Hippo Reports Third Quarter 2024 Financial Results
PALO ALTO, Calif., Nov. 8, 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 September 30, 2024.
"The positive momentum we've built over the past year continued in the third quarter as we took a significant step forward on our path to profitability," said Hippo President and CEO Rick McCathron. "We strengthened our foundation for future growth by continuing to develop our Hippo New Homes Program and delivered our best-ever year-over-year improvement to our HHIP non-weather loss ratio--positioning us for a successful fourth quarter and sustained growth in 2025 and beyond."
Hippo also announced that it sold a majority stake in First Connect Insurance Services to Centana Growth Partners, who will invest new capital into First Connect to fund its future growth.
"Since we acquired First Connect in 2020, it has become the premier platform for connecting independent agents with third-party carriers. As Hippo focuses more and more on its core business, we felt this was the ideal time for First Connect to chart its own path. We are excited to remain a customer, partner, and minority shareholder as First Connect continues leveling the playing field for independent agents."
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/.
Third Quarter Highlights
Maintained Top-line Growth; Favorable Mix-Shift
Revenue up 65% YoY to $95 million; premium retention more in-line with risk-retention
Consolidated TGP up 21% YoY, with Services and Insurance-as-a-Service ("IaaS") representing 81% of TGP
Services and IaaS driving TGP growth, up 46% and 12% YoY, respectively in Q3
Continued HHIP Loss Ratio Improvement
HHIP Q3 accident period loss ratio improved 22pp YoY to 70%; non-PCS loss ratio improved 15pp YoY to 52%, PCS loss ratio improved 7pp YoY to 18%
HHIP Q3 gross loss ratio improved 3pp YoY to 72%
HHIP net loss ratio improved 67pp YoY to 84%
Improving Operating Leverage
Investments in operational efficiencies continued to pay off as fixed expenses lowered by $17 million while revenue increased by $37 million YoY
Sales & Marketing, Technology & Development, and General & Administrative expense collectively declined from 89% of revenue to 36% ...