Xempus, a European platform to sell and manage pension and life insurance policies, has raised $70m (£53.1m) in primary equity funding, bringing its total funding to date to $125m (£94.9m).
Xempus said it plans to use the funds to broaden its policy sale and management offering in Germany, add new product verticals to the platform, such as corporate health insurance and roll out its platform in additional European countries.
In Germany, more than 100,000 new policies are sold via the platform per year, connecting 18,000 insurance agents, 60,000 corporates and life insurers.
The Series D financing round was led by Goldman Sachs Asset Management. Existing investors, led by HPE Growth and Cinco Capital, also participated in the round.
Digitise insurance distribution
Christian Resch, managing director in the growth equity business within Goldman Sachs Asset Management, said the firm sees a tremendous opportunity to further digitise the pension and life insurance market.
“The global retirement funding gap is estimated to reach $400 trillion by 2050,” he added. “Platforms such as Xempus will play a critical role in reducing this gap by increasing consumer understanding, choice and transparency.”
Alexander Lippert, executive director in the growth equity business within Goldman Sachs Asset Management, said: “We have been following Xempus for some time and are delighted to partner with Tobias, Malte and the entire Xempus team to lead the Series D.
“We have been impressed by the company’s strong growth momentum and look forward to helping Xempus expand its offering even further.”
Tobias Wann, CEO of Xempus, said: “The management team and shareholders are excited that Goldman Sachs is joining us on our journey.
“This funding allows us to further accelerate our pace as we innovate and tech-enable the insurance market in Europe, delivering better value to insurers, agents, corporates and employees.”