Munich Re Group will buy US insurtech At-Bay, which provides cyber insurance and security solutions for SMEs, for $575 million ($807 million).

At-Bay will be overseen by Hartford Steam Boiler (HSB), part of Munich Re’s global specialty insurance business.

The reinsurer says the acquisition strengthens its position as a leader in the cyber market by combining insurance with risk mitigation and a cutting-edge tech platform.

It also positions the company as the cyber market rapidly evolves from standalone coverage towards integrated, continuously managed risk mitigation platforms.

The purchase, subject to regulatory approvals, is expected to close in the first quarter of next year.

HSB – the “technology-forward and cyber-focused” arm of the Munich Re Specialty portfolio – has been a strategic partner since At-Bay’s founding in 2017.

Its president and CEO Jeffrey O’Shaughnessy said: “HSB and At-Bay are a logical match, each with a history and vision of risk prevention, mitigation and market-leading cyber risk solutions.

“The combination of At-Bay’s market-leading cyber capabilities and HSB’s intense cyber and underwriting expertise will significantly enhance our cyber offering and accelerate our speed to innovate in a market moving towards vertically integrated insurer-security platforms.”