth companies to fail, stressing At-Bay’s conservative capital approach and market leadership.

Other investors include Qumra Capital, Microsoft’s M-12 fund, Lightspeed, Acrew Capital, Khosla Ventures, and others. The founders and most employees will remain with the company post-acquisition, continuing to build At-Bay as a full business unit within Munich Re’s portfolio.