Hippo’s Q1 2023 results

Hippo shared its Q1 2023 results. Here are some highlights:

• Total generated premium, the aggregate written premium placed across all of Hippo’s business platforms, reached $245 million, up 59% from the same period last year.
• Of the TGP, $92.2 million was attributed to Hippo’s home insurance program, $104 million to the Spinnaker fronting business, and $97.9 million to the insurance agency business.
• Gross loss ratio for Hippo’s home insurance was 101%, including 41 percentage points of PCS-defined catastrophe losses. The company says that the quarter included unusually heavy rain and snow in parts of California, its second largest market. Excluding catastrophe losses, core gross loss ratio was 60% compared to 78% in the prior year quarter, reflecting the benefits of the pricing and underwriting actions Hippo took in calendar 2022. The company expects the pace of 2023 TGP growth to be restrained in this segment relative to other parts of its business as it continues to focus on improving loss ratio.
• Net loss ratio, the ratio of the net losses and loss adjustment expenses to the net earned premium, was 273%, which was 23 points higher compared to Q1 2022.
• The company ended the quarter with a $69.8 million loss, compared to a loss of $66.5 million in Q1 2022.
• Hippo reported an adjusted EBITDA loss of $44.3 million for its home insurance program, and a $10.8 million loss for its insurance agency business. The fronting business was not in the red, recording an adjusted EBITDA of $3.2 million.
• Hippo’s cash and investments were $620 million, down from $640 million at 12/31/2023.

Hippo Home Care, the company’s mobile app, is now available for all US homeowners even if they are not Hippo policyholders.