Core Insights - Hippo reported a strong financial performance for Q3 2024, with a revenue increase of 65% year-over-year to $95 million, driven by a favorable mix-shift in its business model [4][5] - The company is focused on achieving profitability, with significant improvements in its loss ratios and operational efficiencies [2][5] - Hippo sold a majority stake in First Connect Insurance Services to Centana Growth Partners, allowing First Connect to pursue its growth independently while Hippo retains a minority stake [3] Financial Performance - Revenue increased by 65% YoY to $95 million, with premium retention aligning more closely with risk-retention [4] - Total Gross Premium (TGP) rose by 21% YoY, with Services and Insurance-as-a-Service (IaaS) contributing 81% of TGP [4] - The HHIP accident period loss ratio improved by 22 percentage points YoY to 70%, with the non-PCS loss ratio improving by 15 percentage points YoY to 52% [4] Operational Efficiency - Fixed expenses decreased by $17 million while revenue increased by $37 million YoY, indicating improved operational leverage [5] - Sales & Marketing, Technology & Development, and General & Administrative expenses collectively dropped from 89% of revenue to 36% YoY [5] - The net loss attributable to Hippo decreased by 84% YoY to $8.5 million, and adjusted EBITDA loss fell by 81% YoY to $7.5 million [5] Financial Strength - Hippo reported cash and investments of $545 million, excluding restricted cash, and a Spinnaker surplus of $216 million, up from $182 million a year ago [6] - The company achieved an $8 million gain on the sale of a shell insurance carrier [6]

Financial Performance - Total revenue for the nine months ended September 30, 2024, reached $270.2 million, up 86.0% from $145.2 million in the same period of 2023[11]. - Total revenue for the three months ended September 30, 2024, was $95.5 million, a significant increase from $57.7 million in the same period of 2023, representing a growth of 65.5%[11]. - Net earned premium for the three months ended September 30, 2024, was $70.6 million, compared to $32.9 million in the prior year, reflecting a growth of 114.5%[11]. - The net loss attributable to Hippo for the three months ended September 30, 2024, was $8.5 million, an improvement from a net loss of $53.1 million in the same period of 2023[11]. - Comprehensive loss attributable to Hippo for the nine months ended September 30, 2024, was $81.3 million, down from $230.9 million in the same period of 2023[11]. - The net loss attributable to Hippo for the nine months ended September 30, 2024, was $84.7 million, reflecting ongoing challenges in the market[79]. Assets and Liabilities - Total assets increased to $1,545.4 million as of September 30, 2024, compared to $1,524.7 million at December 31, 2023[10]. - Total liabilities rose to $1,215.3 million, up from $1,140.0 million at the end of 2023, reflecting an increase in loss reserves and unearned premiums[10]. - The accumulated deficit grew to $(1,319.2) million from $(1,234.4) million, highlighting ongoing financial challenges[10]. - Total stockholders' equity decreased to $330.1 million from $384.7 million, indicating a decline in shareholder value[10]. - The company's total financial assets amounted to $585.2 million as of September 30, 2024, compared to $543.9 million on December 31, 2023, reflecting a growth of 7.6%[36]. Cash Flow and Investments - Cash and cash equivalents increased to $191.2 million from $142.1 million, indicating improved liquidity[10]. - Cash provided by operating activities was $53.9 million for the quarter, a significant improvement compared to cash used in operating activities of $43.9 million in the same quarter last year[16]. - The net investment income for Q3 2024 was $6.2 million, up from $5.7 million in Q3 2023, indicating a growth of 8.8%[11]. - The total gross investment income for the nine months ended September 30, 2024, is $18.5 million, an increase from $16.9 million in the same period of 2023[29]. - The total short-term investments amount to $152.4 million, with a fair value of $152.5 million as of September 30, 2024[23]. Expenses and Cost Management - The company’s total expenses for the nine months ended September 30, 2024, were $344.7 million, a decrease from $368.7 million in the same period of 2023[11]. - Technology and development expenses for Q3 2024 were $7.0 million, a decrease of 41.0% from $11.9 million in Q3 2023[11]. - Stock-based compensation expense for the nine months ended September 30, 2024, was $29.3 million, down from $46.8 million in the same period of 2023, representing a decrease of approximately 37%[72]. - Adjusted operating expenses totaled $93.5 million for the three months ended September 30, 2024, compared to $95.5 million for the same period in 2023[77]. Premiums and Underwriting - Direct written premiums for the three months ended September 30, 2024, were $233.2 million, compared to $225.9 million for the same period in 2023, reflecting an increase of approximately 3.0%[52]. - The company retained approximately 85% of the premium and associated risk for business produced through its builder channel for policies effective in 2024, before purchasing catastrophic protection[48]. - The gross written premiums for the three months ended September 30, 2024, were $234.4 million, a slight increase from $229.5 million in the same period in 2023[56]. - The reserve for losses and loss adjustment expenses (LAE), net of reinsurance recoverables, increased from $110.4 million as of September 30, 2023, to $122.5 million as of September 30, 2024, reflecting a rise of approximately 11.9%[45]. Strategic Initiatives and Future Outlook - The company continues to focus on expanding its product offerings and enhancing customer satisfaction as part of its growth strategy[5]. - Future plans include expanding into new markets and product offerings, leveraging proprietary technology to improve underwriting accuracy and risk management[5]. - The company anticipates continued growth in its customer base and aims to enhance its brand and reputation through diversified distribution strategies[5]. - The company is focusing on expanding its Hippo Home Insurance Program, which contributed significantly to its revenue growth[79]. Shareholder Actions and Stock Performance - The Company authorized a share repurchase program of up to $50.0 million in March 2023, with $48.2 million remaining available for repurchase as of September 30, 2024[68]. - The total number of common shares increased from 24,148,308 on January 1, 2024, to 25,232,297 by September 30, 2024[13]. - The company has not declared or paid any dividends since inception, with common stock trading under the ticker symbol "HIPO" on the NYSE[59].

Financial Performance - Total Generated Premium (TGP) grew 21% YoY to $368 million, with Services and Insurance-as-a-Service (IaaS) segments representing 81% of TGP[12] - Revenue increased 65% YoY to $95 million, driven by higher premium retention and volume increases in the IaaS and Services segments[16] - Q3 net loss attributable to Hippo decreased by 84% YoY to $8.5 million, a $45 million improvement[24] - Adjusted EBITDA loss improved by 81% YoY to $7.5 million, reflecting a $31 million reduction[26] - Total revenue for Q3 2024 reached $95.5 million, compared to $57.7 million in Q3 2023, marking a 65.5% increase[45] - Net loss attributable to Hippo for Q3 2024 was $(8.5) million, significantly improved from $(53.1) million in Q3 2023[45] - Adjusted EBITDA for Q3 2024 was $(7.5) million, an improvement from $(38.4) million in Q3 2023[45] - Net loss for the nine months ended September 30, 2024, was $(75.5) million, a significant improvement from $(223.7) million in the same period of 2023[48] - Total revenue for the nine months ended September 30, 2023, was $145.2 million, with a breakdown of $32.8 million from services and $71.0 million from insurance-as-a-service[68] Loss Ratios and Underwriting Performance - HHIP accident period loss ratio improved by 22 percentage points YoY to 70%, with a net loss ratio improvement of 67 percentage points to 84%[21] - Gross Loss Ratio improved to 50% in Q3 2024 from 59% in Q3 2023, indicating better loss management[45] - Net Loss Ratio decreased to 73% in Q3 2024 from 111% in Q3 2023, reflecting improved underwriting performance[45] - HHIP Gross Loss Ratio (GLR) for FY 2023 was reported at 101%, with a significant improvement to 72% in Q3 2024[55] - HHIP GLR excluding PAY and PCS events improved to 53% in Q3 2024, indicating better risk management[55] Expenses and Cost Management - Fixed expenses decreased by $17 million, resulting in a decline from 89% of revenue to 36% YoY[23] - The company reported a significant improvement in operating leverage, with fixed expenses lowered while revenue increased by $37 million YoY[22] - Adjusted operating expenses for Hippo totaled $295.0 million for the nine months ended September 30, 2024, with significant costs in sales and marketing at $28.3 million[66] - Adjusted operating expenses for the three months ended September 30, 2024, totaled $93.5 million, a 7% increase from $87.6 million in 2023[69] - Stock-based compensation expense decreased to $29.3 million for the nine months ended September 30, 2024, from $46.7 million in 2023[48] Cash and Investments - Cash and investments increased by $54 million quarter-over-quarter to $545 million, driven by higher collections and proceeds from the sale of a shell insurance carrier[29] - Following the sale of a majority stake in First Connect, Hippo received approximately $48 million in cash proceeds and retained a 19.2% stake in the platform[30] - Net cash provided by operating activities was $53.9 million for the nine months ended September 30, 2024, compared to a cash outflow of $(43.9) million in 2023[48] - Cash, cash equivalents, and restricted cash at the end of the period increased to $230.9 million from $269.4 million in the previous year[48] - Net investment income for Hippo was $18.2 million for the nine months ended September 30, 2024, indicating a stable investment performance[66] - Net investment income for the nine months ended September 30, 2023, was $16.5 million, reflecting a decrease from previous periods[68] Business Development and Strategic Initiatives - The company expanded its New Homes program in California, Florida, and Texas, aiming to provide access to insurance for nearly 50,000 new homes annually[6] - Hippo sold a majority stake in First Connect Insurance Services for approximately $48 million, with potential additional proceeds of up to $12 million[7] - Q4 2024 guidance estimates revenue between $95 million and $99 million, with adjusted EBITDA projected to be positive between $5 million and $6 million[33] - The removal of First Connect from Hippo's financials is expected to lower Q4 TGP by approximately $50 to $60 million and revenue by approximately $1.5 to $1.8 million[33] Premium Growth - The collective premium from the Services and IaaS segments increased from 74% to 81% of total TGP YoY[15] - Gross written premium for the three months ended September 30, 2024, was $234.4 million, up 2.1% from $229.5 million in 2023[50] - Total generated premium increased by 21.2% to $368.0 million for the three months ended September 30, 2024, compared to $303.7 million in 2023[50] - Revenue from the Hippo Home Insurance Program surged by 111% to $61.1 million in Q3 2024, up from $28.9 million in Q3 2023[69] - The company experienced a 46% increase in total generated premium for the services segment, rising from $121.6 million in 2023 to $177.9 million in 2024[69] - The services segment reported a 14% revenue increase to $13.2 million in Q3 2024 compared to $11.6 million in Q3 2023[69] Assets and Liabilities - Total assets increased to $1,545.4 million as of September 30, 2024, compared to $1,524.7 million at the end of 2023, reflecting a growth of 1.4%[47] - Total liabilities rose to $1,215.3 million as of September 30, 2024, compared to $1,140.0 million at the end of 2023, marking a 6.6% increase[47]

Hippo Holdings Inc. (HIPO) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

Hippo Holdings Inc. (HIPO) shares soared 18.2% in the last trading session to close at $22.17. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.4% gain over the past four weeks.Growth in placements of policies for customers with third-party carriers and growth of existing programs boosted by higher risk retention with some of the programs.  should continue to drive solid performance of services and insurance segments.Leveraging ...

Shares of Hippo Holdings Inc. (HIPO) have gained 0.8% over the past four weeks to close the last trading session at $18.27, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $24.67 indicates a potential upside of 35%. The mean estimate comprises three short-term price targets with a standard deviation of $3.51. While the lowest estimate of $21 indicates a 14.9% increase from the c ...

PALO ALTO, Calif., Oct. 14, 2024 /PRNewswire/ -- Hippo (NYSE: HIPO), the home insurance group focused on proactive home protection, today announced the company's third quarter financial results will be released before market open on Friday, November 8, 2024. The company will host a conference call and live webcast for analysts and investors at 8am ET/5am PT on that day. A shareholder letter with the financial results will be accessible from the investor relations section of the company's website prior to th ...

PALO ALTO, Calif., Oct. 8, 2024 /PRNewswire/ -- Hippo (NYSE: HIPO), the home insurance group focused on proactive home protection, announced the appointment of William Malone, Vice President, Head of Agency today. The 25-year industry veteran will lead Hippo's sales, account management, and customer support functions, and brings a passion for coaching and mentorship. "We are thrilled to welcome such an accomplished sales leader to the pod," said Hippo President and CEO Rick McCathron. "His experience leadin ...

Perry Homes and Van Daele Homes join the Hippo New Homes Program PALO ALTO, Calif., Oct. 3, 2024 /PRNewswire/ -- Hippo (NYSE: HIPO), the home insurance group focused on proactive home protection, announced today that it will expand home builder access to its New Homes Program in California, Florida, and Texas. By the year's end, Hippo's New Homes Program expects to provide access to insurance for almost 50,000 additional new homes in the three states, which, according to the U.S. Census Bureau, accounted fo ...

Shares of Hippo Holdings Inc (HIPO, Financial) surged 4.52% in mid-day trading on Oct 2. The stock reached an intraday high of $17.27, before settling at $17.22, up from its previous close of $16.47. This places HIPO 32.46% below its 52-week high of $25.49 and 159.07% above its 52-week low of $6.65. Trading volume was 33,765 shares, 28.1% of the average daily volume of 120,337. Wall Street Analysts Forecast Based on the one-year price targets offered by 3 analysts, the average target price for Hippo Holding ...