Hippo Establishes Relationship With Ally Financial Subsidiary, Doubles Underwriting Capacity
August 11 2021 - 9:05AM
Business Wire
The issuing carrier relationship, which will
scale Hippo’s innovative insurance products to more homeowners
across the U.S., will be Hippo’s largest to-date and will be Ally’s
first home insurance issuing carrier relationship
Hippo, the home insurance group that created a new standard of
care and protection for homeowners, today announced a new issuing
carrier relationship with Ally Financial Inc. (NYSE: ALLY)
subsidiary, Motors Insurance Corp., which is a 50 state carrier.
The deal will strengthen and double Hippo Insurance Services’
insurance underwriting capacity, becoming Hippo’s largest managing
general agent (MGA) unaffiliated program to date.
Over the last six years, Hippo has expanded its insurance
products to reach homeowners in 37 states and grown its
distribution partnerships to meet customers when and where they
want to buy. The agreement, which will be the first issuing carrier
relationship for Ally, enables Hippo to enhance its underwriting
capabilities, deliver flexible rates and connects Hippo to a top-20
U.S. financial holding company with a common belief in transforming
legacy industries in favor of the customer.
"By working with Ally, we are bringing significant growth and
diversification to our business, offering Hippo’s protective
insurance products to more homeowners across the country," said
Rick McCathron, president at Hippo. “Our innovative and proactive
approach aligns perfectly with Ally's customer-centric mission to
serve the needs of the customer and help protect people's financial
future, which includes their most valuable financial asset: the
home. We're thrilled to be working with such a prestigious
financial institution and are excited to have their support as we
build the home insurance company of the future.”
Hippo’s capital-light business model and transformational focus
matches Ally’s desire to work with a highly diversified book of
business such as Hippo’s, which takes a proactive approach to home
care and maintenance to protect the joy of homeownership on behalf
of its customers. With its portfolio of home care services and
products, Hippo has established a new standard for home protection
and care through advanced underwriting, smart devices, and
preventive maintenance, which in turn helps homeowners foresee
potential issues before they turn into costly problems.
“This relationship complements and diversifies the ongoing
expansion of Ally’s insurance business,” said Mark Manzo, president
of insurance, Ally Financial. “Hippo’s innovative model and
proactive approach to helping their customers protect their most
important investment aligns with our commitment to be a relentless
ally for all things financial. We’re excited to build on the
investment from our strategic investment arm, Ally Ventures, and
support Hippo’s national growth.”
The agreement with Ally expands Hippo’s book of business across
multiple partners and substantiates the MGA portion of Hippo’s
business separate from its carrier business through Spinnaker,
maintaining a capital light model with sophisticated underwriting
guidelines and pricing models. The new relationship will initially
launch in 10 states and then roll out nationally.
About Hippo
Hippo’s goal is to make homes safer and better protected so
customers spend less time worrying about the burdens of
homeownership and more time enjoying their homes and the life
within. Harnessing real-time data, smart home technology, and a
growing suite of home services, we are creating the first
integrated home protection platform. Hippo is headquartered in Palo
Alto, California with offices in Austin and Dallas, Texas and
insurance products available to more than 80 percent of U.S.
homeowners in 37 states. Hippo Insurance Services is a licensed
property casualty insurance agent with commercial and personal
lines products underwritten by various insurance companies. For
more information, including licensing information, visit
http://www.hippo.com.
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Andrea Collins / Courtney Klosterman press@hippo.com
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