Insurtech Company Hippo Scores $350 Million Investment
Palo Alto-based insurtech startup Hippo just announced that it’s raised another $350 million. The impressive raise comes exclusively from Mitsui Sumitomo Insurance Company, Limited and brings the company’s total funding to date to $709 million. Instead of being aside a letter, the round is being described as simply a “venture round.” The investment comes just four months after the company’s $150 million Series E — which already ranked among the largest FinTech deals of the year. As part of the deal, MS&AD Ventures managing partner Takashi Sato will join Hippo’s board of directors as an observer.
Hippo’s goal is to offer homeowners insurance at a better price. Additionally, the company’s policies are made to “ensure homeowners can replace or repair the items that run their home” and utilize the latest smart home technologies to help prevent small issues from becoming major claims. With the investment, Hippo hopes to accelerate its expansion nationwide. Specifically, their goal is to reach 95% of U.S. homeowners over the next year. Currently, the company offers policies in more than 30 states.
Announcing the investment, Hippo Insurance co-founder and CEO Assaf Wand said, “Mitsui Sumitomo is one of the best when it comes to risk management and shares our desire to leverage data and analytics to create better outcomes for homeowners. We’re excited to deepen our partnership and gain additional catastrophe modeling expertise from one of the world’s largest insurers.”
In turn, Mitsui Sumitomo Insurance Company, Limited VP Executive Officer Shinichiro Funabiki stated, “We value the innovation that Hippo brought to the home insurance space through its advanced classification of risk. We look forward to learning from one another through our strategic partnership, providing high value-added products and services to customers of both companies in the U.S. and Japan, and to continue to support Hippo, which quickly became a top insurtech in the U.S. home insurance space and is beloved by its customers.”
This major investment in Hippo comes during what’s been a pivotal year for insurtech. In July, Lemonade — which specializes in renters insurance but has expanded into other verticals such as pet insurance — went public. While it priced IPO shares at $29, the going rate for a share of the company is currently above $68.
By adding half a billion dollars in its coffers during 2020, Hippo Insurance seems well-positioned to reach its expansion goals for 2021. The wind is also to the company’s back as the insurtech industry has proven to be one of the hottest verticals in the FinTech sector this year. So while $350 million may sound big now, don’t be surprised if Hippo announces even larger rounds in the future.