Hippo Strengthens Position as Insurtech Leader in Home Insurance
Company Closes $150 Million Series E Funding Round, Bringing Total Raised to $359 Million
PALO ALTO, Calif.–(BUSINESS WIRE)–#fundingnews—Hippo, the high-growth insurtech group that’s transforming home insurance, has proven that a deep focus on customer experience can transform an industry and drive growth. Hippo Enterprises closed $150 million in Series E funding, valuing its business at $1.5 billion post-financing. Hippo’s innovative home insurance model includes world-class customer experience and services that proactively identify and help to resolve risks for its consumers. In the past 12 months, the company has grown its total written premiums to $270 million, growing at 140 percent YoY.
Hippo welcomed FinTLV, Ribbit Capital, Dragoneer and Innovius Capital as new investors in the oversubscribed round, which had significant participation from existing investors. The funding will be used to accelerate the company’s expansion, including to reach 95 percent of the U.S. homeowner population in the next 12 months, make key hiring additions, invest in its successful technology operations and support the company’s proposed acquisition of a national insurance carrier.
“We set out to change the relationship between homeowners and home insurance by offering more value and services in each interaction with our customers,” said Assaf Wand, Co-founder and CEO, Hippo. “We’ve seen tremendous growth over the last three years since launch, by leveraging technology wisely and reimagining the customer experience. We’re developing a long-term relationship with our customers, in part by supporting our insurance customers with home maintenance and smart home devices – all of which help solve small problems before they become big headaches.”
For the majority of Americans, their home is their most valuable financial asset, and yet, more than 60 percent of U.S. homes are underinsured, leaving people’s financial future at risk. Hippo provides more accurate and affordable coverage by using technology and data integrations to develop a unique profile of a customer’s property during the onboarding process. The company actively reviews changes to a customer’s property over time, using thermal and satellite imagery and layers in AI, machine learning and public records to keep customers’ properties protected, year after year.
For protection inside the home, the Hippo smart home program, which offers eligible customers complimentary smart home devices at sign-up, has delivered more than 400,000 devices to date and helps alert homeowners to potential issues, like water leaks. When things do go wrong, Hippo’s one-of-a-kind claims process delivers an efficient service and repair experience for its customers that leverages highly vetted contractors and is supported every step of the way by Hippo’s empathetic claims concierge team.
Hippo began selling its policies to homeowners in 2017, which initially rolled out in California and is now available to more than 70 percent of the U.S. homeowners population across 29 states. Hippo expanded its product portfolio with products for landlords, available in nearly 15 states, and a product for new construction, which is available in 12 states and counting.
Hippo’s business has remained strong with a 60 percent increase in sales YoY in Q2 2020, as homeowners shelter in place and find new ways to use their properties. To ensure homeowners receive the home repair and maintenance help they needed to upkeep their homes and lives over the past five months, the company’s home maintenance group, Hippo Home Care, has provided free virtual telemaintenance services.
“We’ve watched Hippo transform the home insurance experience, from its proprietary underwriting technology to its delightfully refreshing customer experience, a rarity in the industry,” said Gil Arazi, Founder and Managing Partner, FinTLV, a leading insurtech-focused VC fund. “The value Hippo provides for consumers and the strides it has made towards the larger progression of the P&C insurance sector makes it the most compelling technology insurance company of its time.”
The company has committed to an aggressive hiring plan for its Palo Alto, California headquarters and its offices in Austin and Dallas, Texas. Hippo expects to increase its employee count by 100 people this year and will be expanding its Austin, Texas presence with a new Hippo ATX campus. Construction is underway and will hold up to 310 Hippo employees when it opens next year.
Additional existing investors participating in Hippo’s Series E fundraise include BOND, Comcast Ventures, Felicis Ventures, Fifth Wall, Horizons Ventures, ICONIQ Capital, Innovius Capital, Lennar Corporation, Pipeline Capital, Propel Venture Partners, RPM Ventures, Standard Industries, and Zeev Ventures. The round also includes investment from large international hedge funds and family offices.
Hippo Enterprises is on a mission to transform home insurance for the modern household. The company brings homeowners closer to a modern home insurance experience with an efficient online purchase experience using trusted data sources, a smart home device kit included with eligible policies and more available coverage for possessions like appliances, electronics and home offices. Hippo Insurance is part of Hippo’s family of companies that brings together home wellness and home insurance for today’s homeowners. Headquartered in Palo Alto, California, with insurance products 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. For more information, including licensing information, visit http://www.hippo.com.