PALO ALTO — Hippo Enterprises, a home insurance startup, has raised $350 million from Mitsui Sumitomo Insurance Company, Limited, a subsidiary of MS&AD Insurance Group Holdings, Inc. Takashi Sato, a managing partner of MS&AD Ventures, the corporate venture capital fund of MS&AD Insurance Group Holdings, will join Hippo’s board of directors as an observer.
The investment will support Hippo’s product roll out in additional states, to reach 95 percent of the U.S. homeowners population in the next year, as well as providing additional capital for its insurance and reinsurance companies. The investment solidifies the strategic partnership between the two companies, which began with MS&AD Ventures’ initial investment in Hippo’s Series E funding round in July, 2020.
“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,” said Assaf Wand, CEO and Co-founder of Hippo. “We’re excited to deepen our partnership and gain additional catastrophe modeling expertise from one of the world’s largest insurers.”
Hippo and Mitsui Sumitomo Insurance Company, Limited plan to sign a reinsurance treaty. Mitsui Sumitomo will take on a portion of risk to support Hippo’s Insurance Company, a national property and casualty insurer licensed in 50 states and rated A- (Excellent) by A.M. Best Company.
“We value the innovation that Hippo brought to the home insurance space through its advanced classification of risk,” said Shinichiro Funabiki, Director, Vice President Executive Officer at Mitsui Sumitomo Insurance Company, Limited. “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.”
Headquartered in Palo Alto, Hippo insurance products are available to over 70 percent of homeowners in the U.S., Hippo Insurance Services is a licensed property casualty insurance agent with products underwritten by various insurance companies.