Hippo to Acquire Spinnaker Insurance Company

Transaction Overview

Spinnaker Insurance Company (“Spinnaker”) announced the sale to Hippo

  • Transaction subject to required regulatory approvals and customary closing conditions
  • Spinnaker is a New Jersey-based national property and casualty insurer rated “A-” by A.M. Best
  • Founded in 2015 by current management team; Spinnaker will operate independently under Hippo
  • Has ability to offer admitted insurance products in 50 states and the District of Columbia
  • Utilizes program administrators and managing general agents to access niche markets
    • Focus on short-tail business (homeowners, renters, small comm.), specialty lines and fronting opportunities
  • $208mm of direct written premiums in 2019 and policyholders’ surplus of $38mm as of 12/31/19(a)

Hippo is a Palo Alto-based high-growth managing general agent that’s transforming home insurance

  • Founded in 2015, Hippo has raised over $200mm of capital with latest round valuation of ~$1bn
  • Works exclusively with top-rated insurance partners; policies available to over 65% of U.S. homeowners
  • Offers an efficient online purchase experience using trusted data sources
    • A smart home device kit is also included with every policy
  • Hippo has partnered with Spinnaker as its largest carrier platform since 2017
    • Spinnaker-backed programs available to consumers in more than 18 states

This transaction highlights the alignment and strength of partnership between Hippo and Spinnaker

  • Allows Hippo to expand the geographical reach of its modern home insurance policies
  • Facilitates the growth of Spinnaker’s value-added program platform

TigerRisk Capital Markets & Advisory Role

TCMA is acting as financial advisor to Spinnaker; key roles and responsibilities include:

  • Assistance in diligence coordination and in creation of diligence materials shared with Hippo
  • Providing insights around key transaction terms & conditions
  • Assistance in negotiating an optimal transaction outcome for Spinnaker
  • Providing objective advice and acting as a confidant to the seller throughout the process

TigerRisk is also providing assistance with the A.M. Best update and rating process