Cover Whale Insurance Solutions, an insurtech focused on connected commercial auto insurance secured $40 million from Morgan Stanley Expansion Capital. This funding will enhance technology, analytics, and product development, driving increased profitability.
Founded in 2020, Cover Whale’s platform and algorithms enable agents to bind trucking policies online quickly, utilizing real-time data to underwrite policies during their term, resulting in top loss ratios in the challenging trucking market. This year, it has written $133 million gross premiums in the first half, aiming for $277 million annually.
Morgan Stanley’s initial investment was in May 2024 via structured debt.
KEY QUOTES:
“After years of rapid growth, 2024 marked a pivotal year for Cover Whale as we focused on re-building our foundation. We invested in our technology platform, built a high-performing service organization, and refined our pricing, underwriting and loss control programs. Morgan Stanley Expansion Capital’s transition from lender to equity partner is a gratifying affirmation of the tremendous progress made over the past few years, and their renewed backing gives us the resources to fully capitalize on the significant growth opportunities ahead.”
Dan Abrahamsen, Founder and CEO of Cover Whale
“Today’s growth equity investment reflects our conviction in Cover Whale’s business strategy, execution and leadership team. Over the last 18 months, the team has built a high-quality, scalable platform that we believe will generate significant growth in the coming years.”
Nick Nocito, Executive Director of Morgan Stanley Expansion Capital
