Thu, Mar 6, 11:05 AM (46 days ago)
Hippo Holdings Inc. (HIPO) reported significant financial improvements for the fiscal year ending December 31, 2024. Total Generated Premium rose 18% to $1,336.1 million, driven by growth in both the aggregator and builder channels, despite a 22% decline in Hippo Home Insurance Program premiums. Total revenue increased 77% to $372.1 million, with net earned premium surging 153% to $272.5 million. The net loss attributable to Hippo decreased to $40.5 million from $273.1 million in the previous year, indicating improved operational efficiency. The Gross Loss Ratio improved to 53% from 71%, reflecting successful pricing and underwriting strategies. Adjusted EBITDA loss narrowed to $43.5 million, down from $200.6 million in 2023. The company initiated strategic measures to reduce underwriting volatility, including rate increases and selective non-renewals. Key risks include reliance on reinsurance and regulatory changes affecting premium rates and claims handling. The company maintains a strong liquidity position with $232.8 million in cash and investments. Overall, Hippo's strategic focus on customer retention and expense management contributes to a cautiously optimistic outlook for future profitability.