SAN JOSE, Calif., May 7, 2025 /PRNewswire/ -- Hippo (NYSE: HIPO), the home insurance group focused on proactive home protection, today announced its consolidated financial results for the three months that ended March 31, 2025."We delivered on two of our most important objectives as a company. We proactively supported customers affected by the Los Angeles wildfires and further advanced the key long-term value drivers in our business," said Hippo President and CEO Rick McCathron."Our homebuilder channel, whi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. Commission file number 001-39711 HIPPO HOLDINGS INC. (Exact name of registrant as specified in its charter) One Almaden Blvd., Suite 400 San ...

hippo ES 01 2025 LETTER TO SHAREHOLDERS Loss Ratios Higher YoY, driven by the LA wildfires Letter to Shareholders | 01 2025 hippo KEY HIGHLIGHTS FROM 01 Top-line Growth Continues Improving Operating Leverage Investments in operational efficiencies continued to pay . off as fixed expenses (S&M, T&D, and G&A) declined by $7m while revenue increased by $25m YoY, resulting in an 18pp decrease YoY in these costs as a percentage of revenue, from 48% of revenue in Q1'24 to 30% in Q1'25 Underlying improvement in pr ...

Financial Results Announcement - Hippo will release its first quarter financial results after market close on May 7, 2025 [1] - A conference call and live webcast for analysts and investors will take place at 5:00 PM ET / 2:00 PM PT on the same day [1][3] - A shareholder letter with the financial results will be available on the company's investor relations website prior to the conference call [1] Investor Day - The company will host an Investor Day on June 12, 2025, in New York City [2] - The event will feature presentations and Q&A sessions with Hippo's senior management regarding long-term growth strategy and financial goals [2] - Attendance is by invitation only, with more information to be provided closer to the event date [2] Company Overview - Hippo focuses on proactive home protection, safeguarding customers' financial assets through real-time data and a suite of home services [3] - Operating subsidiaries include Hippo Insurance Services, Hippo Builder Insurance Agency, Hippo Home Care, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company, and Wingsail Insurance Company [3] - Hippo Insurance Services and Hippo Builder Insurance Agency are licensed property casualty insurance agents with products underwritten by various affiliated and unaffiliated insurance companies [3]

Financial Data and Key Metrics Changes - In Q4 2024, Hippo achieved positive adjusted EBITDA of $8.5 million, a $31 million improvement year-over-year [29] - Revenue for Q4 2024 increased 58% year-over-year to $102 million, up from $64 million in Q4 of the previous year [23] - Q4 net income was positive $44 million, an $86 million improvement compared to Q4 of last year [28] Business Line Data and Key Metrics Changes - The total generated premium (TGP) grew by 10% year-over-year to $295 million, driven by a 22% increase in the Insurance as a Service segment [22] - The Hippo home insurance program segment experienced an expected decline of 8% due to efforts to manage exposure to high catastrophe geographies [23] - The HHIP gross loss ratio improved to 50%, while the HHIP non-PCS loss ratio improved to 43%, reflecting significant operational changes [25] Market Data and Key Metrics Changes - The company reported a gross loss ratio of 73% for the full year 2024, with a non-cat PCS loss ratio of under 45% in Q4 [15] - The HHIP/PCS cat loss ratio was 7% during Q4, an increase of 17 percentage points year-over-year, primarily due to prior accident period reserve releases [26] Company Strategy and Development Direction - Hippo is focused on expanding its network of partners and enhancing relationships with existing partners, particularly in the new homes channel [17] - The company aims to turn net income profitable by the end of 2025, with a revenue guidance increase to $465 million for 2025 [31] - The strategic focus includes maintaining high-quality underwriting standards while exploring new program opportunities [62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of recent wildfires in California, estimating pretax catastrophe losses of approximately $42 million, but emphasized that these losses were primarily from legacy policies [11][12] - The company remains optimistic about its position in 2025, expecting substantial improvements in operating income despite short-term impacts from the wildfires [18] - Management expressed confidence in achieving continued improvements in gross and net loss ratios in 2025 [32] Other Important Information - The company announced a leadership change, with Guy Zeltser appointed as the new Chief Financial Officer effective March 10 [36] - Hippo's cash and investments increased by $25 million to $571 million, driven by positive cash flow and proceeds from the sale of a majority stake in First Connect [30] Q&A Session Summary Question: Strategy behind the sale of Eaton Fire subrogation rights - Management confirmed the sale was not due to liquidity needs but rather a strategic decision based on current market conditions and potential recovery values [41][42] Question: Impact of early-year catastrophe loss event on reinsurance protection - Management indicated that the losses barely impacted the existing reinsurance structure, which remains intact [44][46] Question: Guidance for full year 2025 on bottom line basis - Management stated that detailed guidance would be provided during the upcoming Investor Day event on June 12 [48][50] Question: Update on California exposures and derisking efforts - Management reassured that losses from recent fires did not affect the new home business and emphasized ongoing efforts to reduce concentration exposures [56][58] Question: Competitive environment in Insurance as a Service and growth outlook - Management expressed confidence in the quality of their programs and partnerships, indicating a strong pipeline for growth [62][64] Question: Sales and marketing spend and seasonality into 2025 - Management highlighted improved efficiency in spending and indicated a disciplined approach to future marketing investments [68][70]

Hippo Holdings Inc. (NYSE:HIPO) Q4 2024 Earnings Conference Call March 6, 2025 8:00 AM ET Company Participants Mark Olson - Director, Corporate Communications Richard McCathron - President and Chief Executive Officer Stewart Ellis - Chief Financial Officer Conference Call Participants Thomas McJoynt-Griffith - KBW Andrew Andersen - Jefferies Operator Hello, and welcome, everyone, to the Hippo's Fourth Quarter '24 Earnings Call. My name is Maxine, and I'll be coordinating the call today. [Operator Instructio ...

PALO ALTO, Calif., March 6, 2025 /PRNewswire/ -- Hippo (NYSE: HIPO), the home insurance group focused on proactive home protection, today announced its consolidated financial results for the three months that ended December 31, 2024."Hippo delivered $8.5 million in positive adjusted EBITDA in Q4 2024, surpassing all expectations," said Hippo President and CEO Rick McCathron. "A nearly 30-point improvement in our gross loss ratio in 2024 and the further streamlining of our operations contributed to our most ...

Investment Risks - The company's investment portfolio is primarily exposed to interest rate changes, with significant holdings in debt securities, treasury bills, municipal bonds, and mortgage- and asset-backed securities [254]. - Interest rates increased significantly in 2022 and 2023, which could lead to declines in the value of fixed income securities, depending on the duration and magnitude of interest rate increases [254]. - The company faces risks related to potential defaults or impairments in its investment portfolio, which could negatively impact net investment income and result in realized investment losses [255]. - Valuation uncertainties increase in illiquid markets, raising the risk that the estimated fair value of securities may not reflect actual transaction prices [256]. - The investment portfolio is at risk of default or impairment due to the financial condition of issuers, which could lead to realized investment losses [255]. - The company may face increased valuation uncertainties in illiquid markets, affecting the estimated fair value of securities held in the portfolio [256]. - The investment policy includes parameters for maximum percentages of investment in certain securities and minimum levels of credit quality [259]. Stock Performance and Compliance - The company executed a 1-for-25 reverse stock split on September 29, 2022, to comply with NYSE listing standards after receiving a notice of non-compliance due to the average closing price being below $1.00 per share [264][265]. - The market price of the company's common stock may be highly volatile, influenced by various factors including operating performance, market conditions, and investor sentiment [266]. - The company may face challenges in maintaining compliance with NYSE listing standards, which could affect liquidity and market price of its securities [263]. - The average closing price of the company's common stock was less than $1.00 per share over a consecutive 30-trading day period, leading to a notice from the NYSE regarding non-compliance with listing standards [264]. - A 1-for-25 reverse stock split of the company's common stock was executed on September 29, 2022, to regain compliance with NYSE listing standards [265]. - The company may face significant volatility in the market price of its common stock, influenced by various factors including operating performance and broader market conditions [266]. - The company’s stock may not have an active trading market, making it difficult for stockholders to sell shares at attractive prices [262]. - The company’s stock price could materially decline if analysts cease coverage or change their recommendations negatively [268]. Dividend Policy - The company does not currently expect to pay any cash dividends on its common stock for the foreseeable future, intending to retain future earnings for business operations and expansion [288]. - The ability to pay dividends is dependent on the earnings and distributions from subsidiaries, which may be restricted by future credit agreements or debt securities [289]. - The company does not anticipate paying cash dividends in the near future, with any future dividend decisions dependent on various financial factors [288]. - Dividend payments from the company's insurance subsidiaries are restricted by state laws, which could limit the funds available for the parent company [286]. Legal and Compliance Challenges - The company faces significant legal, accounting, and compliance costs associated with being a public company, which may strain resources and divert management's attention [291]. - The company may be subject to regulatory actions if unable to comply with public company obligations, which could negatively impact stock price and investor confidence [292]. - The company is subject to significant legal and financial compliance costs as a public entity, which may strain resources and divert management's attention [291]. - The company is required to comply with state insurance laws for any change of control, which may delay or prevent acquisitions [272]. - The company may face increased costs and challenges in obtaining insurance due to compliance with public company regulations [292]. Management and Governance - The management team has limited experience managing a publicly traded company, which could affect business operations and financial condition [293]. - The company’s Certificate of Incorporation includes anti-takeover provisions that could discourage acquisitions even if beneficial to stockholders [269]. - The company’s bylaws require indemnification of directors and officers, which may reduce available funds for third-party claims [276]. - The company maintains directors' and officers' liability insurance, but it may not be adequate to cover all liabilities incurred [278]. - The company is classified as an emerging growth company and will not require an independent audit of internal controls until it no longer qualifies, potentially impacting investor confidence [281]. - The company may face challenges in establishing effective internal controls, which could lead to material weaknesses and affect financial reporting accuracy [282]. Shareholder Concerns - Sales of a substantial number of shares by existing stockholders could significantly reduce the market price of the company's common stock [294]. - Anti-takeover provisions in the company's Certificate of Incorporation may discourage acquisitions that could benefit stockholders [269].

Financial Performance - Q4 revenue increased by 58% year-over-year to $102 million, with FY2024 revenue up 77% to $372 million[5] - Q4 net income attributable to Hippo was $44 million, compared to a net loss of $42 million in the same quarter last year[5] - Adjusted EBITDA for Q4 was positive $8.5 million, an improvement of $31 million year-over-year[43] - The company reported a net loss attributable to Hippo of $44.2 million for Q4 2024, compared to a net loss of $(42.3) million in Q4 2023[75] - Adjusted EBITDA for Q4 2024 was $8.5 million, a significant improvement from a loss of $(22.3) million in Q4 2023[71] - The company reported a loss before income taxes of $47.1 million for the three months ended December 31, 2024, an improvement from a loss of $39.0 million in the same period of 2023[89] Revenue Growth - Total Generated Premium (TGP) grew by 10% year-over-year to $295 million, with Insurance-as-a-Service segment growing by 22%[24] - Total Generated Premium for the year ended December 31, 2024, was $1,336.1 million, up from $1,134.3 million in 2023, indicating a strong growth trajectory[71] - Total segment revenue for the year ended December 31, 2024, reached $384.1 million, compared to $217.1 million in 2023, reflecting a growth of 76.9%[90] - Revenue surged by 58% to $102.0 million in Q4 2024 compared to $64.5 million in Q4 2023[92] - Hippo Home Insurance Program revenue more than doubled, increasing by 106% to $64.1 million in Q4 2024 from $31.1 million in Q4 2023[92] Loss Ratios and Improvements - HHIP gross loss ratio improved by 3 percentage points year-over-year to 50%, while the net loss ratio improved by 46 percentage points to 60%[5] - The HHIP non-PCS loss ratio improved to 43%, with a target of further improvements expected in 2025[7] - The gross loss ratio for Q4 2024 was reported at 45%, while the net loss ratio was 58%, showing significant improvement from previous years[71] - The Gross Loss Ratio for the year improved to 53% in 2024 from 71% in 2023, indicating better loss management[82] Cash Flow and Investments - Cash and investments increased by $25 million quarter-over-quarter to $571 million, driven by positive cash flow and proceeds from the sale of a majority stake in First Connect[47] - Cash flows from operating activities turned positive with a net cash provided of $47.5 million in 2024, compared to $(92.4) million in 2023[78] - The company achieved a net cash increase of $37.7 million in 2024, reversing a decrease of $(49.4) million in 2023[78] - Cash, cash equivalents, and restricted cash at the end of the period increased to $232.8 million in 2024 from $195.1 million in 2023[78] Future Outlook - The company aims to achieve positive net income by the end of 2025, despite short-term impacts from recent wildfires[13] - The company is on track to exceed its revenue target of $420 to $450 million for 2025, with a current annual run-rate of approximately $410 million[21] - The company has raised its 2025 revenue guidance to a range of $465 million, representing a 25% YoY growth rate from 2024 revenue on a GAAP basis[51] - The company expects to achieve positive net income by Q4 2025, driven by improvements in gross and net loss ratios, with a gross loss ratio expected to be less than 60%[52] Expense Management - Fixed expenses decreased by $8 million year-over-year, resulting in a reduction from 69% of revenue in Q4'23 to 35% in Q4'24[39] - Sales and marketing expenses for the year ended December 31, 2024, were $6.0 million, a decrease from $16.9 million in 2023, representing a reduction of 64.6%[90] - Total segment expenses rose by 12% to $87.7 million in Q4 2024 compared to $78.0 million in Q4 2023[92] - Services segment expenses decreased by 21% to $12.4 million in Q4 2024 from $15.7 million in Q4 2023[92] - Insurance-as-a-service segment expenses increased by 51% to $18.7 million in Q4 2024 from $12.4 million in Q4 2023[92] - Hippo Home Insurance Program segment expenses rose by 13% to $56.6 million in Q4 2024 from $49.9 million in Q4 2023[92] Market Strategy - The company plans to continue expanding its market presence and investing in technology and development to enhance its service offerings and operational efficiency[88]

Core Viewpoint - Hippo, a home insurance group, is set to release its fourth quarter financial results on March 6, 2025, and will host a conference call for analysts and investors on the same day [1] Financial Results Announcement - The fourth quarter financial results will be released before market open on March 6, 2025 [1] - A conference call and live webcast for analysts and investors will take place at 8am ET/5am PT on that day [1] - A shareholder letter with the financial results will be available on the company's investor relations website prior to the conference call [1] Conference Call and Webcast Information - Date: March 6, 2025 [2] - Time: 8:00 a.m. Eastern Time / 5:00 a.m. Pacific Time [2] - Dial-in number: +1 833 470 1428 with global dial-in numbers available [2] - Access code for the call: 827436 [2] - Webcast link: https://events.q4inc.com/attendee/922114957 [2] - A replay of the webcast will be accessible on the investor relations section of the company's website after the call [2] Company Overview - Hippo focuses on proactive home protection, utilizing real-time data, smart home technology, and a suite of home services [4] - The company operates through various subsidiaries, including Hippo Insurance Services and Spinnaker Insurance Company [4] - Hippo Insurance Services is a licensed property casualty insurance agent with products underwritten by affiliated and unaffiliated insurance companies [4]