The Baldwin Group to acquire homebuilder distribution network from Hippo
The Baldwin Group announced that its indirect subsidiary Westwood Insurance Agency, has entered into an agreement to acquire from Hippo and its affiliates all the outstanding equity interests of the various entities comprising Hippo’s homebuilder distribution network for $100 million.
Hippo’s homebuilder distribution network generated revenues of approximately $29.2 million in the most recent trailing 12-month period and is expected to deliver approximately $7 million of adjusted EBITDA over the 12 months following the closing of the partnership, which is currently anticipated to occur on or around July 1, 2025.
Separate from the purchase, Millennial Specialty Insurance, The Baldwin Group’s managing general agency, has entered into a program administrator agreement and a claims administration agreement with an affiliate of Hippo on a new homebuilder program aimed at providing additional proprietary capacity for Westwood’s builder partners. Additionally, Hippo and its affiliates, including Spinnaker Insurance Company, have committed to provide capacity and reinsurance support for existing and potential future MSI programs.
“Through the acquisition of Hippo’s homebuilder distribution network, Westwood now provides an embedded insurance solution to 20 of the top 25 homebuilders2 across the country. The addition of Hippo’s builder product, along with MSI’s own product for new construction homes, gives Westwood even more capacity to support its builder clients in an otherwise challenging insurance market. This collaboration aligns with Westwood’s goal to ensure that obtaining insurance is the easiest part of buying a home.” – Jim Roche, President, The Baldwin Group and CEO, Underwriting Capacity and Technology Operations.
“As we continue to grow and innovate across the insurance value chain, we remain focused on maintaining and building strong relationships with our capacity partners, powering our continued insurance product innovation to support our clients amidst a rapidly evolving risk landscape. We look forward to our deepening relationship with the Hippo team and are excited about the opportunity to continue our growth trajectory via tech-enabled innovation.” – Trevor Baldwin, Chief Executive Officer of The Baldwin Group.
“This long-term agreement with The Baldwin Group allows us to focus on what we do best—risk identification and selection, while providing an opportunity to accelerate the growth of our New Home business through Westwood’s industry-leading homebuilder network. We [Spinnaker] are also excited to build on our decade-long support of Baldwin’s MSI Renters and MSI Homeowners programs, as we provide capacity to a broader range of Baldwin’s MGA programs.” – Rick McCathron, President and Chief Executive Officer of Hippo.
