Hippo Enterprises has raised $350 million from Mitsui Sumitomo Insurance Co, a subsidiary of MS&AD Insurance Group Holding, Reuters first reported. The insurance startup said the funding will help it roll out products in additional states, with the goal to reach 95% of the U.S. homeowners population in the next year, as well as providing additional capital for its insurance and reinsurance companies.
- Backdrop: MS&AD Ventures, the corporate venture capital fund of Tokyo-based MS&AD Insurance, formed a strategic partnership with Hippo when it participated in a $150 million Series E funding in July. That round was led by FinTLV Ventures and gave Hippo a valuation of about $1.5 billion, SVBJ noted.
- Why it matters: Hippo and Mitsui Sumitomo said they plan to sign a reinsurance treaty in which the Japanese company will take on a portion of risk to support Hippo’s insurance company, a national property and casualty insurer.
- Heard on the Street: Hippo’s CEO Assaf Wand: “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.” [Reuters+SVBJ]