Hippo / Spinnaker 2020
Hippo Insurance acquired Spinnaker Insurance Company for $40M on August 4, 2020.
- Target
- Spinnaker Insurance Company
- Acquirer
- Hippo Insurance
- Deal value
- $40M
- Deal type
- Mixed
- Announced
- August 4, 2020
- Sub-sector
- Insurtech
Transaction overview
- Hippo Insurance acquired Spinnaker Insurance Company for approximately $40 million on August 4, 2020.
- The deal closed on the same day it was announced, August 4, 2020.
- Consideration included a mix of cash and Hippo equity.
- Spinnaker is a licensed admitted carrier operating across multiple U.S. states.
- The acquisition gave Hippo direct control over its own insurance paper, reducing dependence on third-party carriers.
- Hippo, founded in 2017, sells home insurance with a focus on proactive risk monitoring and smart home data.
- Owning a carrier allowed Hippo to retain more premium and improve unit economics.
Why it matters
- The deal marked one of the first instances of a U.S. home insurtech acquiring its own admitted carrier rather than relying on fronting arrangements.
- Carrier ownership let Hippo control underwriting decisions and retain a larger share of written premium directly.
Strategic rationale
Hippo acquires admitted P&C carrier licensed in all 50 states to gain its own underwriting capacity and reduce reliance on reinsurance partners.
Deal terms & multiples
About Spinnaker Insurance Company
Spinnaker Insurance Company is a U.S. admitted carrier licensed in dozens of states. The company operated primarily as a program carrier, writing specialty and personal lines business on behalf of managing general agents. Its admitted status made it attractive to insurtechs seeking to own their own paper without building a carrier from scratch. Spinnaker was headquartered in Illinois.
- HQ
- United States
- Key metric
- Licensed admitted carrier in approximately 50 U.S. states at time of acquisition
About Hippo Insurance NYSE: HIPO
Hippo Insurance was founded in 2017 and is headquartered in Palo Alto, California. The company sells homeowners insurance and uses smart home device data to price risk and reduce claims. Hippo raised over $350 million in venture funding before going public via SPAC in 2021. It writes policies across more than 30 U.S. states.
- Founded
- 2017
- Ticker
- NYSE: HIPO
Frequently asked questions
Why did Hippo acquire Spinnaker Insurance?
Hippo wanted to own its own admitted carrier so it could control underwriting and retain more of the premium it wrote. Previously, Hippo relied on third-party carriers to hold its insurance paper.
How much did Hippo pay for Spinnaker?
Hippo paid approximately $40 million in a mix of cash and equity.
When did the Hippo and Spinnaker deal close?
The deal was announced and closed on the same day, August 4, 2020.
What does Spinnaker Insurance do?
Spinnaker is a U.S. admitted carrier licensed across roughly 50 states, writing personal and specialty lines through program and MGA relationships.
Was Hippo publicly traded when it bought Spinnaker?
No. Hippo was still a private company in August 2020 and did not go public until 2021 via a SPAC merger.
What did Hippo gain from owning an admitted carrier?
Carrier ownership gave Hippo direct control over policy terms, pricing, and claims handling, and allowed it to keep a larger share of written premium on its own balance sheet.
Sources
- hippo.com /news/hippo-acquires-spinnaker-insurance-company