Cover Whale Announces $40 Million in Growth Equity Financing from Morgan Stanley Expansion Capital to Fund Growth Initiatives

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07/28/2025 - 09:00 AM

NEW YORK--(BUSINESS WIRE)-- Cover Whale Insurance Solutions, Inc., a leading insurtech specializing in connected insurance for commercial auto, announced $40 million in new equity financing from Morgan Stanley Expansion Capital. The financing will enable Cover Whale to accelerate investments in its technology platform, analytics, and expand its product offerings to drive increased growth and profitability.

Founded in 2020, Cover Whale’s proprietary technology platform and algorithmic underwriting enables agents to bind trucking insurance policies online in minutes. By leveraging real-time telematics and other data sources, Cover Whale continuously underwrites policies throughout their term, achieving industry-leading loss ratios in the traditionally challenging commercial trucking market segment.

Commenting on the financing, Dan Abrahamsen, Founder and CEO of Cover Whale, said: “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 organization, and refined our pricing, underwriting and loss control programs. 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 capitalize on the significant growth opportunities ahead.”

Year to date, Cover Whale has $133 million of gross written premiums during the first half of 2025, on track for a full-year target of $277 million.

Morgan Stanley Expansion Capital first invested in Cover Whale in May 2024 with a structured debt instrument. “Today’s growth equity investment reflects our conviction in Cover Whale’s business strategy, execution and leadership team,” said 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.”

About Cover Whale

Cover Whale is a leading insurtech on a mission to make commercial auto insurance faster, easier, and smarter—for agents, policyholders, and the broader insurance ecosystem. Grounded in technology, automation, and the strategic use of AI and real-time data, Cover Whale offers the industry’s fastest quote and bind platform, while delivering industry leading loss ratios. The company’s proprietary driver safety program combines continuous underwriting, real-time risk monitoring, telematics, and AI-powered driver coaching to reduce losses, reward safe driving, and improve road safety for both covered drivers and the motoring public. Operating as a managing general agent (MGA), Cover Whale has partnered with nearly 5,000 agents to write more than $1.3 billion in gross premium, since its inception in 2020. As it has grown, the organization has earned recognition across the industry, including being named a top insurtech to watch by PropertyCasualty360 and one of Forbes’ Best Startup Employers. To learn more, visit coverwhale.com and stay current via LinkedIn, Facebook, and their blog.

About Morgan Stanley Expansion Capital

Morgan Stanley Expansion Capital is the growth-focused private investment platform within Morgan Stanley Investment Management. MSEC targets late-stage growth equity and credit investments within technology, consumer, healthcare, and other high-growth sectors. For nearly four decades, Morgan Stanley Expansion Capital has successfully pursued growth investment opportunities and has completed investments in over 220 companies, leveraging the global brand and network of Morgan Stanley.

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has over 1,400 investment professionals around the world and $1.7 trillion in assets under management or supervision as of June 30, 2025. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, client service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations, and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions, and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.