After temporarily halting its homeowners’ insurance offering in August, the company is now in the process of gradually reintroducing it. Hippo CEO Rick McCathron mentioned that the business has reactivated its builder channel as part of this reopening initiative.
Despite reporting a net loss of $53 million for the quarter, McCathron highlighted that Hippo achieved its most promising set of results since becoming a public company. The insurtech underwent a Special Purpose Acquisition Company (SPAC) process in 2021, culminating in its listing on the New York Stock Exchange (NYSE) in August of the same year.
In an interview with Insurance Business, McCathron acknowledged that while Hippo may not necessarily “have to have” Spinnaker, the insurance company remains a valuable asset. However, he refrained from providing explicit comments on the ongoing sale speculation surrounding the business.
McCathron highlighted the company’s stance, stating, “Our view is we’re not going to comment on a rumour because … rumours are always flying and we’ve had rumours about Spinnaker for a couple of years.” The CEO’s response reflects a measured approach to addressing speculation, maintaining a level of discretion amid the ongoing discussions surrounding Spinnaker Insurance’s future within the Hippo ecosystem.
Hippo, initially introduced as a managing general agent (MGA) for home insurance, initiated its partnership with Spinnaker in 2020. The collaboration between the two entities dates back to the inception of Hippo in 2017.
During the Spinnaker deal in 2020, Rick McCathron, who was then the Chief Insurance Officer at Hippo, lauded the acquisition as the “natural next step” for the company. This strategic move was aimed at enhancing and expanding Hippo’s home insurance offerings.
McCathron continued: “We’re thrilled with Spinnaker as an asset, we’re thrilled with the contribution it makes to our earnings, we’re thrilled with the partnerships and the growth of that company, and we do want to have control over our own balance sheet.
“Do we have to have Spinnaker to partner with customers and our homeowners’ insurance program? No, we don’t, but it de-risks our business a lot when we do have our own carrier, we do have our own capacity, and we can file our own rates and our own guidelines.
He added: “And so we’re pleased with Spinnaker as an asset, it’s one of the jewels within the Hippo crown.”
Author: Joanna England
