Hippo (US:HIPO)2025-05-07 20:02Revenue 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]