Core Viewpoint - Hippo Holdings Inc. is set to release its second quarter financial results on August 6, 2025, and will host a conference call for analysts and investors [1][2]. Group 1: Financial Results Announcement - The second quarter financial results will be released before market open on August 6, 2025 [1]. - A conference call and live webcast will take place at 8:00 a.m. ET / 5:00 a.m. PT on the same day [2]. - A shareholder letter with the financial results will be available on the company's investor relations website prior to the conference call [1]. Group 2: Company Overview - Hippo is a technology-enabled insurance group that utilizes Spinnaker, its hybrid fronting carrier, to diversify risk across personal and commercial lines [2]. - The company offers tailored, proactive coverage for homeowners through the Hippo Homeowners Insurance Program, leveraging deep industry expertise and strong underwriting capabilities [2]. - Hippo is positioned to adapt to changing market conditions and capitalize on market cycles with a flexible portfolio and disciplined risk management approach [2]. Group 3: Subsidiaries - Hippo Holdings Inc. includes subsidiaries such as Hippo Insurance Services, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company, and Wingsail Insurance Company [3]. - Hippo Insurance Services operates as a licensed property casualty insurance agent with products underwritten by various affiliated and unaffiliated insurance companies [3].

Financial Performance & Targets - Hippo exceeded its aggressive financial goals since the last investor day in 2022[17] - The company is targeting Gross Written Premium of over $2 billion by 2028[50], representing a Compound Annual Growth Rate (CAGR) of 25-28% from 2025[189] - Hippo aims to achieve Adjusted Net Income exceeding $125 million by 2028[50] - The company projects an Adjusted Return on Equity of 18%+ by 2028[50] - For Q2-Q4 2025 annualized, Hippo expects an Adjusted Net Income of $28-$32 million and an Adjusted Return on Equity of 8-9%[185] Spinnaker Platform Performance - Spinnaker platform achieved a Gross Written Premium of $618 million in FY2024[57] - The platform reported a Net Loss Ratio of 39% in FY2024[57] - Spinnaker platform delivered a 25% Return on Capital in FY2024, a significant increase from 12% in FY2022[57, 59] Hippo Home Insurance Program (HHIP) - Hippo Home Insurance is rapidly increasing net earned premiums while reducing loss ratio and driving profitability[27] - Hippo Home Insurance achieved an underwriting profit before overhead of negative $81 million in 2022, which improved to negative $7 million in 2024[28] - The HHIP Gross Loss Ratio excluding PAY Reserve Release improved from 73% in 2022 to 56% in 2024[28] - HHIP Net Earned Premium as a percentage of Gross Earned Premium increased from 6% in 2022 to 69% in 2024[28]

Summary of Hippo (HIPO) 2025 Investor Day Company Overview - **Company**: Hippo Holdings Group - **Event**: 2025 Investor Day held on June 12, 2025 - **Key Speakers**: Andrea Collins (CMO), Rick McAthron (CEO), Stuart Ellis (Chief Strategy Officer), Torben Ostergard (CEO of Spinnaker), Guy Zeltzer (CFO), Jesse Wilmot (CFO and COO of Spinnaker) Core Industry Insights - **Industry**: Insurance, specifically focusing on home insurance and hybrid fronting platforms - **Market Position**: Hippo is positioned as a tech-enabled insurance platform with a focus on underwriting and risk management Key Financial Highlights - **Previous Targets**: In 2022, Hippo set aggressive targets to achieve cash flow positivity and increase top-line revenue by over 3.5 times by the end of 2024 - **Current Performance**: Surpassed previous financial targets, with revenue guidance raised from $420-$450 million to $465-$475 million for the current fiscal year [12][13] - **Adjusted EBITDA Improvement**: Transitioned from a loss of $55 million in Q3 2022 to a positive adjusted EBITDA of $9 million, driven by improvements in underwriting profit and operational efficiency [11][14] Strategic Initiatives - **Business Transformation**: Shifted from a monoline homeowners company to an integrated platform with diversified lines of business, including casualty and new construction [30] - **Hybrid Fronting Platform**: Spinnaker is highlighted as a leading hybrid fronting platform, with a focus on geographic and product line diversification to reduce earnings volatility [33][34] - **Partnership with Baldwin Group**: The partnership is expected to triple access to builders and enhance the Hippo Home Insurance program, focusing on builder-sourced business [46][47] Risk Management and Underwriting - **Underwriting Improvements**: Achieved a cumulative rate increase of 82% through 173 new rate filings, significantly lowering the loss ratios from 34% to 19% for catastrophic risks and from 73% to 56% for non-catastrophic risks [18][22] - **Risk Management Strategy**: Emphasizes a disciplined approach to underwriting, focusing on positive expected loss ratios and utilizing data analytics for decision-making [39][90] Technology and Operational Efficiency - **Technology Investments**: Significant investments in technology to automate onboarding processes and improve operational efficiency, enhancing the ability to manage risk and underwriting [95][96] - **Operational Excellence**: A dedicated team focuses on streamlining workflows and processes to ensure scalability and favorable results [42][92] Future Outlook - **Financial Targets for 2028**: Aiming for $2 billion in gross written premium, over $125 million in adjusted net income, and more than 18% return on equity [45] - **Market Growth**: The MGA market is projected to grow, with Hippo well-positioned to capitalize on this growth through its hybrid fronting model [72] Additional Insights - **New Construction Focus**: Emphasizing the importance of new construction in underwriting, as it generally presents lower risk compared to older homes [63][64] - **Value Chain Benefits**: The partnership with Baldwin is expected to create a more frictionless experience for builders and customers, enhancing overall outcomes [68] This summary encapsulates the key points discussed during Hippo's 2025 Investor Day, highlighting the company's strategic direction, financial performance, and market positioning within the insurance industry.

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]

Financial Performance - Total revenue for Q1 2025 was $110.3 million, a 29.6% increase from $85.1 million in Q1 2024[17] - Net earned premium increased to $87.3 million, up 44.3% from $60.5 million year-over-year[17] - Total expenses rose to $155.9 million, compared to $118.0 million in the same quarter last year, reflecting a 32.0% increase[17] - Net loss attributable to Hippo for Q1 2025 was $47.7 million, compared to a net loss of $35.7 million in Q1 2024, representing a 33.5% increase in losses[17] - The company reported a comprehensive loss attributable to Hippo of $45.6 million for Q1 2025, compared to $36.2 million in Q1 2024[17] - The consolidated adjusted operating loss for Q1 2025 was $41.1 million, compared to a loss of $19.8 million in Q1 2024, indicating a widening of losses[101][103] - The net loss attributable to common stockholders for the three months ended March 31, 2025, was $47.7 million, compared to a net loss of $35.7 million in the same period of 2024[91] Cash and Liquidity - Cash and cash equivalents decreased to $140.9 million from $197.6 million as of December 31, 2024[13] - The total cash, cash equivalents, and restricted cash at the end of the period was $180.2 million, down from $263.3 million at the end of March 2024[22] - For the three months ended March 31, 2025, Hippo reported a net cash used in operating activities of $35.6 million, compared to a net cash provided of $17.7 million in the same period of 2024[22] - Total cash, cash equivalents, and restricted cash decreased from $232.8 million as of December 31, 2024, to $180.2 million as of March 31, 2025, representing a decline of approximately 22.5%[43] Assets and Liabilities - Total assets as of March 31, 2025, were $1,540.4 million, slightly down from $1,543.4 million at the end of 2024[13] - Total liabilities rose to $1,214.7 million in Q1 2025, an increase of 3.5% from $1,178.2 million in Q4 2024[13] - Hippo's accumulated deficit increased to $1,322.6 million as of March 31, 2025, from $1,270.1 million as of March 31, 2024[36] - The total accrued expenses and other liabilities rose from $87.4 million as of December 31, 2024, to $90.9 million as of March 31, 2025, an increase of about 4%[57] Investment and Financial Assets - The fair value of total investments, including fixed maturities and short-term investments, was $387.6 million as of March 31, 2025[36] - The company's net investment income for the three months ended March 31, 2025, was $5.8 million, slightly down from $5.9 million in the same period of 2024[41] - The total financial assets measured at fair value on a recurring basis amounted to $567.8 million as of March 31, 2025[48] - The total unrealized losses on investments as of March 31, 2025, amounted to $2.3 million, with $1.6 million in gross unrealized gains[38] Premiums and Underwriting - Gross written premium for the three months ended March 31, 2025, was $210.9 million, an increase from $194.7 million in the same period of 2024, representing an increase of approximately 8.5%[72] - California accounted for 21.8% of the gross written premium in Q1 2025, with an amount of $45.9 million, compared to 20.8% and $40.5 million in Q1 2024[72] - The net earned premium for Hippo Home Insurance was $56.1 million for Q1 2025, up from $48.1 million in Q1 2024, representing a growth of 16.6%[101][103] Expenses and Losses - Loss and loss adjustment expense reserve increased to $400.8 million from $350.0 million, indicating a 14.4% rise[13] - The company incurred losses and LAE of $92.4 million for the three months ended March 31, 2025, compared to $52.6 million for the same period in 2024[60] - The net loss and LAE incurred for the three months ended March 31, 2025, was $100.3 million, compared to $87.3 million for the same period in 2024, reflecting an increase of approximately 14.4%[68] Shareholder Information - The weighted-average shares used in computing net loss per share attributable to Hippo increased to 24,978,901 from 24,225,650 year-over-year[17] - The company has $32.6 million remaining available for share repurchase under the authorized program as of March 31, 2025[86] - The aggregate intrinsic value of options exercised during the three months ended March 31, 2025, was $1.1 million, compared to $0.4 million in the same period of 2024[78] Strategic Initiatives - The company aims to expand its product offerings and enhance customer satisfaction as part of its business strategy[8] - The Company is evaluating the impact of new accounting standards on its disclosures, including ASU No. 2023-09, which requires detailed income tax disclosures effective after December 15, 2024[30] - The Company anticipates adopting ASU No. 2024-03 regarding disaggregation of income statement expenses, effective after December 15, 2026[33]

Revenue Growth - Q1 2025 revenue increased by 30% year-over-year to $110 million, up from $85 million in Q1 2024[31] - Total Revenue rose to $110.3 million in Q1 2025, up from $85.1 million in Q1 2024, reflecting a growth of 29.5%[74] - The Insurance-as-a-Service segment revenue surged by 91% to $38.9 million in Q1 2025, compared to $20.4 million in Q1 2024[94] - HHIP revenue increased by 12% year-over-year to $62 million, supported by improvements in reinsurance structure[34] - The Hippo Home Insurance Program revenue grew by 12% to $61.9 million in Q1 2025, up from $55.1 million in Q1 2024[94] - Gross Written Premium increased to $210.9 million in Q1 2025 from $194.7 million in Q1 2024, representing an increase of 8.9%[73] - Gross written premiums for Q1 2025 were $157.1 million, an increase from $130.0 million in Q1 2024, representing a 21% growth[81] Losses and Ratios - Q1 net loss attributable to Hippo was $48 million, a $12 million increase year-over-year, with $45 million related to LA wildfires[46] - Net Loss attributable to Hippo was $(47.7) million in Q1 2025, compared to $(35.7) million in Q1 2024, indicating a 33.5% increase in losses[74] - Adjusted EBITDA for Q1 2025 was $(41.1) million, worsening from $(19.8) million in Q1 2024[78] - HHIP gross loss ratio rose by 41 percentage points year-over-year to 121%, primarily due to the impact of LA wildfires[37] - Consolidated net loss ratio was 106%, with LA wildfires contributing 51 percentage points to this figure[11] - Gross Loss Ratio increased to 95% in Q1 2025 from 59% in Q1 2024, indicating a significant rise in loss expenses relative to premiums[73] - Net Loss Ratio rose to 106% in Q1 2025, compared to 87% in Q1 2024, highlighting increased claims relative to net earned premiums[73] - The net loss ratio for Q1 2025 increased to 106%, up from 87% in Q1 2024, indicating a significant rise in losses relative to earned premiums[82] Financial Position - Cash and investments decreased by $42 million quarter-over-quarter to $528 million, mainly due to losses from LA wildfires[51] - Cash and cash equivalents decreased to $140.9 million as of March 31, 2025, down from $197.6 million at the end of 2024[76] - Total assets slightly decreased to $1,540.4 million as of March 31, 2025, from $1,543.4 million at the end of 2024[76] - Total liabilities increased to $1,214.7 million as of March 31, 2025, compared to $1,178.2 million at the end of 2024[76] Future Outlook - The company expects to achieve an annual run-rate of over $500 million in revenue and generate net profit by the end of 2025[29] - A $50 million surplus note agreement was signed to support growth, pending regulatory approval[22] - The company anticipates continued improvements in underwriting and pricing actions, which are expected to positively impact financials throughout the year[57] Expense Management - Fixed expenses decreased by $7 million year-over-year, resulting in a reduction from 48% of revenue in Q1 2024 to 30% in Q1 2025[44] - Segment expenses for Q1 2025 totaled $146.4 million, a 48% increase from $99.2 million in Q1 2024[94] - Adjusted operating loss for the Insurance-as-a-Service segment was $(0.5) million in Q1 2025, a decline from an operating income of $4.7 million in Q1 2024[94]

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]