American Financial Group announced the acquisition of Verikai, Inc. (“Verikai”), a machine learning and artificial intelligence company that utilizes a predictive risk tool for assessing insurance risk, effective December 2021. Verikai will continue to be led by its President and CEO, Jeff Chen. AFG paid approximately $120 million in cash at closing.
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Carl H. Lindner III, AFG’s Co-CEO, stated: “We are thrilled to welcome the Verikai team to AFG. We believe that artificial intelligence and machine learning will continue to have a significant impact on the insurance industry and see Verikai as a thoughtful and effective leader in the use of these technologies. We have been very selective and intentional with our investments in the insurtech space and have enjoyed great success with several strategic relationships. Although we don’t often invest directly in insurtech entities, we found Verikai to be an outstanding opportunity. Verikai will continue to operate as a stand-alone company to serve its insurance clients. We are also pleased that Great American Insurance Group will benefit from Verikai’s predictive risk tool and unique Marketplace solution as it enters the medical stop loss business, with a primary focus on small and underserved risks.”
Jeff Chen, Verikai’s President and CEO, stated: “My team and I are excited to join AFG. The Company’s financial strength and support will provide the opportunity to grow our business by enhancing our ability to provide a variety of compelling products and innovative capabilities as a stand-alone insurance technology company. We look forward to enriching our offerings for our clients and serving as a leader in the predictive risk space. AFG’s culture and the value it places on entrepreneurial spirit are a perfect fit for Verikai’s vision and ambition.”
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