Intact Financial Corp has made a strategic investment in Metromile Inc, a car insurance technology company based in San Francisco. No financial terms were disclosed. Metromile aims to give customers more affordable car insurance and transparent pricing through a pay-per-mile insurance model. It also offers detailed vehicle diagnostics via a driving app. Intact, a Canadian property and casualty insurance provider, said it invested because it believes the company is “redefining the marketplace.” Launched in 2011, Metromile is backed by Felicis Ventures, First Round Capital, Index Ventures, NEA and SV Angel.
Canada’s Largest Provider of P&C Insurance, Intact Financial Corporation, Makes Strategic Investment in Metromile
Investment provides funding to accelerate Metromile’s growth and advance nationwide expansion
SAN FRANCISCO, Feb. 16, 2016 /PRNewswire/ — Today, Metromile, a pioneer in pay-per-mile car insurance in the United States, announced that Intact Financial Corporation (TSX: IFC) has made a strategic investment in Metromile. IFC is the largest provider of property and casualty insurance in Canada. The venture is in line with IFC’s long-term strategy to invest and partner with emerging and innovative businesses.
“Metromile is redefining the marketplace with its unique business model, innovations and smart technology offerings,” said Karim Hirji, Senior Vice-President, International & Ventures, Intact Financial Corporation. “This venture represents an exciting opportunity for Intact Financial to expand its core competencies which will ultimately enhance the customer experience.”
Metromile offers customers a pay-per-mile insurance option that saves low-mileage customers $500 on average each year. With 95 million low mileage drivers in the United States the company has an addressable market of more than $70 billion.
“At Metromile, we work to make owning a car easy and affordable for drivers,” said Dan Preston, CEO at Metromile. “In 2015, pay-per-mile insurance saved our customers an average of $500 per year, and the Metromile app helped customers diagnose their car issues, avoid thousands of parking tickets, and more. We are excited to partner with Intact Financial, who shares similar values in transparency, customer experience, and a technology-driven approach to insurance.”
Metromile currently offers pay-per-mile insurance in seven states including California, Oregon, Washington, Illinois, Virginia, Pennsylvania and New Jersey. Availability in these seven states means that 30 percent of drivers in the United States can now get car insurance coverage through Metromile.
Metromile also launched an innovative partnership with Uber earlier this year in California, Illinois and Washington and debuted an updated smart driving app experience including a new look and feel as well as data about trips, street sweeping alerts (in select cities), and parked location.
Since Metromile launched in 2011, the company has grown from a small team to more than 150 strong with headquarters in San Francisco and offices in Tempe, Ariz. and Boston. In the last few months, the company has also focused on growing its executive team, which included hiring Chief Financial Officer Joe Selsavage, Chief Marketing Officer James Moorhead and General Counsel John Orta as well as promoting former Vice President of Engineering, Jose Mercado, to Chief Technology Officer.
Policies are sold through Metromile Insurance Services LLC (the Managing General Agent for insurance policies) and are written by insurers in the National General Insurance Group.
For more information about Metromile, visit metromile.com or follow Metromile on Facebook, Twitter, and LinkedIn.
About Intact Financial Corporation
Intact Financial Corporation (www.intactfc.com) is the largest provider of property and casualty insurance in Canada with $7.3 billion in premiums. With over 11,000 employees, the company insures more than five million individuals and businesses through its insurance subsidiaries and is the largest private sector provider of P&C insurance in British Columbia, Alberta, Ontario, Québec and Nova Scotia. The company distributes insurance under the Intact Insurance brand through a wide network of brokers, including its wholly owned subsidiary, BrokerLink, and directly to consumers through belairdirect.
Metromile is revolutionizing car insurance through technology with its pay-per-mile insurance model. By offering affordable car insurance, transparent pricing based on the miles you actually drive, data to optimize how you use your car, and instant access to detailed vehicle diagnostics via the driving app, Metromile is transforming car insurance — and car ownership — to be more intelligent, seamless, and accessible than ever before. Metromile is expanding across the US, and currently empowering drivers in California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington. For more information, visit metromile.com.
Cautionary note regarding forward-looking statements
Certain statements included in this press release, including without limitation, expectations in relation to the benefits of the investment and the addressable market for low mileage drivers, are forward-looking statements. Forward-looking statements are based on estimates and assumptions made in light of experience and perception of historical trends, current conditions and expected future developments. Actual results could differ materially from these forward-looking statements as a result of various factors, including but not limited to the ability to execute business strategies, competition and general economic conditions. There can be no assurance that future developments will be as anticipated. While Metromile may elect to update these forward-looking statements at any time, it does not undertake to update any statement at any particular time or in response to any particular event.
Photo courtesy of Metromile Inc