NEW YORK (Reuters) – Mitsui Sumitomo Insurance Company, a subsidiary of Japan’s MS&AD Insurance Group, will invest $350 million in U.S. home insurance technology company Hippo Enterprises to fund its next stage of growth, the companies said in a joint statement on Tuesday.
Mitsui bought a convertible note in Hippo that will turn into an equity stake the next time it raises new funds, Hippo Chief Executive Officer Assaf Wand told Reuters in an interview.
MS&AD’s venture arm was part of Hippo’s Series E funding round that was announced in July, and the new investment – which is accompanied by a plan to sign a reinsurance agreement with Mitsui Sumitomo – builds on that partnership.
Hippo was valued at $1.5 billion in July, although Wand noted this figure was now outdated because of market developments and the growth of the business. He declined to disclose an updated valuation.