Ally Monetary indicators home contents insurance contract with Hippo Holdings Inc – CueReport
- The deal will double Hippo's underwriting capacity and provide it with more capital to improve its services and technology.
- Hippo has also entered into a fronting carrier agreement with Texas-based Incline P&C Group to expand its customer base.
American bank holding company Ally Financial has reportedly worked with home insurance group Hippo Holdings, Inc.
As part of the deal, Hippo will be responsible for underwriting the policies and selling them to customers, while Ally will take the risk for them. Initially, the online bank plans to set aside around $ 500 million in cash.
Hippo President Rick McCathron stated that the deal will double the company's underwriting capacity and provide it with more money to improve its services and technology. McCathron went on to emphasize that Hippo is a rapidly expanding company and that it is very important to have sufficient underwriting capacity to support its growth.
For the record, the collaboration comes a week after Hippo started trading on the New York Stock Exchange. The company had gone into trading following its merger with a blank check acquisition firm backed by Mark Pincus and Reid Hoffman, the co-founders of Zynga and LinkedIn, respectively.
Prior to national rollout, Ally-supported policies will be deployed to ten countries under the agreement. According to Mark Manzo, President of Insurance at Ally Financial, the relationship will diversify and complement the ongoing evolution of Ally's insurance business.
While Ally Financial's insurance business has so far been limited to insurance for the auto sector, McCathron sees potential for further partnerships with the online bank.
In addition to this collaboration, Hippo has also announced a fronting carrier agreement with Incline P&C Group, an insurance company based in Austin, Texas. Under the agreement, Incline's customers could secure access to the home protection and maintenance services offered by Hippo.