Ally Monetary indicators home contents insurance partnership with Hippo – Reuters
NEW YORK, Aug 11 (Reuters) – US online bank Ally Financial (ALLY.N) has agreed to top up home insurance policies provided by Hippo Holdings Inc. to provide capital for the latter to generate more business, the companies told Reuters .
Hippo will take over the policies and sell them to consumers, while Ally will take the risk for them and put the cash aside – about $ 500 million initially. The agreement will double Hippo's underwriting capacity and give it more money to invest in improving its technology and services, President Rick McCathron said in a recent interview.
"As we are a fast growing company, it is very important for us to have sufficient underwriting capacity to support our growth," said McCathron.
Ally-backed policies will be offered under the partnership in ten states before rolling out nationally, the companies said.
"This relationship complements and diversifies the continued expansion of Ally's insurance business," said Mark Manzo, Ally's insurance president, in a statement.
So far, Ally's insurance offering has been limited to insurance for the auto industry. McCathron said there was potential for further collaboration with Ally, without giving details.
The partnership comes a week after Hippo began trading on the New York Stock Exchange after completing a merger with a blank check acquisition firm backed by Reid Hoffman and Mark Pincus, co-founders of LinkedIn and Zynga, respectively. Continue reading
Hippo will also announce a fronting carrier agreement with Austin, Texas-based insurance services company Incline P&C Group on Wednesday that will provide Incline customers with access to Hippo's home protection and maintenance services.
(Corrected throughout to show Hippo is selling the policies to consumers)
Reporting by David French in New York; Editing by Aurora Ellis
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