Insurtech firm Bright Health scored a hefty $750 million funding from Cigna Ventures, the enterprise capital arm of insurer Cigna, and longtime investor New Enterprise Associates.
The information comes a couple of month after the newly public firm introduced monetary outcomes from a “challenging” third quarter, the place it posted a GAAP net loss of $296.7 million. However Vibrant reaffirmed its 2021 guidance of $4.1 to $4.2 billion in income earlier this week, and mentioned it anticipated income of greater than $6 billion in 2022.
WHAT IT DOES
Vibrant Well being Group contains Vibrant HealthCare, which sells particular person and household medical insurance protection and Medicare Benefit plans, and NeueHealth, which runs clinics and helps companions transfer to value-based preparations.
The insurtech was founded in 2016 with a concentrate on a consumer-focused and tech-enabled insurance coverage expertise, meaning to type unique partnerships with native well being techniques in every market.
“The funding from Cigna and NEA signifies continued conviction in Vibrant Well being Group’s alignment mannequin,” Mike Mikan, president and CEO of Vibrant Well being Group, mentioned in a press release. “We’re excited concerning the partnership alternatives for each Vibrant Well being Group and Cigna to carry inexpensive, customized healthcare to all customers.”
WHAT IT’S FOR
The financing, which is predicted to shut in January, will help continued progress, based on Vibrant Well being.
Beneath the phrases of the funding, Cigna and NEA will purchase $750 million of convertible perpetual most popular inventory at a value of $1,000 per share. The inventory features a 5% dividend, which could be transformed into widespread inventory shares at a conversion value of about $4.55 per share.
“Cigna Ventures is dedicated to bettering and increasing entry to high quality, inexpensive healthcare, and our funding in Vibrant Well being Group aligns with our imaginative and prescient,” Tom Richards, head of Cigna Ventures, mentioned in a press release. “We search to be companions of selection and we stay up for exploring new ways in which NeueHealth and Evernorth can probably present providers to one another’s prospects and shoppers.”
Vibrant Well being hit the New York Stock Exchange in June. Earlier than its IPO, the corporate had a number of giant fundraising rounds, together with a $500 million Series E in September 2020 and a $635 million Series D in December 2019.
In April this 12 months, it acquired telehealth platform Zipnosis.