What will the company do with a $147 million boost?
According to its corporate documentation, Branch launched in 2019 “…with a focus on harnessing the power of the community to make insurance more affordable and has already helped its members save an average of $548 per year”. Company officials said the commitment has only intensified amid inflation at its highest level in 40 years as instant bundled savings are offered to consumers in every state. With the equity funding round, Branch is now poised to accelerate its national rollout while expanding its differentiated distribution strategy that includes direct, agency and integrated channels.
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“Consumers are frustrated with escalating insurance costs resulting from outdated business models and complex processes,” said Lekas, co-founder of the company. “We believe that by reintroducing the power of community through data and technology, we can reduce the cost of insurance while returning it to its original purpose: a force for the common good.”
The equity financing follows an expansion into nine new states already in 2022, making Branch’s insurance available in 28 states. The branch increased its annualized written premium by 1,300% year-over-year over the past 12 months, officials said. In addition to its geographic growth, Branch’s ecosystem of integrated insurance partners continues to grow – it has already partnered with key industry players in the mortgage, auto and home security, including Homepoint, OpenRoad Lending and SimpliSafe to make it more convenient for consumers to save on insurance.
David Seider, Principal of Weatherford Capital, added, “For too long the insurance industry has been plagued by an overly expensive approach to customer acquisition, which has driven up the price of insurance. Branch’s model helps ensure that insurance is accessible to everyone. We are thrilled with this partnership and look forward to seeing Branch quickly and efficiently roll out affordable, high-quality nationwide insurance that all Americans deserve.