Hippo’s Q2 2022 highlights
Hippo shared its Q2 2022 results. Here are some highlights:
- Total generated premium was $204 million in Q2, up 29% from $159 million in the prior year quarter. Hippo now operates in 40 states.
- Revenue in Q2 was $28.7 million, up 37% over the prior year quarter. Revenue includes net premiums earned, ceding, MGA, and agency commissions paid to Hippo by other carriers and reinsurers, as well as service and fee income. Hippo is expanding its third party program administrator business at Spinnaker.
- Gross Loss Ratio in Q2 was 78%, an 83% point improvement over Q2 last year.
- Sales and Marketing expenses decreased to $19.4 million in Q2 from $22.2 million in the prior year quarter. As the company focused on the execution of rate adjustments in the first half of 2022, it was conservative with marketing spend. In the second half of the year, Hippo expects “to lean into customer acquisition.”
- Technology and Development expenses increased to $16.5 million from $7.5 million in the prior year quarter, in part reflecting additional stock-based compensation.
- General and Administrative expenses increased to $18.2 million from $8.8 million in the prior year quarter reflecting additional stock-based compensation of $3.8 million and the higher costs related to being a public company.
- Cash and investments at the end of the quarter were $732 million.
- Net Loss attributable to Hippo was $73.5 million compared to a Net Loss of $84.5 million in the prior year quarter.
“We are getting better at identifying our target customers and winning their business. As this attractive and appropriately priced business grows and as the other loss ratio improving efforts gain momentum, we expect our loss ratios to continue to converge with those of our large, national peers. Given our strong performance in the first half of 2022, we are pleased to be able to offer improved full year 2022 guidance for Gross Loss Ratio, bringing it down from our previous guidance of under 100% to under 90%, representing a potential 48 percentage point improvement from 138% in 2021.” – Hippo.