Hippo and Greenlight have formed a partnership to support emerging insurance programs, combining potential investment from both companies with policy issuance by Hippo subsidiary Spinnaker and reinsurance from Greenlight Re.

Key Takeaways

  • Hippo can co-invest with Greenlight Re in early-stage programs, while Spinnaker can act as the preferred U.S. admitted fronting carrier for qualifying co-invested programs.
  • The partnership builds on existing programs supported by both Spinnaker and Greenlight Re.

How the Hippo and Greenlight partnership will work

The arrangement brings together funding, policy issuance and reinsurance for qualifying programs run by emerging managing general agents, or MGAs. Hippo said Spinnaker will issue policies for those programs, while Greenlight Re will provide reinsurance capacity and expertise to support the underlying risk.

A fronting carrier issues insurance policies, while reinsurance provides support for the risks behind them. The companies aim to coordinate their evaluation of emerging programs and help them reach the market more quickly.

Existing relationships underpin the agreement

The companies already support several programs that have grown to scale: Spinnaker issues their policies, while Greenlight Re has invested in the businesses, provided reinsurance capacity, or done both.

Greenlight Re Innovations supports technology-focused insurance businesses through investment, risk capacity and access to an insurance network. Greenlight Re CEO Greg Richardson said the unit has built a portfolio of technology-driven insurance businesses since 2018 and that the partnership gives those businesses more ways to scale.

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