Hippo Holdings has announced a strategic partnership with the Innovations segment of Greenlight Capital Re (Greenlight Re). Under the agreement, Hippo can invest alongside Greenlight Re in early-stage insurance programmes. No financial terms were disclosed.
Hippo's subsidiary Spinnaker Insurance Company can serve as Greenlight Re's preferred US admitted fronting carrier for qualifying co-invested programmes. Spinnaker will issue the insurance policies behind those programmes, while Greenlight Re will provide reinsurance capacity and expertise.
The partnership connects opportunities to invest in emerging managing general agents (MGAs) with carrier and reinsurance support. Co-investment will take place as opportunities align.
The companies already support several of the same insurance programmes, with Spinnaker issuing policies and Greenlight Re investing in or providing reinsurance capacity to them.
"We believe the MGA and program market remains one of the most dynamic areas of insurance," said Rick McCathron, President and CEO of Hippo.
"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."
Hippo Holdings is a technology-native insurance group listed on the New York Stock Exchange under the ticker HIPO. Hippo says the partnership gives it opportunities to take part in emerging programmes both as an investor and through Spinnaker's role as their carrier.
Greenlight Re is listed on Nasdaq under the ticker GLRE and has licensed reinsurance entities in the Cayman Islands and Ireland. Its Innovations segment has backed technology-driven insurance businesses since 2018.
Insurance Advisory Partners LLC acted as exclusive financial adviser to Greenlight Re.
