Hippo Acquired Spinnaker Insurance Company

Spinnaker Insurance Company (“Spinnaker”) announced the sale to Hippo

• The transaction officially closed on August 31st, 2020

Spinnaker is a New Jersey-based national property and casualty insurer rated “A-” by A.M. Best

• Founded in 2015 by current management team; Spinnaker operates independently under Hippo
• Has ability to offer admitted insurance products in 50 states and the District of Columbia
• Utilizes program administrators and managing general agents to access niche markets
  • Focus on short-tail business (homeowners, renters, small comm.), specialty lines and fronting opportunities
• $208mm of direct written premiums in 2019 and policyholders’ surplus of $38mm as of 12/31/19(a)

Hippo is a Palo Alto-based high-growth managing general agent that’s transforming home insurance

• Founded in 2015, Hippo is now a publicly traded company
• Works exclusively with top-rated insurance partners; policies available to over 65% of U.S. homeowners
• Offers an efficient online purchase experience using trusted data sources
  • A smart home device kit is also included with every policy
• Hippo partnered with Spinnaker as its largest carrier platform since 2017
  • Spinnaker-backed programs available to consumers in more than 18 states

This transaction highlighted the alignment and strength of partnership between Hippo and Spinnaker

• Allowed Hippo to expand the geographical reach of its modern home insurance policies
• Facilitated the growth of Spinnaker’s value-added program platform

TCMA acted as financial advisor to Spinnaker; key roles and responsibilities included:

• Assisting in diligence coordination and in creation of diligence materials shared with Hippo
• Providing insights around key transaction terms & conditions
• Assisting in negotiating an optimal transaction outcome for Spinnaker
• Providing objective advice and acting as a confidant to the seller throughout the process

TigerRisk also provided assistance with the A.M. Best update and rating process