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]