Hippo and Greenlight Re form MGA investment and carrier partnership

Hippo Holdings Inc. (NYSE: HIPO) announced a strategic partnership with the Innovations segment of Greenlight Capital Re, Ltd. (NASDAQ: GLRE) to connect early-stage managing general agent (MGA) investments with carrier and reinsurance support.

Under the agreement, Hippo can invest alongside Greenlight Re in early-stage insurance programs through Greenlight Re Innovations. Hippo's subsidiary Spinnaker Insurance Company will serve as Greenlight Re's preferred U.S. admitted fronting carrier for qualifying co-invested programs, issuing policies while Greenlight Re provides reinsurance capacity.

The two companies already support several of the same insurance programs. The partnership is intended to establish a more coordinated approach to evaluating emerging programs and accelerating their path to market.

"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."

"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," said Jesse Willmott, president of reinsurance and portfolio management at Spinnaker Insurance Company.

Greg Richardson, CEO of Greenlight Re, said the company has built a diverse portfolio of technology-driven insurance businesses since 2018. "Our partnership with Hippo and Spinnaker gives those businesses more ways to scale, and it fits our focus on disciplined, profitable growth," he said.

Insurance Advisory Partners LLC acted as exclusive financial advisor to Greenlight Re in the transaction.

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