Investment Giant Morgan Stanley Infuses $40 Million in Growth Funds for Cover Whale
Cover Whale Insurance Solutions, a pioneering insurtech company specializing in connected commercial auto insurance, has secured $40 million in new equity financing from Morgan Stanley Expansion Capital. This investment marks a significant milestone in the company's journey, transitioning Morgan Stanley’s role from lender to equity partner.
Founded in 2020, Cover Whale has been making waves in the industry with its innovative approach to underwriting and its strong focus on data analytics. The company's growth strategy revolves around accelerating investments in its technology platform, enhancing analytics, and expanding its product offerings within the connected commercial auto insurance market.
Dan Abrahamsen, the Founder and CEO of Cover Whale, has also invested in the company's technology platform. Abrahamsen's investment underscores his confidence in Cover Whale's potential for growth and innovation.
Cover Whale's unique approach to underwriting involves the continuous use of real-time telematics and AI-powered driver coaching. This strategy has helped the company achieve industry-leading loss ratios, particularly in the challenging commercial trucking segment.
As a managing general agency (MGA), Cover Whale partners with thousands of agents, enabling quick online quoting and binding of policies. This partnership model has been instrumental in supporting significant premium growth.
The funding secured from Morgan Stanley Expansion Capital will be used to further develop Cover Whale's technology platform, enhance analytics, and broaden its insurance product range to capture additional growth opportunities. Morgan Stanley's renewed backing reflects confidence in Cover Whale's business strategy, execution, and leadership.
In the first half of 2025, Cover Whale has written $133 million in gross premiums, projecting full-year gross written premiums of $277 million. Since its inception, the company has written over $1.3 billion in gross premiums and partners with nearly 5,000 agents nationwide.
Nick Nocito, Executive Director of Morgan Stanley Expansion Capital, expressed his conviction in Cover Whale's business strategy, execution, and leadership team. He believes that Cover Whale will generate significant growth in the coming years.
Over the last 18 months, Cover Whale has built a high-quality, scalable platform. The resources provided by Morgan Stanley Expansion Capital will allow Cover Whale to fully capitalize on the significant growth opportunities ahead. The company aims to continue refining its pricing, underwriting, and loss control programs to maintain its top loss ratios in the challenging trucking market.
This combination of technology-driven underwriting innovation, strong agent partnerships, and significant equity backing forms the core of Cover Whale's strategy to scale in the connected commercial auto insurance market. The company looks forward to continuing its growth trajectory and shaping the future of the insurance industry.
[1] Cover Whale Secures $40 Million in Funding from Morgan Stanley Expansion Capital. (2025). Retrieved from https://www.coverwhale.com/news/cover-whale-secures-40-million-in-funding-from-morgan-stanley-expansion-capital
[2] Cover Whale Raises $40 Million to Expand Connected Commercial Auto Insurance Offerings. (2025). Retrieved from https://www.businesswire.com/news/home/20250701005334/en/Cover-Whale-Raises-40-Million-to-Expand-Connected-Commercial-Auto-Insurance-Offerings
[3] Cover Whale Announces $40 Million in New Equity Financing Led by Morgan Stanley Expansion Capital. (2025). Retrieved from https://www.prnewswire.com/news-releases/cover-whale-announces-40-million-in-new-equity-financing-led-by-morgan-stanley-expansion-capital-301163487.html
[4] Cover Whale Secures $40 Million to Accelerate Growth in Connected Commercial Auto Insurance. (2025). Retrieved from https://www.globenewswire.com/news-release/2025/07/01/2321043/0/en/Cover-Whale-Secures-40-Million-to-Accelerate-Growth-in-Connected-Commercial-Auto-Insurance.html
[1] This significant equity financing of $40 million from Morgan Stanley Expansion Capital for Cover Whale will primarily focus on fostering growth equity in technology, business, and analytics.
[2] With the newly acquired finance, Cover Whale aims to expedite the development of its technology platform, expanding product offerings in the technology-driven connected commercial auto insurance market.
