Centana Buys Majority Stake in Hippo’s First Connect Insurance
Centana Growth Partners, a financial-services-focused growth equity firm, has acquired a majority stake in First Connect Insurance Services, formerly an indirect wholly owned subsidiary of Hippo Holdings Inc., in a $60 million deal.
Hippo said the majority stake was sold to Centana for about $48 million, with the opportunity for First Connect to earn additional proceeds of up to $12 million if it hits certain performance targets.
The deal follows Hippo’s acquisition of First Connect for approximately $25 million in December 2020.
The investment was led by Centana with participation from Pruven Capital, Cota Capital, and Cross Creek. The funding will enable First Connect to accelerate product growth and expand market penetration.
“The insurance market is increasingly volatile, with agents and carriers grappling with fragmented systems and changing underwriting processes,” said Sarah Kim, partner, Centana Growth Partners. “First Connect’s commitment to addressing the unique needs of independent agents caught our attention.”
First Connect, a digital platform for independent agents, offers a Carrier Store, allowing agents to access carriers, view coverage details, underwriting guides, and commission rates; an Appetite Finder that matches agents with carriers interested in specific risks; and AI-driven Validation for E&O documents, automating compliance checks.
Aviad Pinkovezky will continue as president and has been named CEO, following the closing of the deal.