Heritage Insurance, a property and casualty insurance holding company, has announced a strategic partnership with insurtech startup Slide.
The partnership will see Heritage acquiring a 6% stake in Slide for an undisclosed sum.
Heritage seeks to leverage Slide’s technological capabilities to improve underwriting and rating decisions.
Slide uses artificial intelligence as well as Big Data to offer personalised offerings.
The tie-up will also give the insurer access to a perpetual, royalty-free license to Slide’s software.
Heritage noted that as per Slide’s current valuations, the deal could generate a meaningful capital gain, which could provide additional funds for share buybacks or debt retirement.
As part of the deal, Heritage will transfer ownership of Rhode Island-registered dormant P&C carrier Pawtucket and Florida-licensed MGA First Access Insurance.
Additionally, it will provide Slide access to historical claims and underwriting data.
Notably, Slide founder and CEO Bruce Lucas is Heritage’s former chairman and CEO.
Heritage CEO Ernie Garateix said: “We’re excited to partner with Slide and our former colleague on this win-win opportunity. We believe this partnership will significantly accelerate the development of our InsurTech capabilities while providing us with an equity stake in an impressive startup that is developing cutting edge technology.”
The announcement comes shortly after Slide raked in $100m in a Series A funding round co-led by Gries Investment Funds and Tampa Bay Ventures.
