Heritage Announces Strategic InsurTech Partnership with Slide

Heritage Insurance Holdings, Inc., a super-regional property and casualty insurance holding company, announced that it has entered into a strategic partnership with Slide, a startup InsurTech P&C carrier led by Bruce Lucas, Heritage’s former Chairman and CEO, providing it with enhanced technological capabilities and allowing it to participate in the InsurTech sector’s upside.

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Partnership provides Heritage with the opportunity to:

• Leverage Slide’s InsurTech capabilities to improve underwriting and rating decisions.
• Further capitalize on strong agency relationships by generating commission income on policies that don’t meet Heritage’s underwriting criteria (e.g., due to geographic concentration).
• Participate in the InsurTech sector without potentially significant capital requirements to develop similar capabilities internally.
• Based on current publicly traded InsurTech valuations, potential to generate a meaningful capital gain, which, if realized, could provide additional funds for share buybacks or debt retirement.

Terms of the Partnership

Heritage will receive:

• Approximately 6% equity stake in Slide, an InsurTech P&C carrier with an estimated $250 million post-money valuation, and warrants allowing it to purchase an additional equity interest at Slide’s pre-money valuation.
• Perpetual, royalty free license to certain aspects of Slide’s software.

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Heritage will:

• Transfer ownership of Pawtucket, a dormant P&C carrier licensed in Rhode Island.
• Transfer ownership of First Access Insurance Group, a Florida-licensed MGA with minimal earnings.
• Provide access to historical claims and underwriting data.

Ernie Garateix, Heritage’s CEO, said, “We’re excited to partner with Slide and our former colleague on this win-win opportunity. We believe this partnership will significantly accelerate development of our InsurTech capabilities, while providing us with an equity stake in an impressive startup that is developing cutting edge technology.”