Hudson Structured Capital Management Ltd., undertaking its insurance and reinsurance investment business as HSCM Bermuda, has invested in home and auto insurtech firm Branch for a second time, participating in a $50 million Series B fund raise.
Previously, HSCM Bermuda co-led Branch’s $24 million Series A round, financing the technology-driven home and auto insurance company that aims to streamline the quote and bind process.
Now, HSCM Bermuda is one of the participants in a larger Series B that was led by specialist fintech and insurtech focused venture investor Anthemis and that also saw insurance and reinsurance sector participation from American Family Ventures, SignalFire and SCOR P&C Ventures.
It takes the total Branch has raised to $82.5 million to date.
“The industry is structurally flawed and it harms consumers. Complicated policies, rising costs, and marketing warfare all contribute to a vicious cycle that results in overpriced insurance,” said Steve Lekas, Cofounder and CEO of Branch. “Branch was built differently in order to break that cycle and introduce consumers to insurance that is simple to buy, offered in moments of convenience, and meaningfully less expensive.”
“It’s no coincidence that Branch is the first investment from our new growth fund; we are thrilled to support a company so aligned to Anthemis’ core values of authentic collaboration, virtuous cycle outcomes, and diversity and inclusivity. Branch is innovating on both tech and product design to build a 21st-century insurance company,” added Ruth Foxe Blader, Partner at Anthemis Group.
Branch has ambitious goals to expand into the $700 billion Property & Casualty industry in the US, aiming to reach some 80% of the U.S. population by the end of 2021.
Alongside investing in insurance-linked securities (ILS) and reinsurance more broadly, Hudson Structured invests in insurtech (insurance technology) companies 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.
Earlier this week we reported that Hudson Structured, investing as HSCM Bermuda, had participated alongside venture investors in a $100 million Series C fund raise for Embroker, a digital business insurance platform.