Home insurtech Hippo acquires Spinnaker Insurance
Hippo, a startup home-insurance MGA, has agreed to acquire Spinnaker Insurance Company pending regulatory approval.
Spinnaker, which launched in 2015, has been backing Hippo products in 18 states, but is licensed in all 50. Hippo's goal in buying the carrier is to expand its geographical reach.
"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, in a statement. “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."
Hippo Insurance will continue to operate as an MGA, with a portion of its premiums underwritten Spinnaker and the rest underwritten by other carrier partners. Spinnaker will operate independently under the Hippo umbrella, servicing other program administrators.
“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," says company CEO Dave Ingrey.
The deal is expected to close in the third quarter of 2020. Terms were not disclosed.