What will firm do with $147 million boost?

According to its corporate literature, Branch launched in 2019 “…with a focus on leveraging the power of community to make insurance more affordable and has already helped members save an annual average of $548.” Company officials said that commitment has only heightened amid inflation at a 40-year high, as instant bundled savings are offered to consumers in every state. With the equity financing round, Branch is now poised to accelerate its national rollout while scaling its differentiated distribution strategy which includes direct, agency and embedded channels.

“Consumers are frustrated by escalating insurance costs resulting from antiquated business models and complex processes,” said Lekas, who is a co-founder of the company. “We believe that by reintroducing the power of community through data and technology, we can lower the cost of insurance while restoring it to its original intent: a force for communal good.”

The equity financing comes on the heels of an expansion into nine new states already in 2022, making Branch’s insurance available in 28 states. Branch has grown its annualized written premium 1,300% year over year in the last 12 months officials said. In addition to its geographic growth, Branch’s embedded insurance partner ecosystem continues to expand – it has already partnered with key industry players across the mortgage, auto, and home security industries including Homepoint, OpenRoad Lending, and SimpliSafe to make it more convenient for consumers to save on insurance.

Added David Seider, principal at Weatherford Capital: “For too long, the insurance industry has been plagued by an overly expensive approach to customer acquisition, driving up the price of insurance. Branch’s model is helping to ensure insurance is accessible for all. We are excited about this partnership and look forward to seeing Branch quickly and efficiently roll out nationwide affordable, high-quality insurance that all Americans deserve.”