Hippo Holdings Inc. has partnered with Greenlight Capital Re’s Innovations segment, which links investment opportunities in emerging MGAs with carrier and reinsurance support, allowing Hippo to co-invest with Greenlight Re in early-stage programs while its subsidiary, Spinnaker Insurance Company, can serve as Greenlight’s preferred U.S. admitted fronting carrier for qualifying co-invested programs.
According to Hippo, Spinnaker will issue the insurance policies behind those programs through a connected, aligned deal flow, while Greenlight Re will provide reinsurance capacity and expertise to support the underlying risk.
The companies already support several of the same successful programs that have grown to scale, with Spinnaker issuing the policies while Greenlight Re has invested in those businesses, provided reinsurance capacity, or both.
“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,” Hippo explained.
The firm continued, “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.”
Rick McCathron, president and CEO of Hippo, commented, “We believe the MGA and program market remains one of the most dynamic areas of insurance. 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.”
Jesse Willmott, president, reinsurance and portfolio management at Spinnaker Insurance Company, said, “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.
“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.”
Greg Richardson, CEO of Greenlight Re, noted, “Since 2018, Greenlight Re Innovations has built a diverse portfolio of technology-driven insurance businesses. Our partnership with Hippo and Spinnaker gives those businesses more ways to scale, and it fits our focus on disciplined, profitable growth.”
