Property/casualty insurtechs raised $1.13 billion in the first quarter, the highest level since the third quarter of 2022, Gallagher Re said in a report released Wednesday.
Overall, the insurtech sector raised $1.3 billion in the quarter, the reinsurance business of Arthur J. Gallagher & Co. said in its InsurTech report.
The majority of investments, 61.2%, went to artificial intelligence-centered companies. Five reinsurance investors made three or more tech investments in the first quarter, Gallagher Re said.
The quarter also saw three “mega round” deals worth more than $100 million, which had not occurred since the fourth quarter of 2022. All three deals went to property/casualty insurtechs: Quantexa ($175 million), Openly ($123 million) and Instabase ($100 million).
The broader funding in the first quarter resulted in an increase in deal sizes, rising 42.1% from last year’s fourth quarter to $15.77 million.
The 43 deals in the first quarter were up from 26 in the prior quarter.
Geographically, the global insurtech deal share for the U.S. rose 8.8 percentage points in the first quarter to 58.8%, the highest since the third quarter of 2017.