Filed by Reinvent Technology Partners Z
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
of the Securities Exchange Act of 1934
Subject Company: Hippo Enterprises Inc.
Commission File No. 001-39711
Date: March 4, 2021
Reuters
Hippo to go public in $5 billion merger with Mark Pincus, Reid Hoffman-backed SPAC
By Sohini Podder, Noor Zainab Hussain and David French
4 March 2021
Hippo Enterprises will go public
through a $5 billion merger with a blank-check firm backed by Silicon Valley heavyweights Reid Hoffman and Mark Pincus, in a sign of rising interest in the fast-growing insurtech sector.
The deal, announced on Thursday, comes when the COVID-19 pandemic has forced the insurance sector to rely heavily on
technology to reach customers, helping the insurtech sector, which uses artificial intelligence and big data.
Founded in 2015, Palo
Alto-based Hippo sells homeowners insurance online and the merger with special purpose acquisition company (SPAC) Reinvent Technology Partners Z will include a private investment of about $450 million and give it $1.2 billion in cash.
We were looking for the best partner to help us on the next stage of our journey, someone who had built businesses of massive scale, and you cant
find better partners for that than Mark and Reid, Hippo Chief Executive Assaf Wand told Reuters.
While the pandemic has focused the insurance
industry on the importance of technology, Wand noted the pace of consumers adopting digital channels to buy insurance has quickened in the last year.
The
total value of premiums generated by insurtech platforms will exceed $556 billion in 2025, compared with $250 billion in 2020, according to a study by Juniper Research.
Hoffman told Reuters that when they first raised the SPAC, they hadnt contemplated an insurtech investment but were impressed by Hippo and its holistic
approach to home protection.
As well as home insurance, Hippo offers maintenance services and smart monitoring devices to customers.
Hippos SPAC merger follows the recent deals by CCC Information and Metromile Inc.
Many insurtechs have also gone public, with Oscar Health, backed by Google parent Alphabet Inc, raising $1.2 billion on Tuesday. Insurance startup
Lemonade Inc also became a public firm last year.
SPACs are shell companies that raise funds through an IPO to take a private company public.