Private equity firm Centana Growth Partners has purchased a majority stake in First Connect Insurance Services, insurtech company Hippo’s digital platform for independent agents.
Aviad Pinkovezky, retaining his position as president, ascends to CEO following the acquisition.
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The initial investment surpasses $60m and also includes contributions from Pruven Capital, Cota Capital and Cross Creek.
It is aimed at propelling First Connect’s product development, market expansion and industry leadership in providing tech-driven solutions for independent insurance agents.
The acquisition is set to address the market challenges faced by independent agents in the US, who contribute significantly to the P&C insurance sector.
These agents encounter obstacles in offering a diverse range of insurance products due to the administrative complexities involved with carrier appointments.
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By GlobalDataFirst Connect’s technology-first approach is designed to streamline market access for carriers, enhance agent workflows and expedite the policy quoting process.
Its platform is designed to simplify the way independent agents interact with carriers and MGAs by offering a digital marketplace that simplifies discovery and access to more than 100 partners.
The platform’s Carrier Store and Appetite Finder tools are instrumental in connecting agents with carriers that match specific risk profiles, thus improving the efficiency of policy quoting and binding.
Additionally, its AI-driven validation for errors and omissions documents significantly cuts down compliance approval times, allowing agents to begin selling policies almost immediately.
Pinkovezky said: “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 are well positioned to scale to meet the increasing demand for our solution.”
The latest news coincides with Hippo’s results announcement for the third quarter of 2024 (Q3 2024), with revenue growing 65% year-over-year (YoY) to $95m and premium retention “more in-line with risk-retention”.
Consolidated total generated premium (TGP) in Q3 2024 was 21% higher than the prior year. Services and Insurance-as-a-Service (IaaS) accounted for 81% of TGP, increasing 46% and 12% YoY, respectively.
