Westwood Insurance Agency recently struck a deal to acquire Hippo Holdings’ home builder distribution network.
The network generated $29.2 million in revenue over the last year and is expected to deliver approximately $7 million adjusted EBITDA over the 12 months after closing. Through the acquisition, Westwood now provides an embedded insurance solution to 20 of the top 25 home builders across the country.
To understand what the acquisition means for builders and the evolving role of insurance in new-home construction, BUILDER spoke with Alan Umaly, president of Westwood Insurance Agency.
What made Hippo’s homebuilder distribution network such an attractive acquisition target for Westwood, and how does this align with your long-term growth strategy?
Through the acquisition of Hippo’s homebuilder distribution network, we’re excited to welcome new builders to the Westwood family. Westwood was founded by a home builder, and for more than 70 years, we have been committed to providing the best experience for our builder partners and their homebuyers. This partnership will give us access to Hippo’s insurance product, which is tailored for new construction homes and will provide an additional capacity option to Westwood’s growing list of builder clients.
With Westwood now serving 20 of the top 25 homebuilders, how do you plan to use this expanded network to better serve your builder partners?
Westwood’s mission is to help our builder partners and their buyers close on time, every time. This means providing a competitive home insurance solution, even in challenging insurance markets. With access to Hippo’s new construction product, Westwood now has another competitive option for buyers and more capacity to support its builder partners wherever they build homes. Coupled with Westwood’s embedded model that’s fast, easy, and transparent, it’s a win-win for builders and their buyers.
The insurance market has been described as challenging lately. How does this acquisition help Westwood and its builder clients navigate current market conditions, particularly around capacity and pricing?
The acquisition places Westwood in a stronger position by adding a purpose-built insurance product for new construction homes to our offering. Ultimately, we’re making it easier for builders to deliver a streamlined, worry-free closing experience at a time when every point of friction can threaten the deal.
For builders working with Westwood, how does this acquisition change their role in the insurance process?
This acquisition makes the insurance process even easier for builders and their buyers. Over time, we’ll gain access to Hippo’s new insurance product tailored for new construction homes. That product will complement our existing insurance solutions, giving us more options to meet a wide range of buyer needs. When you combine that expanded offering with our streamlined technology and operational backbone, it significantly enhances the customer experience.
Is there anything else about this partnership, or the future of insurance in the homebuilding industry, that you believe is important for builders to know right now?
Don’t treat insurance as an afterthought. It’s often the final step in the home buying process, but it can have a big impact on whether a deal closes smoothly, or at all. Builders who partner with Westwood can offer insurance quotes early in the buyer’s journey, which brings much-needed clarity around monthly costs and reduces the chance of surprises at closing. When handled proactively, insurance becomes a differentiator, not a hurdle.
