Hippo, a provider of super-quick homeowners insurance, said it has pulled in a new $70 million financing round designed to fuel an ongoing expansion of its customer-focused online products and services.
‘The funding will be used to [accelerate] our growth,” Hippo CEO and co-founder Assaf Wand told Carrier Management via email. “Specifically, we’ll be growing our full-stack policy management system, launching into dozens of new states, and building new products for our business partners like builders and lenders.”
He added that Hippo will be “doubling down on our insurance team, including our sales, support, claims and underwriting teams – bringing on the same top caliber of talent to support our customer-centric approach to home insurance.”
Currently, Hippo employs 70 people, and Wand said that the number should double “in the next couple of years.”
Wand would not respond directly to a question about whether Hippo is profitable, noting instead that the company is “currently focused on growth and expansion to build a sustainable and profitable business in the future. ”
Hippo operates as a managing general agency, and its system is designed to help customers purchase homeowners insurance online in 60 seconds or less, with a savings of up to 25 percent. Coverage includes protection for appliances, consumer electronics and home offices. The company asserts it has grown rapidly and now operates in more than 11 states, with policies backed by “world-leading reinsurers.”
Fifth Wall, a follow-on investor in the round, facilitated and structured the partnership between Hippo and Lennar (a strategic limited partner in Fifth Wall) after co-leading the Series B, Hippo said. Through Fifth Wall, Hippo is able to quickly test and gauge validation from established builders, developers and technology companies. Hippo explained in its financing announcement that the money will help it focus on improving how customers buy “the right home insurance” even as it improves coverage and the customer experience.
With this latest $70 million financing round, Hippo joins an elite club of InsurTechs that have matured enough over the last year to raise substantial financing as they pursue national or even global expansions. These companies and financing rounds include Root ($100 million), Metromile ($90 million), Lemonade ($120 million) and Next Insurance ($83 million).
Source: Hippo