Hippo acquires First Connect Insurance Services
According to recent filings submitted by Reinvent Technology Partners Z/Hippo, in December 2020, the home insurance MGA acquired First Connect Insurance Services , a wholesale P&C insurance provider for independent agents interested in gaining access to the “advanced quoting platforms that are provided by InsurTech companies,” for approximately $25 million.
One of Hippo’s executive officers – a member of Hippo’s board of directors and its President – Richard McCathron – was the President and CEO of First Connect Insurance services from 2012 to 2017 and owned greater than 10% of First Connect Insurance Services prior to the time of the transaction.
- Hippo paid McCathron $6.4 million for his equity interests in First Connect Insurance Services prior to the transaction.
- Hippo also entered into an agency aggregator agreement with First Connect and “incurred a total of $9.9 million and $7.2 million of expenses during the year ended December 31, 2020, and 2019 respectively, related to this agreement.”