Ally Financial strikes home insurance partnership with Hippo

NEW YORK, Aug 11 (Reuters) – U.S. online bank Ally Financial (ALLY.N) has agreed to backstop home insurance policies provided by Hippo Holdings Inc , providing capital for the latter to generate more business, the companies told Reuters.

Hippo will underwrite the policies and sell them to consumers, while Ally will assume the risk for them and put aside the cash to back them – some $500 million to begin with. The agreement will double Hippo’s underwriting capacity and leave it with more money to invest in improving its technology and services, its President Rick McCathron said in a recent

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