Hippo CEO Expects NYSE Itemizing To Drive Higher Dwelling Insurance – Reuters
NEW YORK, Aug 3 (Reuters) – Hippo Holdings Inc plans to change home insurance by using customer data to get insurance coverage faster and easier, Hippo CEO said in an interview.
The company, which has a valuation of $ 5 billion and went public on Tuesday through a blank check company, is one of a series of "Insurtech" listings attempting to poach established insurers.
"I want to double technology, data and more tech and more capabilities," said CEO Assaf Wand of the $ 638 million Hippo will receive from the listing.
Hippo's sales drive reflects companies like Geico Corp (BRKa.N) and Progressive Corp (PGR.N) who have made the auto insurance market more competitive.
To get there, Hippo plans to develop algorithms that accelerate policy offerings and create new products, Wand said.
Hippo is supported by Silicon Valley entrepreneurs Reid Hoffman and Mark Pincus. Founded in 2015, it also offers tenant insurance and products for other homeowner headaches that insurers traditionally don't cover, such as: B. Maintenance, security, repairs and finally the sale of the apartment.
For example, Hippo offers sensors that beep when water leaks under a kitchen sink so that a plumber can be called to prevent serious damage. This helps the homeowner, but it also reduces the amount Hippo would have to pay out in receivables. Outdoor motion detectors can also help prevent break-ins.
Hippo went public through Reinvent Technology Partners (RTPZ.N), its special acquisition company, and began trading on Tuesday.
Hippo shares rose 2.4% Tuesday morning to $ 10.025, according to the New York Stock Exchange.
Hippo's total written rewards rose from $ 142 million in 2018 to $ 405 million in 2020, the company said. It forecasts $ 544 million this year and $ 2.28 billion by 2025.
"Hippo has grown exceptionally quickly," said Tom Morton, senior analyst at S&P Global Market Intelligence. "The real estate market is so hot, that's a big part of its growth."
Other recently listed Insurtechs like Lemonade Inc (LMND.N) and Porch Group Inc (PRCH.O) have risen since they were listed.
But there are risks of a downward shift in the housing market, Morton said. And insurtechs, by and large, need steady profitability to attract investors, said Robert Le, analyst at PitchBook.
"High-growth insurtech companies with high claims ratios are risky," said Le.
Hippo bought property and casualty insurer Spinnaker Insurance Co last year and received licenses in all 50 states. It is currently sold in 37 states, reaching approximately 80% of US homeowners, and is expected to grow to 90% this year. Among the large population states, it has coverage in California, but not New York.
Reporting by Alwyn Scott in New York
Editing by Lauren Tara LaCapra, Matthew Lewis and Steve Orlofsky
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