Hudson Structured Capital Management Ltd., the insurance-linked securities (ILS), reinsurance- and transportation- focused investment manager, has doubled-down on its investment in auto insurtech marketplace provider DealerPolicy, participating in its $110 million Series C investment round.
Previously, Hudson Structured, doing its reinsurance related investment business as HSCM Bermuda, co-led a Series B round for DealerPolicy, helping it to secure $30m in funding to help it accelerate the development of its insurance platform for the auto industry and expand its team.
The $110 million Series C investment was led by the Growth Equity business of Goldman Sachs Asset Management (Goldman Sachs) with participation from existing investors including 3L Capital and HSCM Bermuda.
Interestingly, this investment is more insurance focused as well, in terms of how DealerPolicy will put the new capital raised to work.
DealerPolicy intends to build out a next-generation finance and insurance (F&I) offering for both dealers and car buyers, integrating automotive insurance online and at the point-of-sale.
“DealerPolicy has successfully pioneered the assimilation of personal insurance into the automotive retail process, in a unified and compliant manner,” said Goldman Sachs’ Paul Pate will join the company’s board of directors and is a Vice President in the Growth Equity business within Goldman Sachs Asset Management. “We’re thrilled to support the DealerPolicy team as they continue to transform the purchase of cars and insurance.”
DealerPolicy aims to embed insurance throughout the entire car shopping and ownership experience, working alongside major insurance carrier partners.
The company says it wants to triple its product and engineering teams over the next 12 months with new talent and increase investments in strategic partnerships.
“We started the company with the vision of providing a more convenient, transparent, and connected car-buying experience,” explained Travis Fitzgerald, Co-Founder and CEO of DealerPolicy. “The funding comes at a time when we’re seeing mainstream adoption of automotive insurance into dealer sales and F&I processes driven by consumer desire for new dealership practices. This investment will allow us to advance our next-generation F&I offering, which provides consumers with competitive coverage options and tangible savings, as well as greatly increases dealer profitability.”
For Hudson Structured, DealerPolicy fits with its vision of sourcing insurance and reinsurance linked returns for its investors from across the insurance market, in an efficient manner and capitalising on areas where traditional distribution routes are being disrupted.
Hudson Structured, which was established by ex-Goldman Sachs structured finance head Michael Millette, invests in insurtech as one of the range of ways it derives insurance and reinsurance-linked returns for its investors, from across the full range of market access points.