Insurtech Hippo snaps up insurance carrier Spinnaker in expansion move
Hippo, a US insurtech focused on the home insurance market, is acquiring Spinnaker Insurance Company, a national property and casualty insurer licensed in 50 states.
Hippo said the strategic move is aimed at expanding the geographical reach of its home insurance policies.
Since 2017, Hippo has partnered with Spinnaker as its largest carrier platform, with its products backed by Spinnaker available in more than 18 states.
The acquisition will see Spinnaker join Hippo’s group of companies. Hippo Insurance will continue to operate as a managing general agent with a portion of its premiums to be underwritten by its affiliate Spinnaker and the balance underwritten by other carrier partners. Spinnaker will operate independently under the Hippo umbrella and maintain its position as a programme and fronting company.
“Bringing Spinnaker into the Hippo family is a natural next step in growing our proactive home insurance offering,” said Rick McCathron, chief insurance officer at Hippo. “Spinnaker knows the complexities of our industry, mirrors our same standards for technology innovation and customer experience and has continued to meet, oftentimes exceeding, our expectations over the years. We’re proud of the progress we’ve made as partners and look forward to closing the acquisition.”
Spinnaker chief executive officer Dave Ingrey, said: “Spinnaker is excited to join the Hippo family. Since launching in 2015, Spinnaker has pioneered the concept of value-added fronting: working to create products that benefit the policyholder, the producer, the insurer, and the reinsurer. We know Hippo shares these ideals and we appreciate their relentless pursuit of innovative ways to grow their value proposition for all their customers. Spinnaker is very excited that as a result of this transaction, we can continue to transform the customer experience in ways that will help both companies, as well as all our current and future business partners.”