Core Insights - Hippo is hosting its 2025 Investor Day to present its three-year roadmap and announce a strategic partnership with The Baldwin Group [1] - The company has transitioned from a monoline homeowners insurance carrier to a scalable hybrid fronting platform, aiming for sustainable and profitable growth [2] Strategic Partnership - Hippo has formed a strategic partnership with The Baldwin Group's subsidiary, Westwood Insurance Agency, to enhance its New Homes business [4] - The partnership will allow Hippo to access three times as many new construction homebuyers and will involve Baldwin purchasing Hippo's existing homebuilder distribution network for $100 million [5] Financial Targets - Hippo has set ambitious 2028 financial targets, including gross written premium exceeding $2 billion, adjusted net income greater than $125 million, and adjusted return on equity greater than 18% [4][5] Business Strategy - The company is diversifying its premium mix across personal and commercial lines through its integrated hybrid fronting platform, Spinnaker [5] - Hippo aims to capitalize on the growth in the home insurance market with its Hippo Homeowners Insurance Program, which offers a tech-forward customer experience [5] Operational Framework - The strategic framework is designed to deliver attractive returns through a diversified portfolio of risk anchored in core home offerings [4] - The partnership with Baldwin will enhance Hippo's capacity to support builder clients in a challenging insurance market [6]

Financial Data and Key Metrics Changes - In Q1 2025, revenue grew 30% year over year to $110 million, up from $85 million in Q1 2024 [13] - Adjusted EBITDA loss was $41 million, a $21 million increase compared to Q1 2024, with $45 million of expenses related to the LA wildfires [16][17] - Net loss for Q1 was $48 million, a $12 million increase from Q1 2024, but would have improved by $33 million without the impact of the wildfires [16] Business Line Data and Key Metrics Changes - The Hippo homeowners insurance program saw a 35% year over year increase in gross written premium from homebuilder partners [7] - Insurance as a Service revenue grew 91% year over year to $39 million, driven by a 27% increase in gross earned premium [13] - HHIP revenue grew 12% year over year to $62 million, supported by improvements in reinsurance structure [14] Market Data and Key Metrics Changes - Written premium outside of HHIP increased 21% year over year, indicating diversification in business lines [9] - The HHIP gross loss ratio increased 41 percentage points year over year to 121%, primarily due to the LA wildfires [14][15] Company Strategy and Development Direction - The company is preparing to expand new business in the HHIP program after reducing written premium from existing homes in catastrophe-prone areas [8] - Plans to raise an additional $50 million in surplus notes to support growth in the Spinnaker platform, which has shown consistent profitability [10] - The company aims to generate net profit by the end of 2025, with a focus on revenue growth and improved underwriting performance [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving net profit by Q4 2025, driven by higher premium retention and improved loss ratios [18] - The impact of the LA wildfires was acknowledged, but management emphasized that the new homes channel remained unaffected [12][16] - The company is optimistic about its long-term growth trajectory and plans to share a three-year roadmap at the upcoming Investor Day [11] Other Important Information - The company is focused on reducing fixed expenses through investments in infrastructure and automation, which will support future operating leverage improvements [10] - As of Q1, cash and investments decreased by $42 million to $528 million, primarily due to payments related to the LA fires [17] Q&A Session Summary Question: What will be the cost of the surplus note being raised? - The rate on the surplus note is approximately 9.5%, which is considered favorable for the company [23][24] Question: Will the capital from the surplus note fund the HHIP program or just Spinnaker? - The primary driver for raising the note is to fund the Spinnaker platform, but it will also support growth in the HHIP portfolio now that risks have been reduced [26][27] Question: How does the company view tariffs and their impact on new home sales? - The company can adjust coverage and premiums automatically at each renewal, ensuring adequate protection for policyholders despite material inflation [32][34] Question: When does the company expect to achieve EBITDA profitability? - The company is guiding for net income profitability in Q4 2025 and expects adjusted EBITDA to improve throughout the year [36][38] Question: Does the EBITDA loss include the assessment from the Fair Plan? - Yes, the $45 million loss includes the Fair Plan assessment, with $12 million attributed to Spinnaker non-HIPPO programs [39][41]

Financial Data and Key Metrics Changes - In Q1 2025, revenue grew 30% year over year to $110 million, up from $85 million in Q1 2024, driven primarily by the Insurance as a Service and HHIP Home Insurance Program segments [12] - The company expects to finish 2025 with an annual run rate of more than $500 million in revenue and generating net profit [11][18] - Q1 net loss was $48 million, a $12 million increase compared to Q1 2024, with $45 million of this loss related to the LA wildfires [15] - Adjusted EBITDA loss for Q1 was $41 million, a $21 million increase year over year, with the LA wildfires contributing $45 million to this loss [16] Business Line Data and Key Metrics Changes - The Hippo homeowners insurance program saw a 35% year-over-year increase in gross written premium from homebuilder partners [6] - Insurance as a Service revenue grew 91% year over year to $39 million, driven by a 27% increase in gross earned premium [12] - HHIP revenue grew 12% year over year to $62 million, supported by improvements in reinsurance structure [12][13] - Written premium outside of HHIP increased 21% year over year, contributing to diversification [7] Market Data and Key Metrics Changes - The company reported that new homes built to modern codes are more resilient, which has led to compelling underwriting results [6] - The HHIP gross loss ratio increased 41 percentage points year over year to 121%, primarily due to the LA wildfires [13] - The HHIP non-PCS loss ratio improved, declining six percentage points year over year to 53% due to portfolio transformation efforts [14] Company Strategy and Development Direction - The company is preparing to expand new business in the HHIP program after reducing written premium from existing homes in catastrophe-prone areas [6][10] - Investments in infrastructure and automation are aimed at reducing fixed expenses and improving operating leverage [9] - The company plans to share a three-year roadmap and long-term financial targets at the upcoming Investor Day on June 12, 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating net profit by Q4 2025, supported by revenue growth and improved premium retention [17] - The impact of the LA wildfires is expected to diminish as underwriting and pricing actions take effect throughout the year [17] - Management highlighted the importance of the Spinnaker platform for growth and risk participation [9][23] Other Important Information - The company is in the process of raising a $50 million surplus note to support growth in the Spinnaker platform, with an expected rate of approximately 9.5% [20][21] - Q1 ending cash and investments decreased by $42 million to $528 million, primarily due to payments related to the LA fires [16] Q&A Session Summary Question: What will be the cost of the surplus note? - The rate on the surplus note is approximately 9.5%, which is considered favorable for the company [20][21] Question: Will the capital from the note fund the HHIP program or just Spinnaker? - The primary driver for raising the note is to fund the Spinnaker side of the business, but it will also support growth in the HHIP portfolio [23][24] Question: How does the company view tariffs and their impact on new home sales? - The company can adjust coverage and premiums automatically at each renewal, ensuring adequate protection for policyholders despite tariff impacts [28][30] Question: When does the company expect to achieve EBITDA profitability? - The company is guiding for net income profitability in Q4 2025 and expects adjusted EBITDA to improve throughout the year [32][34] Question: Does the EBITDA loss include the assessment from the Fair Plan? - Yes, the $45 million loss includes the Fair Plan assessment, with $12 million attributed to Spinnaker non-EPO programs [35][36]

Core Insights - Hippo reported a 30% year-over-year increase in Q1 revenue, reaching $110 million, driven by a 91% growth in IaaS revenue and a 12% increase in HHIP revenue [7][5] - The company experienced a significant increase in gross written premium, with a 35% year-over-year rise in its homebuilder channel and a 21% increase in written premium outside the Hippo Home Insurance Program [2] - Hippo announced a $50 million surplus note agreement to support the growth of diversified product lines via the Spinnaker platform, reflecting investor confidence in the company's growth trajectory [2][3] Financial Performance - The consolidated net loss attributable to Hippo increased by $12 million year-over-year to $48 million, primarily due to the impact of the LA wildfires, which contributed $45 million to the losses [8][7] - The HHIP gross loss ratio was reported at 121%, a 41 percentage point increase year-over-year, with the LA wildfires contributing 56 percentage points to this increase [7] - Operating expenses decreased by $7 million year-over-year, resulting in an 18 percentage point reduction in these costs as a percentage of revenue, from 48% in Q1 2024 to 30% in Q1 2025 [5] Strategic Initiatives - The company is focused on proactive customer support, particularly for those affected by the Los Angeles wildfires, as part of its long-term value drivers [2] - An Investor Day is scheduled for June 12, 2025, where senior leadership will present the company's strategic direction and long-term financial targets [3] - Hippo's cash and investments, excluding restricted cash, decreased by $42 million quarter-over-quarter to $528 million, largely due to losses from the LA wildfires [8]

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]

Financial Data and Key Metrics Changes - In Q4 2024, Hippo achieved positive adjusted EBITDA of $8.5 million, exceeding previous guidance and representing a $31 million improvement year-over-year [29] - Q4 net income was positive $44 million, an $86 million improvement compared to Q4 of the previous year, with $46 million of this improvement attributed to a one-time gain from the sale of a majority stake in First Connect [28] - Total generated premium (TGP) grew by 10% year-over-year to $295 million, with revenue increasing 58% year-over-year to $102 million [22][23] Business Line Data and Key Metrics Changes - The core HHIP homeowners insurance program saw a gross loss ratio of 73% for the full year 2024, with a non-cat PCS loss ratio under 45% in Q4 [15] - The Insurance as a Service segment experienced over 40% annual revenue growth, maintaining a net loss ratio of 39% [15][22] - The HHIP gross loss ratio improved by three percentage points year-over-year to 50%, while the HHIP non-PCS loss ratio improved by 20 percentage points to 43% [25] Market Data and Key Metrics Changes - The company reported an 8% decline in the Hippo home insurance program segment due to efforts to manage exposure to high catastrophe geographies [22] - The net earned premium as a percentage of gross earned premium in the HHIP business rose to 83% in Q4, up from 29% a year ago [24] 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][32] - The strategic focus includes maintaining high-quality underwriting standards while exploring new program opportunities [16][62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of recent wildfires in California, estimating preliminary pretax cat losses of approximately $42 million, but emphasized that losses were primarily from legacy policies [11][12] - The company remains optimistic about its position in 2025, expecting substantial improvements in operating income despite the short-term impact of 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 plans to provide more detailed guidance on financial projections during its Investor Day event on June 12 [49] 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 an attractive opportunity based on current market conditions [41][42] Question: Impact of early-year cat loss event on reinsurance protection - Management indicated that the existing reinsurance structure remains intact and the losses barely impacted the first layer of reinsurance [44][46] Question: Guidance for full year 2025 on bottom line basis - Management stated that detailed guidance would be provided during the Investor Day event, with some indications of operating expenses and revenue trends shared [48][50] Question: Update on California exposures and derisking efforts - Management clarified that losses from recent fires were not related to the new home business and emphasized ongoing efforts to reduce concentration exposures [56][58] Question: Competitive environment in Insurance as a Service - 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 noted improved efficiency in spending and indicated a disciplined approach to growth while aiming for net income positivity in 2025 [68][70]

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 ...