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Hippo Enterprises Inc. (Palo Alto, Calif.), the parent company of startup homeowners’ insurer, has launched its IPO on the New York Stock Exchange, following its March 2021 announcement of its merger with special purpose acquisition company (SPAC) Reinvent Technology Partners Z formed by Reinvent Capital(New York). Hippo will trade under the ticker symbols “HIPO” and “HIPO.WS,” respectively.
The launch was colored by more than 80 percent of the capital raised by the SPAC being pulled by investors, according to Israeli business journal Calcalist. However, that development did not affect Hippo going public with its announced $5 billion valuation.
“We structured our deal so that we aren’t dependent on redemptions and can focus on the long term, and that’s exactly what we aim to do,” comments Rick McCathron, President, Hippo. “The fact of the matter is that we were IPO-ready and aren’t highly impacted by SPAC trends, including redemptions. We have $550M of institutional PIPE dollars, which says volumes about the support that investors have for Hippo’s business. With cash on hand, we have over a billion dollars in available capital, which will be committed to innovation in home insurance, pushing our proactive approach forward to develop the first home-protection platform.”
Founded in 2015, Hippo’s declared mission is to make homes safer and better protected by taking a proactive approach designed to prevent losses. Harnessing real-time data, smart home technology, and a growing suite of home services, the company describes its market role as creating the first vertically integrated, end-to-end home protection and insurance platform.
The company is pursuing the growing opportunity of the home insurance market, currently valued at approximately $105 billion, and expected to reach nearly $140 billion by 2025. Hippo launched as a startup home insurer unburdened by legacy technology to disrupting the industry and capturing market share through proactive and consumer-focused products and services. The company recently announced its entry into commercial property with a tailored homeowners association (HOA) product, which the company says brings broader protection for the HOA alongside a streamlined claims process and transcends into protecting the homeowner and their community.
“Today’s important milestone showcases the tremendous progress we’ve made in our pursuit to revolutionize home insurance through the lens of the homeowner,” comments Assaf Wand, Founder and CEO of Hippo. “We are excited to embark on this next phase of Hippo’s journey as we modernize the home insurance industry and bring joy back into homeownership.”
“We are thrilled to close our business combination with Hippo and look forward to this next chapter in transforming homeowner’s insurance with Hippo’s digital-first set of offerings,” comments Reid Hoffman, LinkedIn Co-Founder and Co-Lead Director, RTPZ. “Assaf and his world-class team are well positioned to modernize a massive market that is ripe for disruption through Hippo’s leading technology and insurance expertise.”