American Financial Group (AFG) recently acquired Verikai Inc., a machine learning and artificial intelligence company that utilizes a predictive risk tool for assessing 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, focusing primarily on underwriting efficiency by providing insurance companies with risk reports to optimize the underwriting process.
AFG CEO Carl H. Lindner III said in a company press release that the company believes artificial intelligence and machine learning will continue to have a significant impact on the insurance industry in the future, and the company sees Verikai as “a thoughtful and effective leader in the use of these technologies.”
He said Ohio-based AFG has had success with several strategic insurtech relationships. “Although we don’t often invest directly in insurtech entities, we found Verikai to be an outstanding opportunity,” he added.
Verikai will continue to operate as a standalone company to serve its insurance clients.
AFG is engaged in specialty property/casualty insurance for businesses through the operations of Great American Insurance Group. Great American Insurance Group will also benefit from Verikai’s predictive risk tool and Marketplace platform as it enters the medical stop loss business, with a primary focus on small and underserved risks, the company said.
Source: American Financial Group
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