Property/casualty insurer Topa Insurance Co. and Hippo Enterprises, an InsurTech MGA offering homeowners insurance, announced their mutual decision to end their three-year partnership.
The move comes after Hippo’s acquisition of Spinnaker Insurance Co., a national insurer licensed in 50 states, and is in keeping with Topa’s decision to concentrate on its commercial lines business over personal lines.
Hippo has partnered with Topa since 2017 to provide home insurance products in eight western states. Hippo’s insurance is now available in 31 states.
Hippo customer policies with Topa will be underwritten by Spinnaker, without any interruption, according to the firms.
“Hippo has been an excellent partner to Topa, and we have been very pleased with the growth of the business we have written together over the past three years,” said Topa President and CEO Michael Day. “The transition provides mutual benefit as we increase our focus on commercial line products where we see significant opportunities.”
“Topa has been instrumental in advancing the growth of our business to reach more homeowners,” said Rick McCathron, president of Hippo.
Hippo said it will continue to operate as managing general agency with its premiums underwritten by Spinnaker and other carriers. It said it is in discussions with additional carriers. The company plans to expand to 11 additional states by June 2021.
Hippo is also eying an initial public offering. The company closed a $150 million financing round in July. CEO Assaf Wand said the company will be ready to go public in 2021.
Hippo also owns Sheltr, a startup that provides home wellness checkups.
Topa, which is admitted in 22 states, will continue to offer its commercial auto, commercial package, and other casualty products through wholesale brokers and MGAs. Topa insures the cannabis industry and has plans to continue to expand this business into additional states.
In August 2019, Altamont Capital Partners signed an agreement to acquire Calabasas, Calif.-based Topa Insurance Group from its long-time owner, Topa Equities Ltd. While Altamont was to assume majority control, Topa Equities was to maintain a minority equity stake in the business. That deal was called off in May by mutual agreement. At the time, a Topa spokesperson told Insurance Journal that the deal had not been killed due to the COVID-19 pandemic. The spokesperson also said the company was not currently looking for another buyer.
*This story ran previously in our sister publication Insurance Journal.