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

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.”

With support from Cover Whale Morgan Stanley funding, the company is set to enhance profitability through tech-driven underwriting and expanded service delivery.