Hippo Reports First Quarter 2022 Financial Results
May 13 2022 - 7:59AM
Business Wire
Hippo (NYSE: HIPO), the home insurance group focused on
proactive home protection, today announced its consolidated
financial results for the three months that ended March 31,
2022.
Complete financial results can be found in the company's
shareholder letter in the Investor Relations section of Hippo’s
website at https://investors.hippo.com.
“We’re excited by the progress reported today, achieving
significant growth while delivering our best quarterly gross loss
ratio since our public listing," said Hippo co-founder and CEO
Assaf Wand. “We believe by focusing on geographic expansion,
attracting more homeowners who embrace proactive home protection
through our omni-channel strategy, and continuously refining our
risk models, we will deliver better outcomes for our customers and
fuel Hippo’s success.”
First Quarter Highlights
Continued Strong Growth
- 25% YoY growth in 1Q22 Total Generated Premium (TGP)
- On track for full year guidance of $800-$820 million TGP
Revenue Ramped Up
- Revenue up 44% YoY
- Strong commission and fee growth
- Maintain full year guidance of $140-$142 million
Best Yet as a Public Company Gross Loss Ratio
- 76% Gross Loss Ratio
- Substantial improvement continues
- Expect full year Gross Loss Ratio below 100% versus 2021’s
138%
Strong Financial Position
- $772M cash and investments at March 31, 2022
- Spinnaker A- Rating (AM Best)
Conference Call and Webcast Information
Date:
Friday, May 13, 2022
Time:
8:30 a.m. Eastern Time / 5:30 a.m. Pacific
Time
Dial-in:
844-200-6205 (U.S.) / +1 929-526-1599
(International)
Conf ID:
650753
Webcast:
https://event.on24.com/wcc/r/3726041/7018ABB129753C107EC09C3273EECB94
A replay of the webcast will be made available after the call in
the investor relations section of the company’s website at
https://investors.hippo.com/
Information about Key Operating Metrics
We define TGP as the aggregate written premium placed across all
of our business platforms for the period presented. We measure TGP
as it reflects the volume of our business irrespective 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 insurance
carrier/reinsurer. We define gross loss ratio expressed as a
percentage, as the ratio of the gross losses and loss adjustment
expenses, to the gross earned premium.
Forward-looking statement safe harbor
Certain statements included in this press release that are not
historical facts are forward-looking statements for purposes of the
safe harbor provisions under the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
are accompanied by words such as “believe,” “may,” “will,”
“estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,”
“would,” “plan,” “predict,” “potential,” “seem,” “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 regarding estimates and forecasts of financial results
and other operating 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 the control of Hippo.
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 builder network;
our ability to manage growth effectively; risks relating to Hippo’s
brand and brand reputation; denial of claims or our failure to
accurately and timely pay claims; the effects of intense
competition in the segments of the insurance industry in which we
operate; the availability and adequacy of reinsurance, including at
current coverage, limits or pricing; our ability to underwrite
risks accurately and charge competitive yet profitable rates to our
customers, and the sufficiency of the analytical models we use to
assess and predict exposure to catastrophe losses; risks related to
our proprietary technology and our digital platform; outages or
interruptions or delays in services provided by our third party
providers, including our data vendor; 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 catastrophes, 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 maintenance of risk-based
capital 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 does not presently know, or that Hippo currently believes are
immaterial, that could also cause actual results to differ from
those contained in the forward-looking statements. In addition,
forward-looking statements reflect Hippo’s expectations, plans, or
forecasts of future events and views as of the date of this press
release. Hippo anticipates that subsequent events and developments
will cause Hippo’s assessments to change. However, while Hippo may
elect to update these forward-looking statements at some point in
the future, Hippo specifically disclaims any obligation to do so.
These forward-looking statements should not be relied upon as
representing Hippo’s assessments of any date subsequent to the date
of this press release. Accordingly, undue reliance should not be
placed upon the forward-looking statements.
About Hippo
Hippo’s goal is to make homes safer and better protected so
customers spend less time worrying about the burdens of
homeownership and more time enjoying their homes and the life
within. Harnessing real-time data, smart home technology, and a
growing suite of home services, we are creating the first
integrated home protection platform. Hippo is headquartered in Palo
Alto, California, and offers insurance products that are available
to more than 80 percent of U.S. homeowners in 38 states. Insurance
products are offered through Hippo Insurance Services, which is a
licensed property casualty insurance agent with commercial and
personal lines products underwritten by various insurance
companies. Hippo Insurance Services writes business through its
affiliate, Spinnaker Insurance Company, which is a national
property and casualty insurer rated A- by A.M. Best Company.
Spinnaker’s address is 1 Pluckemin Way, Suite 102, Bedminster, NJ.
For more information, including licensing information, visit
http://www.hippo.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220513005086/en/
Investors: Cliff Gallant Investors@hippo.com
Press: Mark Olson press@hippo.com
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