Insurtech Shopping Spree
SPACs, private equity, and even a digital insurer are among the buyers.
Deals are heating up in the insurtech space.
Next Insurance is acquiring digital insurance agency AP Intego, which offers small-business insurance through platforms such as Intuit, Gusto, Square and Toast. AP Intego, whose products include pay-as-you-go workers compensation coverage, has captured nearly a quarter of the online payroll provider market to date. The deal follows Next’s first acquisition, the December-announced purchase of Juniper Labs, a provider of open data and underwriting technology. Next is very well funded after raising $500 million in venture capital over the last 16 months. Next has also reached an agreement with Amazon to allow Business Prime members access to small-business insurance, including general liability, professional liability, and workers compensation.
Home insurance startup Hippo is going public via a merger with a special purpose acquisition company (SPAC) co-led by internet entrepreneurs Mark Pincus and Reid Hoffman. The deal with Reinvent Technology Partners Z represents an enterprise value of $5 billion for the rapidly growing home insurance startup. Hippo, which offers insurance in 32 states, pairs coverage with smart home technology tools to prevent losses such as water damage, fire and break-ins. Hippo expects its products to be available to 95% of the U.S. population by the end of year, versus more than 70% currently.
Doma—formerly States Title—announced the title insurance startup is going public through a deal with publicly traded SPAC Capital Investment Corp. Doma uses machine intelligence to reduce title processing time to as little as one minute and accelerate closings in home sales. The deal values Doma at around $3 billion.
Insurtech program administrator Integrated Specialty Coverages is being acquired by global investment firm KKR. ISC, which uses AI and data analytics to deliver customer insurance programs, currently writes about $300 million of specialty premium annually in lines including property, construction, transportation and hospitality. Terms of the deal were not disclosed.
