Why Hippo Is Buying Spinnaker Insurance Company

By Amit Chowdhry ● June 4, 2020
  • Hippo, a company that is transforming home insurance and ownership, announced that it entered into a definitive agreement to buy Spinnaker Insurance Company

Hippo, a company that is transforming home insurance and ownership, announced that it entered into a definitive agreement (pending regulatory approval) to buy Spinnaker Insurance Company — which is a national property and casualty insurer licensed in 50 states and rated A- (Excellent) by A.M. Best Company. Going forward, Spinnaker will join Hippo’s family of companies.

Hippo Insurance Services had originally partnered with Spinnaker as its largest carrier platform since 2017 with Spinnaker-backed Hippo products currently available to consumers in more than 18 states. And the acquisition of Spinnaker highlights the alignment between the two companies and the strength of the partnership built over the last 3 years. This strategic move will enable Hippo to expand the geographical reach of its modern home insurance policies which also include smart home monitoring kits.

“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.”

Going forward, 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. And Spinnaker will operate independently under the Hippo umbrella and maintain its position as a fronting company. Plus Spinnaker will continue to service a diverse portfolio of program administrators and drive the growth of its value-added program platform.

“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,” explained Spinnaker Chief Executive Officer Dave Ingrey. “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.”

Founded by CEO Assaf Wand and CTO Eyal Navon, Hippo Insurance Services brings homeowners closer to a modern home insurance experience through an efficient online purchase experience using trusted data sources like a smart home device kit included with every policy and even more coverage for possessions such as appliances, electronics, and home offices.