Farmers Insurance has taken an equity stake in Jetty, after it last year stepped in to replace Munich Re as a capacity provider for the InsurTech.
In a statement on Tuesday, Jetty said the investment would be used to enhance its existing products as well as to support the development of new fintech solutions.
Farmers, a subsidiary of Zurich Insurance, will join the InsurTech’s existing panel of investors, which include Ribbit Capital, Valar and Khosla Ventures. No further details of the stake sale size were disclosed.
It comes after Jetty last year secured backing from Farmers, following Munich Re’s decision in April to suspend the capacity it provides to the InsurTech.
Jetty offers low limit credit policies that allow tenants to buy policies without having to pay an upfront deposit. The MGA also provides renters' insurance.
Sources speaking to Inside P&C at the time said the company had received claims tied to the pandemic-induced economic downturn, as struggling tenants have stopped paying rent.
Commenting on the fresh investment, Jetty co-founder and CEO Mike Rudoy said: “This new equity investment is a real vote of confidence in both our existing business and our vision for the future."
"We've had a very positive and collaborative relationship with the Farmers and Toggle teams since we announced our reinsurance deal, and this equity investment will further deepen our relationship,” he added.
Stephanie Lloyd, head of new ventures at Farmers and president of the carrier’s Toggle subsidiary, said: “We were initially drawn to Jetty by the strength of their brand and their innovate approach to fintech in the real estate vertical, and these initial perceptions have been borne out in the six months that we've worked together."
"Jetty has big and exciting plans for the future, and the investment will help the company reach its goals more quickly,” she added.
