PALO ALTO, Calif.– (BUSINESS THREAD)–Hippo, (NYSE: HIPO), the home insurance group focused on proactive home protection, today announced its consolidated financial results for the three months ended June 30, 2022.
Full financial results and updated guidance for the full year to 2022 can be found in the company’s shareholder letter in the investor relations section of Hippo’s website at https://investors.hippo.com.
“We closed the first half of 2022 in a strong position with continued growth, geographic expansion and an improved gross loss ratio,” said Hippo President and CEO Rick McCathron. “Our target markets are responding positively to our proactive approach to home protection, and we are proud to improve our full-year guidance for gross loss ratio from 100% to less than 90% as we work to accelerate our timeline to profitability.”
Hippo will hold an Investor Day on September 6, 2022, beginning at 9 a.m. EDT, in New York City as an in-person event. CEO and President Rick McCathron, Executive Chairman and Co-Founder Assaf Wand and CFO Stewart Ellis will host a series of presentations, along with a Q&A, highlighting Hippo’s financial outlook, operating strategy and plans for fulfill the company’s vision of protecting joy. of the property of the house.
Highlights of the second quarter
Improvement in the quarterly gross loss ratio
Gross loss ratio of 78% Substantial year-over-year improvement Improvement in guidance below 90% for full year 2022
Continued strong growth in TGP
29% YoY growth in 2Q12 Lowering full-year guidance to $790-810 million, still up 30% from 2021. Enter New York, Massachusetts and North Carolina
Premium retention stable
The 87% premium retention rate raises the average for high teens
Solid financial position
$732 million in cash and investments as of June 30, 2022 Spinnaker A- Rating (AM Better)
Conference call and webcast information
Date: Thursday, August 11, 2022
Time: 05:00 pm Eastern Time/ 02:00 pm Pacific Time
Dial: 833 927 1758 (US) / +1 929-526-1599 (International)
Conf ID: 228716
A replay of the webcast will be available following the call on the Investor Relations section of the Company’s website at https://investors.hippo.com/.
Information on key operational metrics
We define the gross loss ratio expressed as a percentage, as the ratio of gross losses and loss adjustment expenses, to gross premium earned. We define TGP as the aggregate written premium placed across all of our trading platforms during the period presented. We measure TGP as it reflects the volume of our business regardless of choices related to how we structure our reinsurance treaties, the amount of risk we retain on our own balance sheet, or the amount of business written in our capacity as an MGA, agency , or as an insurer/reinsurer.
Prospective safe harbor statement
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally accompanied by words such as “believes,” “may,” “estimate,” “continue,” “anticipate,” “attempt,” “expect,” “should,” “should,” “plan,” “predict,” “potential,” ” appear,” “seek,” “future,” “outlook” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements about estimates and forecasts of financial results and other operational and performance metrics, our business strategy, the quality of our products and services and the potential growth of our business. These statements are based on the current expectations of Hippo’s management and are not predictions of actual performance. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, and many actual events and circumstances are beyond Hippo’s control. These forward-looking statements are subject to a number of risks and uncertainties, including our ability to achieve or maintain profitability in the future; our ability to retain and expand our customer base and grow our business, including our network of builders; our ability to manage growth effectively; risks related to the brand and reputation of the Hippo brand; the denial of claims or our failure to pay claims in an accurate and timely manner; the effects of intense competition in the segments of the insurance industry in which we operate; the availability and adequacy of reinsurance, including current coverage, limits or pricing; our ability to accurately underwrite risks and charge competitive yet profitable rates to our clients, and the adequacy of the analytical models we use to assess and predict catastrophe loss exposure; risks related to our proprietary technology and digital platform; interruptions or delays in the services provided by our third party providers, including our data provider; risks related to our intellectual property; the seasonal and cyclical nature of our business; the effects of severe weather events and other natural or man-made disasters, including the effects of climate change, global pandemics and terrorism; continued disruptions from the COVID-19 pandemic; any overall decline in economic activity; and the effects of existing or new legal or regulatory requirements on our business, including with respect to risk-based capital maintenance and financial strength ratings, data privacy and cybersecurity, and the insurance industry generally. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Hippo is not currently aware of, or that Hippo currently believes are not material, that may also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Hippona’s expectations, plans or forecasts regarding future events and opinions as of the date of this press release. Hippo anticipates that subsequent events and developments will cause Hippo’s ratings to change. However, although Hippo may choose to update these forward-looking statements at some point in the future, Hippo specifically disclaims any obligation to do so. No reliance should be placed on these forward-looking statements representing Hippo’s valuations as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed on forward-looking statements.
Hippo is protecting the joy of home ownership, helping to safeguard customers’ most important financial asset by harnessing the power of real-time data, smart home technology and a growing suite of services to in the home to provide proactive home protection.
The operating subsidiaries of Hippo Holdings Inc. they include Hippo Insurance Services, Hippo Home Care, First Connect Insurance Services, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company and Mainsail Insurance Company. Hippo Insurance Services is a licensed casualty insurance agent with products underwritten by various affiliated and non-affiliated insurance companies. For more information, including licensing details, visit http://www.hippo.com.