Sumitomo Mitsui Insurance to invest in US startup

Sumitomo Mitsui Insurance will invest USD350 million in US home insurance technology company Hippo, looking to tap the insurtech startup’s expertise in artificial intelligence to help policyholders minimise damages from fires and other disasters.

Sumitomo Mitsui will purchase convertible bonds from the company, which follows a separate investment in July made through Sumitomo Mitsui’s venture capital arm. The company will also enter into a strategic partnership with Hippo, valued at roughly USD1.5 billion.

Sumitomo Mitsui also wants to incorporate Hippo’s know-how on digital services, including on communicating with customers and accelerating the application process, according to a report in the Nikkei Asia. Mitsui Sumitomo also will reinsure Hippo policies, in a bid to expand its presence in the US market.