Heritage partners with Slide

Regional personal residential insurer Heritage Insurance partnered with provider of homeowners’ and commercial residential coverage Slide Insurance .

According to the press release, the partnership provides Heritage with the opportunity to:

• Leverage Slide’s capabilities to improve underwriting and rating decisions.
• Further capitalize on strong agency relationships by generating commission income on policies that don’t meet Heritage’s underwriting criteria (e.g., due to geographic concentration).
• Participate in the insurtech sector without potentially significant capital requirements to develop similar capabilities internally.
• Based on current publicly traded insurtech valuations, potential to generate a meaningful capital gain, which, if realized, could provide additional funds for share buybacks or debt retirement.

Heritage will receive:

• Approximately 6% equity stake in Slide, an P&C carrier with an estimated $250 million post-money valuation, and warrants allowing it to purchase an additional equity interest at Slide’s pre-money valuation.
• Perpetual, royalty free license to certain aspects of Slide’s software.

Heritage will:

• Transfer ownership of Pawtucket, a dormant P&C carrier licensed in Rhode Island.
• Transfer ownership of First Access Insurance Group, a Florida-licensed MGA with minimal earnings.
• Provide access to historical claims and underwriting data.

“We’re excited to partner with Slide and our former colleague on this win-win opportunity. We believe this partnership will significantly accelerate development of our InsurTech capabilities, while providing us with an equity stake in an impressive startup that is developing cutting edge technology.” – Ernie Garateix, Heritage’s CEO.