Launching a new insurance program is a bit like building a house: someone has to pay for the lot, someone has to pour the foundation, and someone has to cover the risk of the storm. Hippo Holdings Inc. has now lined up those roles through a new alliance. The company has partnered with Greenlight Capital Re’s Innovations segment, which links investment opportunities in emerging managing general agents with carrier and reinsurance support.

How the Arrangement Works

Under the Hippo partners with Greenlight Re agreement, Hippo can co-invest with Greenlight Re in early-stage programs. Its subsidiary, Spinnaker Insurance Company, can serve as Greenlight’s preferred U.S. admitted fronting carrier for qualifying co-invested programs.

According to Hippo, Spinnaker will issue the insurance policies behind those programs through a connected, aligned deal flow. Greenlight Re will provide reinsurance capacity and expertise to support the underlying risk.

Already Working Side by Side

The two companies are not starting from zero. They already support several of the same successful programs that have grown to scale, with Spinnaker issuing the policies while Greenlight Re has invested in the businesses, provided reinsurance capacity, or both.

“The partnership builds on those existing relationships to establish a more coordinated approach to evaluating emerging programs and accelerating speed to market with full insurance stack capabilities,” Hippo explained.

What Emerging MGAs Need

“Emerging MGAs need funding to build their businesses, an insurer to issue their policies and reinsurance to support the risk,” the firm continued. “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.”

Hippo’s CEO on the Strategy

Rick McCathron, president and CEO of Hippo, said: “We believe the MGA and program market remains one of the most dynamic areas of insurance. 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.”

He added: “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 today.”

Spinnaker’s Take

Jesse Willmott, president, reinsurance and portfolio management at Spinnaker Insurance Company, said: “This partnership combines Greenlight Re’s track record of making significant investments in emerging businesses, and Spinnaker’s track record of quickly bringing programs to market with the right underwriting capabilities and capacity.”

“We already support a number of businesses that Greenlight Re has backed, and this partnership gives us a way to work together to deliver a more efficient model as new programs take shape,” he said.

Greenlight Re’s Perspective

Greg Richardson, CEO of Greenlight Re, noted: “Since 2018, Greenlight Re Innovations has built a diverse portfolio of technology-driven insurance businesses. Our partnership with Hippo and Spinnaker gives those businesses more ways to scale, and it fits our focus on disciplined, profitable growth.”

For startups hunting for capital, a carrier and reinsurance in one place, the partnership offers a shorter path from idea to issued policy.