Hippo Reports Third Quarter 2024 Financial Results

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]