Core Insights - The 2024 Housepower Report by Hippo reveals that U.S. homeowners are increasingly adopting proactive strategies to protect their homes and investments, with a focus on preventative care and home maintenance [1][3][4] Homeowner Financial Concerns - In 2024, 46% of homeowners spent over $5,000 on unexpected repairs, a rise from 36% in 2023, with common issues including water damage, roof problems, and door/window repairs [3][4] - 83% of homeowners faced unexpected repairs in 2024, nearly doubling from 46% in 2023, impacting their financial stability, as 47% reported budget strain due to these repairs [4] Home Maintenance Priorities - Homeowners prioritize maintenance to protect their primary financial asset, with 64% focusing on overall home condition, 46% on improving ROI, and 45% on preventing costly repairs [5] - Despite the emphasis on maintenance, nearly 25% of homeowners spent less than $1,000 on proactive seasonal maintenance in 2024, contrasting sharply with the $5,000 spent on unexpected repairs by nearly half of homeowners [6] Homeowner Regrets and Future Plans - 73% of homeowners expressed regrets about their home purchase in 2024, an increase from 63% in 2023, with top regrets including emergency planning and insurance reviews [7] - 59% of homeowners are considering moving in 2025 to better align with their financial and personal goals [8] Weather-Related Concerns - 28% of homeowners are concerned about extreme weather preparedness, up from 25% in 2023, with heightened risks reported for flooding (42%), wildfires (35%), and strong winds (30%) [9][10] - The U.S. experienced 24 billion-dollar climate and weather-related disaster events as of November 2024, indicating a growing need for home insurance and protection plans [10] Company Initiatives - Hippo offers tools and resources to help homeowners manage their properties confidently, including personalized maintenance checklists and home health insights through the Hippo Home app [11][13]

Core Insights - Hippo has appointed Andrea Collins as Chief Marketing Officer, returning to the company after previously serving as Vice President of Marketing from 2017 to 2022 [1][2] - Collins brings over two decades of marketing experience, having held significant roles in the insurance and technology sectors, including positions at Cowbell and Flyhomes [2][3] - The company aims to enhance its marketing strategies and deepen investments in distribution channels, particularly through its New Homes Program [4] Company Overview - Hippo focuses on proactive home protection, utilizing real-time data and smart home technology to safeguard homeowners' financial assets [5] - The company operates through various subsidiaries, including Hippo Insurance Services and Hippo Builder Insurance Agency, which are licensed property casualty insurance agencies [6]

Financial Data and Key Metrics - Total Generated Premium (TGP) grew 21% YoY to $368 million in Q3 2024 [16] - Revenue increased 65% YoY to $95 million, up from $58 million in Q3 2023 [18] - Net loss improved by 84% YoY to $8.5 million, driven by a 67 percentage point improvement in the HHIP net loss ratio and better operating leverage [27] - Adjusted EBITDA loss improved by 81% YoY to $7.5 million [28] - Cash and investments increased by $54 million QoQ to $545 million, driven by higher reinsurance collections and proceeds from the sale of a shell insurance carrier [29] Business Line Performance - TGP in the Hippo Home Insurance Program (HHIP) segment declined 18% YoY due to reduced exposure to high-CAT geographies [16] - TGP in the Insurance-as-a-Service segment grew 12% YoY, while the Services segment saw 46% TGP growth [16] - The Services and Insurance-as-a-Service segments accounted for 81% of total TGP, up from 74% a year ago [17] - HHIP non-PCS accident period loss ratio improved by 15 percentage points YoY to 52%, driven by aggressive rate and underwriting actions [21] - Total HHIP accident period loss ratio improved by 22 percentage points YoY to 70% [23] Market and Geographic Performance - The company expanded its New Homes program in California, Florida, and Texas, adding new builder partners Perry Homes and Van Daele [10] - By year-end, the company expects to provide insurance access for nearly 50,000 new homes annually in these states [11] - The company has access to approximately 200,000 new homes annually through existing partners, with an addressable market of 1.5 million new homes expected in 2025 [37] Strategic Direction and Industry Competition - The company sold a majority stake in First Connect Insurance Services for $48 million, with potential additional proceeds of up to $12 million based on performance targets [11][31] - The transaction allows the company to focus on its core business while enabling First Connect to invest in its growth [12][32] - The company repurchased and retired 957,242 shares, representing 3.8% of total shares outstanding, using proceeds from the First Connect sale [33] - The company is prioritizing the remediation of its legacy HHIP portfolio while accelerating growth in new builder channels [45] Management Commentary on Operating Environment and Future Outlook - Management highlighted significant improvements in loss ratios and operating leverage, driven by strategic investments and underwriting actions [8][15] - The company expects Q4 2024 revenue of $95 million to $99 million and adjusted EBITDA of $5 million to $6 million, despite the impact of Hurricane Milton [35] - Management remains optimistic about the company's path to profitability and future growth opportunities [13][49] Other Important Information - The company referred to non-GAAP financial measures such as TGP and adjusted EBITDA, with reconciliations provided in the shareholder letter [7] - The sale of First Connect will lower Q4 TGP by $50 million to $60 million and revenue by $1.5 million to $1.8 million, with a negligible impact on net loss and adjusted EBITDA [34] Q&A Session Summary Question: Entry into California, Florida, and Texas homebuilder markets - The company clarified that it is not entering these states but expanding partnerships with additional homebuilders in these regions [36] - The company has access to approximately 200,000 new homes annually and expects an addressable market of 1.5 million new homes in 2025 [37] Question: Retention rates and loss ratios in the homebuilders' channel - Retention rates are high, with policies transitioning from new construction to traditional homeowner policies as homes age [38] - Early data suggests new homes have better loss ratios than older homes, particularly in non-weather losses [39] Question: Impact of First Connect sale on EBITDA - The sale has a small positive impact on adjusted EBITDA, as First Connect was not yet profitable [40] Question: Rationale for selling the shell insurance carrier - The sale involved a dormant asset, Mainsail, which was redundant given the company's other assets [43][44] Question: Growth outlook for HHIP and other segments - The company is focused on remediating the legacy HHIP portfolio while writing new business in areas with favorable loss ratios [45] - Growth in the Insurance-as-a-Service and Services segments is expected to outpace HHIP in the near term [46] Question: Share repurchase strategy - The company repurchased shares opportunistically using proceeds from the First Connect sale and may continue to explore buybacks as it approaches profitability [47]

Core Insights - Hippo Holdings Inc. reported a quarterly loss of $0.34 per share, significantly better than the Zacks Consensus Estimate of a loss of $1, and an improvement from a loss of $2.24 per share a year ago, representing an earnings surprise of 66% [1] - The company achieved revenues of $95.5 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 1.38% and showing a substantial increase from $57.7 million in the same quarter last year [2] - Hippo Holdings shares have increased approximately 159% since the beginning of the year, outperforming the S&P 500's gain of 25.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.48 on revenues of $102.5 million, and for the current fiscal year, it is -$4.60 on revenues of $371.55 million [7] - The estimate revisions trend for Hippo Holdings is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Insurance - Multi line industry, to which Hippo Holdings belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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 ...