FRANKFURT (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.

"We will tap into a highly attractive market overseas, unlocking significant growth," Ergo's CEO Markus Riess said.

Next was founded in 2016 and now has around 700 employees and 600,000 customers.

Munich Re and Ergo have been investors since 2017.