FRANKFURT, March 20 (Reuters) - Munich Re is

buying the 71% of Next Insurance that it doesn't already own,

valuing the California-based company at $2.6 billion and

strengthening its foothold in the United States, a division of

the German company announced on Thursday.

Ergo, the primary insurance business of reinsurer Munich Re,

will become the sole owner of Next, which is focused on insuring

U.S. small businesses.

Until now, Next investors have included Allianz,

Alphabet and American Express ( AXP ).

It is the latest in a spate of deals affecting German

insurance companies.