Hippo Holdings Inc. (NYSE: HIPO) (“Hippo”) today announced a strategic partnership with the Innovations segment of Greenlight Capital Re, Ltd. (NASDAQ: GLRE) (“Greenlight Re”) that connects opportunities to invest in emerging managing general agents (MGAs) with carrier and reinsurance support for their programs.
Through the investment model of Greenlight Re Innovations, Hippo can invest alongside Greenlight Re in early-stage insurance programs, while its subsidiary Spinnaker Insurance Company can serve as Greenlight’s preferred U.S. admitted fronting carrier for qualifying co-invested programs as opportunities align. Spinnaker will issue the insurance policies behind those programs through a connected, aligned deal flow. Greenlight Re will bring reinsurance capacity and expertise to support the insurance risk.
Emerging MGAs need funding to build their businesses, an insurer to issue their policies and reinsurance to support the risk. This partnership will coordinate the beneficial relationships emerging MGAs need for capacity, capital, and expertise for qualifying programs. For the wider insurance market, the aim is to help new providers develop products backed by experienced underwriting and reinsurance partners.
“We believe the MGA and program market remains one of the most dynamic areas of insurance,” said Rick McCathron, president and CEO of Hippo. “Our partnership with Greenlight Re brings experience identifying and backing those businesses, giving us opportunities to participate in emerging innovative programs both as an investor and through Spinnaker’s role as their carrier. It supports our strategy to grow across insurance products while applying the underwriting discipline that has shaped Hippo’s business — the same discipline that helped build many of our biggest program partners today.”
Connecting investment with capacity
The companies already support several of the same successful insurance programs that have grown to scale. Spinnaker issues policies for their programs, while Greenlight Re has invested in those businesses and/or provided reinsurance capacity. The partnership builds on those existing relationships to establish a more coordinated approach to evaluating emerging programs and accelerating speed to market with full insurance stack capabilities.
“This partnership combines Greenlight Re’s track record of making significant investments in emerging businesses, and Spinnaker’s track record of quickly bringing programs to market with the right underwriting capabilities and capacity,” said Jesse Willmott, president, reinsurance and portfolio management at Spinnaker Insurance Company. “We already support a number of businesses that Greenlight Re has backed, and this partnership gives us a way to work together to deliver a more efficient model as new programs take shape.”
Engaging with emerging MGA business
The partnership comes as Hippo works with emerging MGA programs to support insurance innovation and diversify across insurance products. Greenlight Re brings a steady source of potential investments and program partners supported by Hippo’s underwriting experience and Spinnaker’s carrier capacity.
“Since 2018, Greenlight Re Innovations has built a diverse portfolio of technology-driven insurance businesses,” said Greg Richardson, CEO of Greenlight Re. “Our partnership with Hippo and Spinnaker gives those businesses more ways to scale, and it fits our focus on disciplined, profitable growth.”
About Hippo
Hippo is a technology-native insurance group that uses its carrier platform to diversify risk across both personal and commercial lines. Through the Hippo Homeowners Insurance Program, the company applies deep industry expertise and advanced underwriting to deliver proactive, tailored coverage for homeowners. Hippo Holdings Inc. subsidiaries include Hippo Insurance Services, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company and Wingsail Insurance Company. Hippo Insurance Services is a licensed property casualty insurance agent with products underwritten by various affiliated and unaffiliated insurance companies. For more information, please visit http://www.hippo.com.
