Hippo Holdings Inc. reported significant financial improvements in its fiscal year ending December 31, 2024, with total revenue reaching $372.1 million, a substantial increase of 77% from $209.7 million in 2023. The company’s net loss attributable to Hippo was reduced to $40.5 million, compared to a loss of $273.1 million in the previous year, marking an 85% improvement. This positive shift was driven by a 153% increase in net earned premiums, which totaled $272.5 million, largely due to higher retention rates and growth in the Insurance-as-a-Service and Hippo Home Insurance Program segments.
In terms of operational metrics, Hippo's total generated premium rose by 18% to $1.336 billion, up from $1.134 billion in 2023. The company attributed this growth to an expanded book of business in its aggregator and builder channels, despite a decrease in the Hippo Home Insurance Program due to strategic actions taken to mitigate exposure to wind and hail risks. The gross loss ratio improved to 53% from 71%, reflecting effective pricing and underwriting actions, while the net loss ratio also decreased significantly from 169% to 77%.
Strategically, Hippo made notable changes, including the sale of its First Connect business for $48 million and the Mainsail Insurance Company for $26.6 million, which contributed to a gain of $54.4 million in total from these transactions. The company also implemented a nationwide pause on underwriting new premiums for its HO3 business in 2023 to reassess its risk appetite, which has since led to improved underwriting results. Additionally, Hippo's workforce was reduced to 478 employees as part of an expense reduction initiative aimed at streamlining operations.
Looking ahead, Hippo's management expressed optimism about future growth, emphasizing plans to enhance customer retention and expand its product offerings. The company aims to leverage its technology and data capabilities to improve underwriting accuracy and customer experience. However, it remains cautious about potential market volatility and regulatory challenges that could impact its operations, particularly in light of the cyclical nature of the insurance industry and ongoing economic uncertainties.
About Hippo Holdings Inc.
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