Hippo Holdings Inc. reported significant financial developments in its third quarter and the first nine months of 2024, reflecting a marked improvement in revenue and a reduction in net losses compared to the same periods in 2023. For Q3 2024, total revenue reached $95.5 million, a 66% increase from $57.7 million in Q3 2023. The net earned premium for the quarter was $70.6 million, up 115% from $32.9 million in the prior year. For the nine months ended September 30, 2024, total revenue was $270.2 million, an 86% increase from $145.2 million in the same period in 2023, with net earned premiums rising to $195.5 million from $69.0 million.

Despite the revenue growth, Hippo reported a net loss of $8.5 million for Q3 2024, an improvement of 84% compared to a net loss of $53.1 million in Q3 2023. For the nine-month period, the net loss attributable to Hippo was $84.7 million, down from $230.8 million in the same timeframe last year. The company’s adjusted EBITDA loss also improved, decreasing to $(7.5) million in Q3 2024 from $(38.4) million in Q3 2023, and to $(52.2) million for the nine months ended September 30, 2024, compared to $(178.3) million in the prior year.

Total expenses for Q3 2024 were $100.7 million, down from $108.3 million in Q3 2023, while expenses for the nine months decreased to $344.7 million from $368.7 million. The gross loss ratio improved to 50% in Q3 2024 from 59% in Q3 2023, and the net loss ratio also showed significant improvement, decreasing to 73% from 111% in the same quarter.

Strategically, Hippo has made notable changes to its reinsurance structure, transitioning from proportional reinsurance to a traditional excess of loss (XOL) model, which allows the company to retain more risk and associated premiums. This shift is expected to enhance profitability and reduce volatility. Additionally, the company completed the sale of Mainsail Insurance Company for $26.6 million in July 2024 and sold a majority stake in First Connect Insurance Services for $48.0 million in October 2024.

As of September 30, 2024, Hippo reported cash and cash equivalents of $191.2 million, an increase from $142.1 million at the end of 2023. The company’s total investments rose to $354.3 million, up from $348.8 million at the end of the previous fiscal year. The company continues to focus on enhancing customer retention and expanding its market presence while managing operational costs effectively.