Filing Information [Form 10-Q Details](index=1&type=section&id=Form%2010-Q%20Details) This is Hippo Holdings Inc.'s Quarterly Report on Form 10-Q for the period ended September 30, 2023 - The report is a Quarterly Report on Form 10-Q for the period ended September 30, 2023[2](index=2&type=chunk) - The registrant is Hippo Holdings Inc., a Delaware corporation[2](index=2&type=chunk) [Registrant Information and Securities](index=1&type=section&id=Registrant%20Information%20and%20Securities) Hippo Holdings Inc. is a non-accelerated, smaller reporting, and emerging growth company, with common stock and warrants on NYSE Registrant Filer Status | Filer Status | Designation | | :------------- | :---------- | | Large accelerated filer | ☐ | | Accelerated filer | ☐ | | Non-accelerated filer | ☒ | | Smaller reporting company | ☒ | | Emerging growth company | ☒ | Securities Registered Pursuant to Section 12(b) of the Act | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :-------------------------------------- | | Common stock, $0.0001 par value per share | HIPO | New York Stock Exchange | | Warrants to purchase common stock | HIPO.WS | New York Stock Exchange | - The registrant had **23,887,240 shares** of common stock outstanding as of October 24, 2023[3](index=3&type=chunk) Table of Contents Cautionary Note regarding Forward-Looking Statements [Forward-Looking Statements Disclaimer](index=4&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section contains forward-looking statements about the Company's future, subject to risks and uncertainties that may cause actual results to differ - The report contains forward-looking statements about financial position, business strategy, and future operations, identifiable by words like 'anticipate,' 'believe,' 'expect,' and 'plan'[6](index=6&type=chunk) - These statements are based on current information, expectations, forecasts, and assumptions, and involve risks and uncertainties that could lead to materially different actual results[7](index=7&type=chunk) - The Company does not commit to updating forward-looking statements to reflect new information or future events, except as required by applicable securities laws[7](index=7&type=chunk) Part I. Financial Information [Item 1. Consolidated Financial Statements](index=6&type=section&id=Item%201%20Consolidated%20Financial%20Statements) This section presents Hippo Holdings Inc.'s unaudited consolidated financial statements and related notes for Q3 2023 and FY2022 [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Consolidated balance sheets show increased total assets and liabilities, with decreased stockholders' equity, as of September 30, 2023 Consolidated Balance Sheet Highlights (in millions) | Item | September 30, 2023 | December 31, 2022 | Change | | :----------------------------------- | :------------------- | :------------------ | :------- | | Total assets | $1,647.0 | $1,568.9 | +$78.1 | | Total liabilities | $1,235.7 | $975.4 | +$260.3 | | Total stockholders' equity | $411.3 | $593.5 | -$182.2 | | Cash and cash equivalents | $228.4 | $194.5 | +$33.9 | | Loss and loss adjustment expense reserve | $359.9 | $293.8 | +$66.1 | | Unearned premiums | $441.8 | $341.3 | +$100.5 | [Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Total revenue increased and net loss decreased for Q3 2023, driven by higher earned premium and absence of prior year impairment charges Consolidated Statements of Operations Highlights (in millions) | Item | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Change (YoY) | | :----------------------------------- | :------------------------------ | :------------------------------ | :----------- | | Total revenue | $57.7 | $30.7 | +$27.0 | | Net earned premium | $32.9 | $10.7 | +$22.2 | | Net investment income | $5.7 | $2.5 | +$3.2 | | Total expenses | $108.3 | $157.9 | -$49.6 | | Impairment and restructuring charges | — | $55.3 | -$55.3 | | Net loss attributable to Hippo | $(53.1) | $(129.2) | +$76.1 | | Net loss per share (basic and diluted) | $(2.24) | $(5.66) | +$3.42 | Consolidated Statements of Operations Highlights (Nine Months Ended Sep 30) | Item | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | Change (YoY) | | :----------------------------------- | :----------------------------- | :----------------------------- | :----------- | | Total revenue | $145.2 | $83.9 | +$61.3 | | Net earned premium | $69.0 | $30.9 | +$38.1 | | Net investment income | $16.5 | $4.0 | +$12.5 | | Total expenses | $368.7 | $349.1 | +$19.6 | | Impairment and restructuring charges | — | $55.3 | -$55.3 | | Net loss attributable to Hippo | $(230.8) | $(270.3) | +$39.5 | | Net loss per share (basic and diluted) | $(9.85) | $(11.93) | +$2.08 | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased for the nine months ended September 30, 2023, primarily due to net losses, partially offset by stock-based compensation Stockholders' Equity Changes (January 1 to September 30, 2023, in millions) | Item | Amount | | :----------------------------------- | :----- | | Balance at January 1, 2023 | $589.9 | | Net loss | $(230.8) | | Other comprehensive loss | $(0.7) | | Issuance of common stock | $2.8 | | Repurchase of common stock | $(1.8) | | Shares withheld related to net share settlement | $(4.0) | | Stock-based compensation expense | $46.7 | | Other | $(6.0) | | Balance at September 30, 2023 | $407.0 | Stockholders' Equity Changes (January 1 to September 30, 2022, in millions) | Item | Amount | | :----------------------------------- | :----- | | Balance at January 1, 2022 | $859.6 | | Net loss | $(270.3) | | Other comprehensive loss | $(7.1) | | Issuance of common stock | $4.1 | | Repurchase of common stock | — | | Shares withheld related to net share settlement | $(3.5) | | Stock-based compensation expense | $46.3 | | Other | $(2.1) | | Balance at September 30, 2022 | $635.0 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash used in operating activities decreased, investing activities generated cash, and financing activities used more cash for the nine months ended September 30, 2023 Consolidated Cash Flow Summary (Nine Months Ended Sep 30, in millions) | Cash Flow Activity | 2023 | 2022 | Change | | :----------------------------------- | :----- | :----- | :----- | | Net cash used in operating activities | $(43.9) | $(131.4) | +$87.5 | | Net cash provided by (used in) investing activities | $79.6 | $(290.7) | +$370.3 | | Net cash used in financing activities | $(10.8) | $(3.7) | $(7.1) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $24.9 | $(425.8) | +$450.7 | | Cash, cash equivalents, and restricted cash at end of period | $269.4 | $392.9 | $(123.5) | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on accounting policies, financial instruments, equity, and segment information, offering context to the financial statements [Note 1. Description of Business and Summary of Significant Accounting Policies](index=11&type=section&id=Note%201.%20Description%20of%20Business%20and%20Summary%20of%20Significant%20Accounting%20Policies) Hippo Holdings Inc. underwrites and markets insurance through subsidiaries, with financial statements adjusted for a 2022 reverse stock split - Hippo Holdings Inc. underwrites, administers, and markets personal property and commercial insurance policies through its licensed agency, insurance company subsidiaries (Spinnaker, SSIC, MIC), and captive reinsurer (RHS)[22](index=22&type=chunk) - The Company completed a one-for-**25** reverse stock split on September 29, 2022, retroactively adjusting all share and per share information[27](index=27&type=chunk)[29](index=29&type=chunk) - The Company reports three operating segments: Services, Insurance-as-a-Service, and Hippo Home Insurance Program[26](index=26&type=chunk) [Note 2. Investments](index=13&type=section&id=Note

Financial Data and Key Metrics Changes - The company reported a net loss attributable to Hippo of $108 million or $4.61 per share for the quarter, compared to a loss of $74 million or $3.25 per share in the prior year quarter [14] - Total generated premium (TGP) grew 56% year-over-year to $318 million, while revenue increased 66% year-over-year to $48 million [34] - Adjusted EBITDA loss was $88 million, an increase from $56 million a year ago, reflecting higher than expected weather losses [35][41] Business Line Data and Key Metrics Changes - In the Services segment, TGP was up 35% year-over-year, exceeding the full-year guidance of 30% for 2023 [15] - The Hippo Home Insurance Program segment saw TGP increase by 10% year-over-year, with a core gross loss ratio of 63% in the quarter, improving by 12 percentage points compared to the prior year [17][32] - The Insurance-as-a-Service segment experienced TGP growth of 112% year-over-year, driven by new and existing programs [31][36] Market Data and Key Metrics Changes - The company noted that 71% of new TGP came from outside its two largest states, Texas and California, indicating progress in geographic diversification [37] - The Texas exposure is now about a quarter of the book, down from over half two years ago, with deductibles having doubled over the last year [98][99] Company Strategy and Development Direction - The company aims to turn adjusted EBITDA positive by late 2024, with a focus on improving pricing, underwriting, and reducing exposure to catastrophic events [13][41] - The management emphasized the importance of innovation in the homeowners' insurance market, particularly in response to climate change and increasing weather-related risks [33][89] - The company is taking aggressive actions to mitigate future catastrophic exposure, including rate hikes and increased deductibles [39][90] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by frequent catastrophic events, indicating that some events are becoming nearly uninsurable [47] - The company remains confident in its long-term vision and believes it is well-positioned to adapt to the changing insurance landscape [30][90] - Management highlighted the need for collaboration among consumers, the industry, and regulators to address the impacts of climate change on insurance [89] Other Important Information - The company successfully sponsored its first catastrophe bond, raising $110 million, which reflects strong investor confidence in its approach [19] - The company expects revenue to increase by 49% for 2023, with TGP guidance raised to $1.1 billion [20][40] Q&A Session Summary Question: Can you quantify the level of tail events experienced this quarter? - Management indicated that they experienced 22 cat events, with over 80% of losses coming from five major events in Texas and Colorado [23] Question: What actions are being taken in response to the catastrophic events? - Management stated they are becoming more aggressive in pricing, location diversification, and underwriting actions to isolate the book from weather-related events [24] Question: How is the company managing its exposure in Texas? - Management confirmed that Texas exposure is now about a quarter of the book, down from over half, and that deductibles have doubled [98][99] Question: What is the impact of the recent catastrophic losses on future financials? - Management explained that the losses will impact the 2022 reinsurance treaty, but they are taking steps to mitigate future risks [62] Question: How is the company positioned in the current market? - Management noted that while traditional underwriters are backing off, new players are entering the market, and Hippo is well-positioned to take advantage of this shift [75]

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 June 30, 2023 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) 150 Forest Avenue Palo Alto, Cali ...

Hippo Holdings, Inc. (NYSE:HIPO) Q1 2023 Earnings Conference Call May 9, 2023 8:00 AM ET Company Participants Clifford Gallant - VP, IR Stewart Ellis - CFO & Treasurer Richard McCathron - President, CEO & Director Conference Call Participants Thomas McJoynt-Griffith - KBW Alexander Scott - Goldman Sachs Group Matthew Carletti - JMP Securities Andrew Andersen - Jefferies Pablo Singzon - JPMorgan Chase & Co. Operator Hello, everyone, and welcome to the Hippo Q1 2023 Earnings Call. My name is Chach and I'll be ...

**Part I. Financial Information** [**Item 1. Consolidated Financial Statements**](index=6&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The consolidated financial statements for Q1 2023 reflect increased assets, decreased equity due to net loss, and revenue growth [**Consolidated Balance Sheets**](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets increased to $1,604.7 million, while stockholders' equity decreased to $543.0 million, reflecting the net loss Consolidated Balance Sheet Summary | Financial Metric | March 31, 2023 (in millions) | December 31, 2022 (in millions) | | :--- | :--- | :--- | | **Total Assets** | **$1,604.7** | **$1,568.9** | | Total Investments | $431.4 | $445.9 | | Cash and cash equivalents | $188.9 | $194.5 | | **Total Liabilities** | **$1,061.7** | **$975.4** | | Loss and loss adjustment expense reserve | $305.2 | $293.8 | | Unearned premiums | $365.7 | $341.3 | | **Total Stockholders' Equity** | **$543.0** | **$593.5** | [**Consolidated Statements of Operations and Comprehensive Loss**](index=7&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Total revenue grew 62% to $39.8 million, but expenses rose to $107.6 million, leading to a net loss of $69.8 million for Q1 2023 Consolidated Statements of Operations Summary | Metric (in millions) | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | **Total Revenue** | **$39.8** | **$24.5** | | Net earned premium | $13.8 | $9.0 | | Commission income, net | $17.4 | $11.5 | | **Total Expenses** | **$107.6** | **$90.8** | | Losses and loss adjustment expenses | $37.7 | $22.5 | | **Net Loss Attributable to Hippo** | **$(69.8)** | **$(67.6)** | | Net Loss Per Share | $(3.01) | $(3.01) | [**Consolidated Statements of Stockholders' Equity**](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased by $50.5 million to $543.0 million in Q1 2023, primarily due to a $68.1 million net loss Consolidated Statements of Stockholders' Equity Summary | Equity Component (in millions) | Balance at Jan 1, 2023 | Q1 2023 Changes | Balance at Mar 31, 2023 | | :--- | :--- | :--- | :--- | | Total Stockholders' Equity | $593.5 | $(50.5) | $543.0 | | Net Loss | - | $(68.1) | - | | Stock-based compensation | - | $17.4 | - | | Other comprehensive income | - | $1.7 | - | [**Consolidated Statements of Cash Flows**](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $35.7 million, while investing activities generated $13.8 million in Q1 2023 Consolidated Statements of Cash Flows Summary | Cash Flow Activity (in millions) | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(35.7) | $(58.6) | | Net cash provided by (used in) investing activities | $13.8 | $(378.2) | | Net cash used in financing activities | $(1.9) | $(0.3) | | **Net (decrease) in cash** | **$(23.8)** | **$(437.1)** | [**Notes to Consolidated Financial Statements**](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail segment realignment, increased reinsurance retention, a $50 million share repurchase, and a post-quarter property purchase - The company realigned its operations into three new reportable segments: Services, Insurance-as-a-Service, and Hippo Home Insurance Program[21](index=21&type=chunk)[107](index=107&type=chunk) - For its 2023 reinsurance treaties, the company expects to retain a significantly higher portion of premium (**approximately 40%** for primary homeowners and **58%** for the builder channel) before purchasing catastrophe protection, compared to **approximately 10%** in 2022[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) - In March 2023, the Board authorized a **$50.0 million** share repurchase program and approved a one-time repricing of certain employee stock options, resulting in an incremental share-based compensation charge of **$3.6 million**[91](index=91&type=chunk)[100](index=100&type=chunk) - Subsequent to the quarter end, on April 18, 2023, a subsidiary purchased a property in Austin, Texas for **approximately $26.0 million** in cash to be used as office space[117](index=117&type=chunk) [**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses 59% TGP growth to $244.9 million, stable Gross Loss Ratio at 76%, increased Net Loss Ratio to 273%, and a $52.1 million Adjusted EBITDA loss [**Reinsurance**](index=33&type=section&id=Reinsurance) The company significantly increased its 2023 reinsurance retention to 40-58% of premium, up from 10% in 2022, and maintains 1-in-250-year catastrophe coverage - For the 2023 primary homeowners reinsurance treaty, the company expects to retain **approximately 40%** of the premium through its subsidiaries, a significant increase from about **10%** in 2022[132](index=132&type=chunk)[128](index=128&type=chunk) - For business from its builder channel, the company expects to retain **approximately 53%** of the premium in 2023[133](index=133&type=chunk) - The company purchases non-proportional excess of loss (XOL) catastrophe reinsurance to protect against events with a probability of no more than 0.4%, equivalent to a **1-in-250-year event**[135](index=135&type=chunk)[64](index=64&type=chunk) [**Key Operating and Financial Metrics and Non-GAAP Measures**](index=40&type=section&id=Key%20Operating%20and%20Financial%20Metrics%20and%20Non-GAAP%20Measures) Key metrics show TGP grew 59% to $244.9 million, Gross Loss Ratio remained 76%, Net Loss Ratio increased to 273%, and Adjusted EBITDA loss widened to $52.1 million Key Operating and Financial Metrics | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Total Generated Premium | $244.9M | $153.7M | | Adjusted EBITDA | $(52.1)M | $(48.5)M | | Gross Loss Ratio | 76% | 76% | | Net Loss Ratio | 273% | 250% | - The **Hippo Home Insurance Program Gross Loss Ratio (HPGLR)** was **101%** in Q1 2023. Excluding reserve releases, the **Non-PCS component improved to 60% from 78%** in the prior year, indicating benefits from pricing and underwriting actions[196](index=196&type=chunk)[198](index=198&type=chunk) [**Results of Operations**](index=45&type=section&id=Results%20of%20Operations) Total revenue grew 62% to $39.8 million, while total expenses increased 19% to $107.6 million, driven by a 68% rise in loss adjustment expenses Results of Operations Summary | Line Item (in millions) | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$39.8** | **$24.5** | **62%** | | Net earned premium | $13.8 | $9.0 | 53% | | Commission income, net | $17.4 | $11.5 | 51% | | **Total Expenses** | **$107.6** | **$90.8** | **19%** | | Losses and loss adjustment expenses | $37.7 | $22.5 | 68% | | Technology and development | $11.6 | $14.7 | (21)% | | Sales and marketing | $22.4 | $24.9 | (10)% | | **Net Loss Attributable to Hippo** | **$(69.8)** | **$(67.6)** | **3%** | [**Liquidity and Capital Resources**](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity with $220.7 million in cash and $431.4 million in investments, and improved operating cash flow to $(35.7) million - The company held **$220.7 million** in cash and restricted cash and **$431.4 million** in investments as of March 31, 2023[217](index=217&type=chunk) - Net cash used in operating activities decreased to **$35.7 million** in Q1 2023 from **$58.6 million** in Q1 2022[220](index=220&type=chunk)[221](index=221&type=chunk) - The company has an undrawn borrowing capacity of **$40.3 million** from the Federal Home Loan Bank (FHLB) of New York[218](index=218&type=chunk) [**Item 3. Quantitative and Qualitative Disclosures About Market Risk**](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no significant changes to the company's market risk exposure since December 31, 2022 - There have been **no significant changes** to the company's market risk exposure since December 31, 2022[229](index=229&type=chunk) [**Item 4. Controls and Procedures**](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal controls - Management concluded that disclosure controls and procedures were **effective as of the end of the reporting period**[230](index=230&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[232](index=232&type=chunk) **Part II. Other Information** [**Item 1. Legal Proceedings**](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a civil lawsuit by a former employee, Eyal Navon, alleging breach of contract, fraud, and insider trading - Hippo and its co-founder are defendants in a civil action brought by former employee Eyal Navon, with allegations including breach of contract, fraud, and insider-trading[74](index=74&type=chunk)[75](index=75&type=chunk) - The company denies all claims and is engaged in fact discovery, with a **trial date set for November 6, 2023**[77](index=77&type=chunk) [**Item 1A. Risk Factors**](index=51&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred regarding the risk factors disclosed in the company's 2022 Form 10-K - **No material changes have occurred** regarding the risk factors disclosed in the company's 2022 Form 10-K[235](index=235&type=chunk) [**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board authorized a $50.0 million share repurchase program in March 2023, with 15,472 shares repurchased for $0.2 million Share Repurchase Program Details | Period | Total Shares Purchased | Average Price Paid | Maximum Value Remaining (in millions) | | :--- | :--- | :--- | :--- | | Jan 2023 | 0 | $0.00 | $50.0 | | Feb 2023 | 0 | $0.00 | $50.0 | | Mar 2023 | 15,472 | $15.46 | $48.8 | - A **share repurchase program of up to $50.0 million was authorized** in March 2023 with **no expiration date**[237](index=237&type=chunk) [**Item 6. Exhibits**](index=53&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including required CEO and CFO certifications and XBRL data - The filing includes required **CEO and CFO certifications** under Sections 302 and 906 of the Sarbanes-Oxley Act[242](index=242&type=chunk)

Hippo Holdings Inc. (NYSE:HIPO) Q4 2022 Results Conference Call March 2, 2023 5:00 PM ET Company Participants Cliff Gallant - Investor Relations Rick McCathron - President and Chief Executive Officer Stewart Ellis - Chief Financial Officer Chris Donahue - Chief Underwriting Officer Conference Call Participants Matt Carletti - JMP Securities Tommy McJoynt - KBW Alex Scott - Goldman Sachs Pablo Singzon - JP Morgan Operator Good afternoon. Thank you for attending today's Hippo Fourth Quarter ‘22 Earnings Call. ...

Commission file number 001-39711 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. HIPPO HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware 32-0662604 (State of incorpo ...

Financial Data and Key Metrics Changes - The third quarter adjusted EBITDA loss was $54.8 million, including $4.7 million related to Hurricane Ian, showing an improvement from the previous quarter's loss of $55.8 million [19][23] - Revenue reached $30.7 million, up 44% from Q3 last year, indicating an acceleration in growth compared to Q2 [28] - Net loss attributable to Hippo was $129.2 million or $5.66 per share, compared to a loss of $30.9 million or $2 per share in the prior year quarter [35] Business Line Data and Key Metrics Changes - The builder business accounted for 26% of total Hippo and agency premiums in the quarter, nearly half of new business [24] - Hippo blended premium retention across both Hippo policies and agency customers was 90%, up from 89% in Q2 [12][26] - Gross loss ratio, excluding Hurricane Ian, was 58%, an improvement of 70 percentage points from the previous year [16][28] Market Data and Key Metrics Changes - The customer base reached 332,000 by quarter's end, driven by customer acquisition and retention [12][25] - Growth was noted in states like New York, North Carolina, and Massachusetts, with a focus on attracting "generation better" customers [14][26] Company Strategy and Development Direction - The company aims to achieve adjusted EBITDA profitability by late 2024 while expanding its product offerings [38] - Investments in technology and service capabilities are ongoing to drive long-term growth and enhance customer experience [20][38] - The launch of the "Book a Pro" feature for Texas customers is expected to connect homeowners with home improvement professionals [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in building a superior underwriting model despite challenges from inflation and supply chain issues [10] - The company expects Q4 2022 adjusted EBITDA loss to be below $50 million, with continued improvements anticipated thereafter [19][23] - Management highlighted the importance of maintaining discipline in underwriting and market entry strategies, particularly in Florida [43][44] Other Important Information - The company wrote off a remaining goodwill asset of $53.5 million in the quarter, reflecting market valuation concerns [35] - Total generated premium is expected to be between $790 million and $810 million for the full year, representing over 30% growth [36] Q&A Session Summary Question: How did the company fare from a customer's point of view regarding Hurricane Ian? - Management expressed satisfaction with the proactive response to customers and positive feedback received, highlighting the effectiveness of their underwriting discipline [41][42] Question: What drove the decision to write off goodwill? - The decision was based on routine testing of goodwill and market valuation concerns, as the company's stock was trading below its cash balance [54][55] Question: How does the company view the impact of economic slowdown on different business segments? - Management believes there is still significant upside in the builder channel despite a slowdown, as they are just beginning to tap into opportunities [68][69] Question: What is the company's approach to reinsurance costs and profitability? - Management noted that while the reinsurance market is hardening, their multiyear capacity with partners and improved loss ratios position them well [75][76] Question: How will sales and marketing spend be affected by growth in the builder channel? - Management indicated that sales and marketing strategies are flexible and can be adjusted based on market conditions, with a focus on maintaining customer lifetime value [86][90]

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 September 30, 2022 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) 150 Forest Avenue Palo Alto, ...

Financial Data and Key Metrics Changes - Total generated premium (TGP) increased by 29% year-over-year, reaching $204 million in Q2 2022 compared to $159 million in the prior year quarter [15][26] - Revenue for Q2 was $28.7 million, up 37% from the prior year quarter [29] - Gross loss ratio improved to 78%, an 83 percentage point improvement over Q2 last year [31][39] - Net loss attributable to the company was $73.5 million, or $0.13 per share, compared to a net loss of $84.5 million in the prior year quarter [39] Business Line Data and Key Metrics Changes - The company launched in major states including New York, Massachusetts, and North Carolina, contributing to geographic expansion [16] - Premium retention rate remained high at 87%, despite non-renewing policies not aligned with customer segment goals [20] - The builder channel is now around 10% of the Hippo homeowners program, with significant growth potential [86] Market Data and Key Metrics Changes - The company is now live in 40 states, covering approximately 94% of the U.S. population, but holds less than 1% of the overall homeowners insurance market [28] - The geographic diversification has helped mitigate the impact of adverse weather events on the loss ratio [32] Company Strategy and Development Direction - The company aims to achieve profitability without raising additional capital, focusing on cost containment and operating efficiencies [65][67] - A new brand campaign, "Feel the Housepower," was launched to enhance customer awareness of the company's unique value proposition [22][36] - The company is refining its underwriting and pricing strategies to focus on profitable business segments [27][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to succeed in new markets and improve loss ratios despite inflationary pressures [15][44] - The company expects to see continued improvements in loss ratios and profitability as it refines pricing and risk management strategies [17][39] - Management highlighted the importance of geographic diversification in reducing volatility and improving overall performance [32][70] Other Important Information - Cash and investments at the end of the quarter totaled $732 million, with a conservative investment strategy focused on high liquidity [25][38] - The company plans to provide more detailed growth plans and profitability strategies at the upcoming Investor Day [23][65] Q&A Session Summary Question: Can you elaborate on the ongoing improvement in the loss ratio? - Management indicated that improvements stem from smarter growth strategies, targeted customer acquisition, and geographic diversification [43][44] Question: How does the company plan to balance selective underwriting with marketing spend? - Management noted that while they are being selective in underwriting, they expect growth to accelerate in the second half of the year due to improved pricing and marketing efforts [56][58] Question: What is the company's strategy for achieving profitability without raising additional capital? - Management emphasized a focus on cost containment and operational efficiencies, with a goal of reaching cash flow positivity [65][67] Question: How is the company addressing the net loss ratio and reinsurance agreements? - Management explained that the net loss ratio is impacted by lagging reinsurance agreements and that they are exploring more cost-effective structures for future treaties [70][72] Question: What is the current status of the builder channel and its impact on growth? - Management reported that the builder channel is growing rapidly and is expected to continue to contribute positively to the company's growth [86]