Centana Growth Partners Acquires Majority Stake in Hippo's First Connect Insurance Services
Strategic growth equity investment to allow First Connect to focus
exclusively on enhancing its online platform that digitally connects
independent agents and carriers
NEW YORK & PALO ALTO, Calif.--(BUSINESS WIRE)--November 08, 2024--
Centana Growth Partners, a growth equity firm specializing in the
financial services ecosystem, is pleased to announce that it has
acquired a majority stake in insurtech platform First Connect Insurance
Services, formerly an indirect wholly-owned subsidiary of Hippo Holdings
Inc. (NYSE: HIPO). Aviad Pinkovezky will continue in his role as
President and has been named CEO, post closing.
The initial investment, exceeding $60 million, is led by Centana with
participation from Pruven Capital, Cota Capital, and Cross Creek. This
funding will enable First Connect to accelerate product growth, expand
market penetration, and continue its efforts to be the industry-leading
insurtech platform, providing independent insurance agents with fast
access to carriers and cutting-edge, tech-driven workflows.
The market of independent agents (IAs) is growing, but the ability to
offer diversified insurance products that best suit the personal and
commercial needs of policy holders remains lacking. There are tens of
thousands of IAs producing hundreds of billions of dollars in premiums
in the U.S., yet carriers face significant challenges in directly
appointing and collaborating with these agents due to the administrative
burdens of vetting, onboarding, and monitoring them.
While market access is a long-standing problem for independent agents,
First Connect is addressing it with a tech-first approach that expedites
critical market access to carriers, enhances agent workflows, and
enables faster, more efficient policy quoting.
"The insurance market is increasingly volatile, with agents and carriers
grappling with fragmented systems and changing underwriting processes,"
said Sarah Kim, Partner, Centana Growth Partners. "First Connect's
commitment to addressing the unique needs of independent agents caught
our attention. The Company's strong unit economics, impressive growth
trajectory, and ambitious, talented team impressed us."
"Our partnership with Centana marks an exciting phase of growth for
First Connect, as we continue to harness the significant potential of
the U.S independent agent market," said Aviad Pinkovezky, CEO, First
Connect. "This investment allows us to double down on what matters most
to our agents and carrier partners, which is strengthening our product
and elevating our service potential. By expanding our team across
product, engineering, sales, and account management, we're well
positioned to scale to meet the increasing demand for our solution."
"Independent agents are the heart of the insurance industry -- but need
better tools to access the right carriers, grow their books and place
risks seamlessly. We also know from conversation with Pruven LPs
including Prudential, WTW, Lincoln, TIAA, Mutual of Omaha and others
that carriers need better tools to engage and manage this vital partner
channel," said Ramneek Gupta, Managing Partner of Pruven Capital. "First
Connect is revolutionizing insurance distribution with a tech-native
platform and we at Pruven Capital are excited to partner with the team
in their mission to help agencies turbocharge their growth."
In the U.S, independent agents represent nearly two-thirds of the
property and casualty (P&C) insurance market. First Connect offers
agents seamless access to a broader network of carriers and MGAs in an
easy-to-use digital platform, enabling independent agents to start
producing with carriers within hours, rather than months. What's more,
by integrating directly with carriers, First Connect reduces
administrative complexity, and accelerates the quoting and policy
binding process.
The platform includes:
-- Carrier Store: A marketplace with over 100 carriers and MGAs, offering
agents an easy way to discover and get access to those carriers, as well
review relevant information such as lines of business written, states
coverage, underwriting guides and commission rates.
-- Appetite Finder: A tool that helps agents identify carriers with appetite
for specific risks, providing a simplified path to quoting and binding
policies. Carriers benefit from being presented to agents to be
considered for specific risks that are well within their appetite.
-- AI-driven Validation: By implementing an AI-powered solution for
validating Errors & Omissions (E&O) documents, we've automated the
majority of the verification process, reducing compliance approval times
for new agents from weeks to just minutes, allowing agents to start
selling policies almost instantly.
About Centana Growth Partners
Centana Growth Partners is a specialized growth equity firm that invests
in the future of finance. Centana collaborates with companies across the
entire financial services ecosystem, from institutions to fintech
disruptors, to add strategic and long-term value to their portfolio
companies. Centana empowers entrepreneurs with a combination of capital,
network, and expertise to accelerate their growth. The Centana team taps
into decades of financial services expertise and insight to invest in
companies that bring real value and innovation to the industry. Visit
http://www.centanagrowth.com for more information.
About First Connect Insurance Services
First Connect Insurance Services is a digital platform designed to level
the playing field for independent agents by providing access to over 100
carriers and MGAs across home, auto, cyber, small business, life, and
specialty lines. First Connect is a licensed property casualty and life
insurance agent with products underwritten by various insurance
companies. For more information, visit www.firstconnectinsurance.com.
About Hippo
Hippo is protecting the joy of homeownership, helping to safeguard
customers' most important financial asset by harnessing the power of
real-time data, smart home technology, and a growing suite of home
services to deliver proactive home protection.
Hippo Holdings Inc. operating subsidiaries include Hippo Insurance
Services, Hippo Home Care, First Connect Insurance Services, Spinnaker
Insurance Company, Spinnaker Specialty Insurance Company, and Mainsail
Insurance Company. Hippo Insurance Services is a licensed property
casualty insurance agent with products underwritten by various
affiliated and unaffiliated insurance companies. For more information,
including licensing details, visit http://www.hippo.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241108146187/en/
CONTACT: Goldcomm for Centana
Corey Goldman
centana@goldcomm.co
416-322-2863
(END) Dow Jones Newswires
November 08, 2024 07:19 ET (12:19 GMT)
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