Cover Whale raises $40m from Morgan Stanley to support expansion

Cover Whale Insurance Solutions, Inc., a commercial auto insurtech, has raised $40 million in equity funding from Morgan Stanley Expansion Capital. The company plans to use the investment to further develop its technology, improve its data analytics capabilities, and expand its insurance offerings in pursuit of additional growth.

Established in 2020, Cover Whale provides a platform that allows agents to issue trucking insurance policies online.

Its system uses algorithm-based underwriting and real-time telematics data to assess risk throughout the life of a policy.

The company reports lower-than-average loss ratios in the commercial trucking insurance space, which has typically been difficult for insurers.

Dan Abrahamsen, Founder and CEO of Cover Whale, commented: “After years of rapid growth, 2024 marked a pivotal year for Cover Whale as we focused on re-building our foundation.

“We invested in our technology platform, built a high-performing service organisation, and refined our pricing, underwriting and loss control programmes.

“Morgan Stanley Expansion Capital’s transition from lender to equity partner is a gratifying affirmation of the tremendous progress made over the past few years, and their renewed backing gives us the resources to fully capitalise on the significant growth opportunities ahead.”

So far in 2025, Cover Whale has reported $133 million in gross written premiums for the first half of the year and is projecting a total of $277 million by year-end.

Morgan Stanley Expansion Capital initially invested in Cover Whale in May 2024 through a structured debt arrangement.

“Today’s growth equity investment reflects our conviction in Cover Whale’s business strategy, execution and leadership team,” added Nick Nocito, Executive Director of Morgan Stanley Expansion Capital.

“Over the last 18 months, the team has built a high-quality, scalable platform that we believe will generate significant growth in the coming years.”

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