US home insurance group Hippo is set to double its underwriting capacity with the announcement of a new issuing carrier relationship with Ally Financial subsidiary and 50 state carrier, Motors Insurance Corp.
The deal will see Hippo Insurance Services become the group’s largest managing general agent (MGA) unaffiliated program to date.
This will be the first home insurance issuing carrier relationship for Ally and is essentially designed to enable Hippo to enhance its underwriting capabilities and deliver flexible rates.
The move expands Hippo’s book of business across multiple partners and substantiates the MGA portion of Hippo’s business separate from its carrier business through Spinnaker.
The new relationship will initially launch in 10 states and then roll out nationally.
“By working with Ally, we are bringing significant growth and diversification to our business, offering Hippo’s protective insurance products to more homeowners across the country,” said Rick McCathron, president at Hippo.
“Our innovative and proactive approach aligns perfectly with Ally’s customer-centric mission to serve the needs of the customer and help protect people’s financial future, which includes their most valuable financial asset: the home.
We’re thrilled to be working with such a prestigious financial institution and are excited to have their support as we build the home insurance company of the future.”
Hippo’s capital-light business model and transformational focus is seen as a perfect match with Ally’s desire to work with a highly diversified book of business.
“This relationship complements and diversifies the ongoing expansion of Ally’s insurance business,” said Mark Manzo, president of insurance, Ally Financial.
“Hippo’s innovative model and proactive approach to helping their customers protect their most important investment aligns with our commitment to be a relentless ally for all things financial.
“We’re excited to build on the investment from our strategic investment arm, Ally Ventures, and support Hippo’s national growth.”