American Financial Group has announced that it has purchased machine learning company Verikai.
The latter, which has reportedly developed a machine learning tool to help assess insurance risk, will continue to be led by Jeff Chen, its current president and CEO.
Carl H. Lindner III, co-CEO of American Financial Group, said the company was delighted to welcome Verikai to AFG.
He added, “We believe that artificial intelligence and machine learning will continue to have a significant impact on the insurance industry and view Verikai as a thoughtful and effective leader in the use of these technologies.”
Verikai was founded in 2018 and is based in San Francisco. It received $6 million in Series A funding in August 2020. Its website claims it has a database of over 5,000 behavioral attributes for over 250 million people in the United States. This, he says, provides deep insight into the true health risks for these people.
During this time, the American financial group based in Cincinnati has continued to strengthen. In May last year, it announced that it had gone from a net loss in the first quarter of 2020 of $301 million to a net profit of $419 million in the first quarter of 2021. This followed the announces in February 2021 that its profits for the fourth quarter of 2020 were $692 million, down from $211 million. m in the fourth quarter of 2019.
The deal between the two companies is reportedly worth $120 million in cash.
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