Hippo Holdings Inc. (NYSE: HIPO) shares were surging 9.96% as of the last check today, reaching $29.80 on the U.S. stock charts. The upward momentum came in response to news of a significant asset sale agreement between Hippo Holdings and The Baldwin Group. This development signals a strategic shift in Hippo’s business focus and enhances The Baldwin Group’s footprint in the homebuilding insurance space.
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Strategic Move
The Baldwin Group announced that its indirect subsidiary, Westwood Insurance Agency LLC, has entered into a definitive agreement to acquire all outstanding equity interests in Hippo Holdings’ homebuilder distribution network. This transaction, referred to as “The Partnership” by The Baldwin Group, is designed to reinforce Westwood’s status as the premier insurance agency within the homebuilding industry.
Hippo’s homebuilder distribution arm generated approximately $29.2 million in revenue over the trailing 12 months. It is estimated to provide roughly $7 million in adjusted EBITDA in the 12 months following the closure.
Depending on customary closing conditions and regulatory approvals, the transaction is expected to close on or around July 1, 2025. Financially, the acquisition is anticipated to be neutral to Net Leverage and accretive to the 2026 pro forma adjusted diluted earnings per share.
Broader Collaboration to Expand Insurance Offerings
In a related development, Millennial Specialty Insurance, LLC (MSI), The Baldwin Group’s managing general agency, has entered into a Program Administrator Agreement and Claims Administration Agreement with a Hippo Holdings affiliate.
This new homebuilder program is intended to expand proprietary insurance capacity for Westwood’s builder clients. Hippo and its affiliates, including Spinnaker Insurance Company, will provide underwriting capacity and reinsurance support for MSI’s current and future initiatives.
A Forward-Looking Strategic Alliance
The collaboration offers mutual benefits: Hippo can refocus on its core competencies—risk identification and selection—while leveraging Westwood’s established builder network to accelerate the growth of its New Home segment.
For Westwood, the integration of Hippo’s and MSI’s insurance products enhances its ability to support clients in a challenging market, aligning with its mission to make home insurance a seamless component of the homebuying process.
