Cover Whale Secures $40 Mln Equity Investment From Morgan Stanley To Fuel Tech And Product Expansion

Morgan Stanley

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(RTTNews) - Cover Whale Insurance Solutions, Inc., a US-based insurtech focused on connected commercial auto insurance, has raised $40 million in equity financing from Morgan Stanley Expansion Capital (MS).

The funding will be used to enhance the company's technology platform, analytics capabilities, and expand its suite of insurance products to support further growth and profitability.

Founded in 2020, Cover Whale offers a proprietary platform that enables insurance agents to bind trucking policies online within minutes. By integrating real-time telematics and multiple data sources, the company underwrites policies continuously throughout their term, achieving top-tier loss ratios in the complex commercial trucking market.

CEO Dan Abrahamsen noted that 2024 was a transformative year, with the company strengthening its tech infrastructure, service organization, pricing models, and underwriting practices. He emphasized that Morgan Stanley's transition from lender to equity partner is a strong endorsement of Cover Whale's progress and future potential.

In the first half of 2025, Cover Whale reported $133 million in gross written premiums and remains on pace to hit its full-year target of $277 million.

Morgan Stanley Expansion Capital, which initially invested via a structured debt deal in May 2024, expressed confidence in the company's direction and leadership. Executive Director Nick Nocito highlighted Cover Whale's scalable platform and its potential to drive long-term growth.

MS currently trades at $142.11 or 0.63% lower on the NYSE.