Heritage announces a strategic partnership in InsurTech with Slide
CLEARWATER, Florida, November 26, 2021 / PRNewswire / – Heritage Insurance Holdings, Inc. (NYSE: HRTG) (“Heritage” or the “Company”), a super-regional property and casualty insurance holding company, today announced that it has entered into a strategic partnership with Slide , an InsurTech IARD startup company led by Bruce lucas, former Chairman and CEO of Heritage, offering him enhanced technological capabilities and enabling him to participate in the growth of the InsurTech sector.
The partnership offers Heritage the possibility of:
- Leverage Slide’s InsurTech capabilities to improve underwriting and rating decisions.
- Further capitalize on strong agency relationships by generating commission income on policies that do not meet Heritage‘s underwriting criteria (for example, due to geographic concentration).
- Participate in the InsurTech sector without potentially significant capital requirements to develop similar capabilities internally.
- Based on currently listed InsurTech valuations, potential to generate a significant capital gain, which, if realized, could provide additional funds for share buyback or debt repayment.
Heritage will receive:
- A stake of around 6% in Slide, an InsurTech IARD operator with a $ 250 million post-currency valuation, and warrants enabling it to purchase an additional participation in the pre-cash valuation of Slide.
- Perpetual license and royalty free on certain aspects of the Slide software.
The heritage goes:
- Transfer ownership of Pawtucket, a dormant damage carrier authorized to Rhode Island.
- Transfer ownership of First Access Insurance Group, a Florida-MGA approved with minimal income.
- Provide access to claims history and underwriting data.
Ernie Garateix, CEO of Heritage, said: “We are delighted to partner with Slide and our former colleague on this win-win opportunity. We believe that this partnership will significantly accelerate the development of our InsurTech capabilities, while providing us with an equity stake in an impressive startup. which develops cutting-edge technology. “
Financial information, including important announcements regarding Heritage, is posted regularly on investors.heritagepci.com.
Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance holding company. Through its insurance subsidiaries and an extensive network of experienced agents, the Company writes approximately $ 1.2 billion gross residential personal and commercial premiums across its multi-state footprint.
Statements contained in this press release that are not historical facts are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed here. Without limiting the generality of the foregoing, words such as “may”, “will”, “expect”, “believe”, “anticipate”, “intend”, “could”, “be able to” “,” Estimate “,” or “continue” or other negative variations thereof or comparable terminology are intended to identify forward-looking statements. Forward-looking statements in this press release include statements regarding the opportunities offered to Heritage by through the transaction with Slide, including whether Heritage will be able to leverage Slide’s InsurTech capabilities to improve underwriting and rating decisions, further capitalize on strong agency relationships, participate in the InsurTech sector with expenses in capital, generate a capital gain allowing the repurchase of shares or the repayment of the debt and if the InsurTech technology of Slide will be completed or delivered to Heritage when planned, and if the transaction ion or the relationship with Slide will accelerate the development of Heritage’s InsurTech capabilities. Relationships that could cause our actual results to differ from those expressed or implied herein include matters described from time to time by the Company in its filings with the Securities and Exchange Commission, including, but not limited to, the annual report of the Company on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission on March 9, 2021. Risks also include Slide’s inability to develop expected InsurTech technology or successfully grow its business or the value of Heritage’s stake in Slide is lower than expected. The Company assumes no obligation to update, modify or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise.
Arash Soleimani, CFA, CPA
Executive Vice President
SOURCE Heritage Insurance Holdings, Inc.