PALO ALTO, Calif., March 6, 2024 /PRNewswire/ — Hippo (NYSE: HIPO), the home insurance group focused on proactive home protection, today announced its consolidated financial results for the three months that ended December 31, 2023.
Complete financial results and full year guidance for 2024 can be found in the company’s shareholder letter in the Investor Relations section of Hippo’s website at https://investors.hippo.com.
“2023 was a transformational year for Hippo, highlighted by the expanded launch of our consumer agency, the continued growth and success of our Insurance-as-a-Service business, and decisive actions taken to reduce volatility in our Hippo Home Insurance Program,” said Hippo President and CEO Rick McCathron. “We enter 2024 poised to go on offense, with streamlined operations ready to serve our core customer segments in our core markets, and with renewed confidence we will generate positive adjusted EBITDA in Q4.”
Fourth Quarter Highlights
Favorable Mix-Shift Driving Top-line Growth
Insurance-as-a-Service (IaaS) and Services driving TGP growth, up 39% and 20% YoY, respectively in Q4
Consolidated TGP up 15% YoY, with IaaS and Services now representing 77% of Total TGP
Revenue up 80% YoY to $64 million
Continued HHIP Loss Ratio Improvement
Hippo Homeowners Insurance Program (HHIP) Q4 Accident Period loss ratio1 improved 24 percentage points from a year ago to 64%
Hippo Homeowners Insurance Program (HHIP) Q4 Accident Period Non-PCS loss ratio improved 11 percentage points from a year ago to 59%
Generating Substantial Operating Leverage
GAAP Operating expenses, excluding loss and loss adjustment and insurance related expense, declined from 158% of revenue a year ago to 75% in Q4
Net Loss and Adjusted EBITDA continuing to improve
Q4 GAAP net loss attributable to Hippo of $42 million down 33% from Q4 2022
Q4 Adjusted EBITDA loss of $22 million down 53% from Q4 2022
Financial Strength
Year-end Cash and investments of $491 million
Year-end Spinnaker surplus of $191 million, up from $165m a year ago
Conference Call and Webcast Information
Date: Wednesday …
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