The latest partnership news from Hippo and GreenlightRe ;
Hippo Holdings Inc. (NYSE: HIPO) (“Hippo”) has announced a strategic partnership with the Innovations segment of Greenlight Capital Re, Ltd. (NASDAQ: GLRE) (“Greenlight Re”) that connects opportunities to invest in emerging managing general agents (MGAs) with carrier and reinsurance support for their programs.
Through the investment model of Greenlight Re Innovations, Hippo can invest alongside Greenlight Re in early-stage insurance programs, while its subsidiary Spinnaker Insurance Company can serve as Greenlight’s preferred U.S. admitted fronting carrier for qualifying co-invested programs as opportunities align. Spinnaker will issue the insurance policies behind those programs through a connected, aligned deal flow. Greenlight Re will bring reinsurance capacity and expertise to support the insurance risk.
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.
“We believe the MGA and program market remains one of the most dynamic areas of insurance,” said Rick McCathron, president and CEO of Hippo. “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
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Engaging with emerging MGA business
The partnership comes as Hippo works with emerging MGA programs to support insurance innovation and diversify across insurance products. Greenlight Re brings a steady source of potential investments and program partners supported by Hippo’s underwriting experience and Spinnaker's carrier capacity.
“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.”
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