Homeowners insurtech Hippo has closed its acquisition of program fronting specialist Spinnaker Insurance Company, a deal that was first announced in June.
Bedminster, New Jersey-based Spinnaker is a national property and casualty insurer licensed in 50 states and rated A- (Excellent) by AM Best. Hippo has partnered with Spinnaker, its largest carrier platform, since 2017.
Palo Alto, California-based Hippo provides insurance policies to consumers in more than 31 states. It said the acquisition will accelerate its geographical reach, with the expectation that 11 additional states will be added by June 2021.
“We’ve experienced tremendous growth in the last three years since our launch, and the acquisition of Spinnaker will allow Hippo Home Insurance products to reach a greater number of homeowners across the country,” said Rick McCathron, Hippo’s chief insurance officer.
In an interview with this publication in June, McCathron explained that the acquisition ensures the MGA has enough capacity of A- or better paper to satisfy the requirements of its distribution partners.
Hippo Insurance Services will continue to operate as a managing general agent, while Spinnaker will operate independently under the Hippo umbrella and continue to service its portfolio of program administrators and drive the growth of its program platform.
In July Hippo closed a $150mn series E financing round that valued the insurtech at $1.5bn ahead of a potential IPO next year.
Spinnaker was founded in 2015 by Ken and Dave Ingrey with backing from management, former Arch chairman Paul Ingrey, Arch and other sources.
Dave Ingrey, who is Spinnaker’s CEO, commented: “Joining forces with Hippo has already proven to benefit our business as we work to create products that benefit the policyholder, the producer, the insurer, and the reinsurer.”