JVP, TPG GP Solutions form $290M vehicle to scale Earnix ahead of IPO
JVP boosts Earnix via a TPG GP Solutions-led $290M vehicle; some funds go to the AI pricing unicorn. Insurers can expect faster moves in pricing, rating, and gen-AI features.
JVP Steps Up Backing for Earnix with New TPG-Backed Vehicle: What Insurance Leaders Should Know
Jerusalem Venture Partners (JVP) is increasing its investment in AI-focused insurance firm Earnix through a new investment vehicle formed with TPG. TPG GP Solutions is leading a $290 million investment into the vehicle and will hold a 30% stake in it. Part of the capital will be deployed into Earnix.
JVP remains the anchor shareholder in Earnix at 54%. Insight Partners holds 14%, and company management owns more than 20%. TPG GP will not be a direct investor in Earnix.
Deal Snapshot
- $290 million investment led by TPG GP Solutions into a new vehicle; some proceeds flow into Earnix and some were used to buy out former investors.
- Early investors realized a reported 8.7x return.
- Earnix is profitable with annual revenue above $100 million and is considered a unicorn (valuation above $1 billion).
- Customer base: 100+ large institutions, including AXA, Banco Santander, Munich Re, and Toyota Financial Services.
- Geography: Europe is the largest market; the U.S. now accounts for roughly 40% of revenue.
- M&A: Earnix acquired French generative AI firm Zelros in April.
Why This Matters for Insurers
More capital typically means faster product expansion and stronger enterprise delivery. Expect Earnix to push deeper into pricing, rating, and personalization at scale, and to broaden use cases from acquisition and retention to claims triage and distribution enablement.
For carriers, this translates to potential gains in time-to-rate, lower model deployment friction, and sharper segmentation. With Zelros in the fold, expect more generative AI features around agent assistance, customer communications, and upsell prompts-areas that need tight governance.
Leadership Signals
Erel Margalit, founder of JVP and chairman of Earnix, said the new capital gives room to pursue acquisitions and growth initiatives: "It's giving me a lot more money to invest. If we want to make an acquisition and if we want to do some more things, there is more where that came from."
On timing for a public listing: "You need $300 million of revenue in order to go IPO and that will take another year or two." An IPO or a strategic sale remains on the table depending on market conditions and opportunities.
What Insurance Executives Should Watch
- Vendor stability: A larger balance sheet and strong sponsors reduce counterparty risk and support multi-year transformation programs.
- Roadmap and M&A: Track how Zelros capabilities show up in Earnix modules. Ask for specifics on agent assist, underwriting triage, and customer comms features.
- Integration depth: Confirm connectors and APIs with your core systems, data warehouses, and rating engines. Measure deployment cycles by line of business.
- Model governance: Ensure pricing and generative components meet internal model risk standards (documentation, validation, monitoring, bias checks, and audit trails).
- ROI evidence: Request benchmarks on combined ratio impact, hit ratio, elasticity modeling accuracy, and cycle-time reductions.
- Data controls: Clarify PII handling, regional data residency, and fallback behavior for AI features in production.
Action Checklist for the Next 30-90 Days
- Hold a roadmap review with your Earnix account team; prioritize 1-2 high-ROI use cases per line.
- Run a constrained pilot using a champion-challenger setup with clear KPIs (pricing lift, speed-to-rate, policy conversion).
- Update your model risk documentation to cover any new gen-AI features introduced post-Zelros acquisition.
- Stress test integrations with policy admin and claims systems to cut latency from pricing to issuance.
- Align incentives across actuarial, distribution, and IT so approved models actually reach production.
IPO and Exit Outlook
The target cited for a public listing is around $300 million in revenue within one to two years. Whether the company pursues an IPO or accepts a strategic offer, the current funding signals continued investment in product and scale. For customers, the practical takeaway is continuity and a stronger roadmap-plan multi-year initiatives with that in mind.
Reference Links
Upskilling Your Team
If you're building internal capability around pricing analytics, model governance, or gen-AI in distribution, these resources can help:
