3 Things – Earnings, Hippo Commercial & Ethos $100M – 7/23/2021

Hi All!  This week we are following big Insurer earnings, Hippo entering commercial lines and a $100M raise in the life space.  Here are the three things we learned this week:


Notable Q2 Earnings

Two interesting earnings reports this week for Q2 2021.  The great re-opening is in full swing and companies across the board are showing strong earnings as the economy grows.  Travelers shows strong growth but mentioned they remain concerned about social inflation.

WR Berkley tells a similar story, giving credit to rate adequacy and strong premium growth as contributing factors.  We expect to see more strong earnings as the season continues showing the industry remains healthy but will be watching to see if there are more lockdowns or CATs that provide headwinds as we finish the year.


Hippo Enters Commercial Space

Homeowner’s focused and newly SPAC-public Hippo is entering into commercial lines.  A smart move, the first offering is for Homeowner’s Associations and looks like a natural fit with their current products.  It will leverage cat modeling, satellite imagery and IoT sensor data.  They should be able to build on this offering as they gain experience in commercial lines and which should be more profitable lines that are easier to segment.


Ethos Life Raises $100M

Ethos Life, an insurtech startup in the life space, raised $100M from a single investor, the high profile Softbank Vision Fund.  There have been far less $1B+ valued life-related insurtechs and the space appears ripe for disruption.  Ethos will be one to watch as they use data to streamline the underwriting process and could be embedded in other financial products and offer different related products like occupational accident.

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