- Earnings call transcript Q3 2022

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Operator

Good evening. Thank you for attending today's Hippo Third Quarter 2022 Earnings Call. My name is Megan and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end [Operator Instructions]. I would now like to pass the conference over to your host, Cliff Gallant. ahead. go please Cliff,

Cliff Gallant

at Good McCathron quarter And Hippo earnings announcing Ellis. Officer is shareholder operator. be discussions joining Chief Chief Hippo's issued you Financial Hippo's letter Executive available which results, third conference President, its Leading afternoon, you, today's thank will Rick everybody. and for a investors.hippo.com. and Thank call. Stewart Earlier Officer,

questions. will remarks, management's we open up call prepared to Following the

forward-looking discussion begin, and I'd remind will of as like about this contain business other statements, our of presentation. our on expectations, we information Before management's based you predictions, the to are date that expectations that current

statements business Forward-looking expectations and performance Hippo's and to conditions and not but include, in limited outlook. financial or predictions of competitive are industry

subject could filed risks, factors our differ to results to forecasts, other and in cause X-K today. forth from set actual Hippo's are historical and/or that materially uncertainties Form including Forward-looking results from our statements both

and refer Risk factors For Factors. please entitled whenever to more statements filings in All sections Hippo's any other discussed cautionary information, we are to particular the they make statements SEC applicable risks in in forward-looking the appear. uncertainties

risks carefully discussed Hippo's undue other any information, statements, any disclaims new future filings. altering otherwise required and You consider updating, or in is place statements by whether and except revise of as reliance forward-looking obligation Do factors not as law. events forward-looking result expressly and should SEC on as Hippo the no uncertainties or under otherwise, responsibility a for

premium and measures also to financial generated such call, - as conference will total EBITDA. During refer we this adjusted non-GAAP

our full third our can Rich And to furnished with I'll to shareholder of which quarter the be the has available and a turn that, found results GAAP non-GAAP and - financial on CEO. over the and description GAAP SEC our measures to call letter, McCathron, website. been XXXX President in of Our reconciliation with

Richard McCathron

and growth itself proving one challenges model our worst are and loss best events hurricane in the that superior a joining home homes. from We their and in technology this are and thank help executed like confident strive improve those difficulties leading hurricanes history. technology us model customers you such underwriting homes enhanced and and Hippo, to remain an of is enjoy afternoon. stack. get customers major industry services. building enjoying times chain Hippo's paying for And to through help In Despite the off. some But goals dislocation, of protection unavoidable. our do ratio. to our Good on through business our we're supply We've investments losses we inflation, At dual back we year's

proud of the tragedy I'm quarter, This response Hurricane Ian. to of Hippo's

half Hurricane As Ian we speak, of well have reported paid. been over claims

while our a to on We crisis are promise in financial customers our delivering executing our on improving performance. service also

experience while Our reached account Hippo premium as by commission net end. the revenue acquisition placed customer customer Hippo policyholders and generated our still XXX,XXX is agency Customer Hippo accelerating well third-party receive total who Included base in quarter's growth. insurance customers driving as and homeowner's carriers. steady with our retention

policies, across QX. in was Our and quarter, premium XX% from XX% the both retention Hippo Hippo in blended agency up customers

prior staying was us. accelerated versus GGP happy XX% up with are are customers growth the Our and and quarter. year

attractiveness distribution for growth. in best expect our ratio the loss of continue our model our partnerships housing We will to lead relationships and channel, is we strength Despite to in markets, see which continued slowdowns segment. new builder strong some

characteristic group a of third homeowners. to better, and great of of growth is including our all we for portfolio be homeowners. a targeted diversification account maintain to protect states attracting having Massachusetts. York, use to was to XXXX, target we entered call key We with technology the and their the a, U.S. in desire XX% that a and marketing Through which also have homes, our the we New efforts generation of where customers, estimate year, willingness expect over business better Carolina and the over in With proactively higher our geographical in A customers. better increase better past success we North QX, generation care generation estimate B cross-sell services. loss of we ratios, cohort, retention, we this consumer to as offering We're home new an our expand opportunity

XX%, pressures loss year, ratio have Excluding last improvement of from Ian, conditions, Hurricane percentage the where challenging results across the impact inflationary dampened was XX industry. of and in gross QX our QX despite points market

platform book our quickly industry integration leverages technology leading data and to trends incorporate into inflationary re-price rapid Our pricing. re-underwrite and our

market, gotten balance. we've our target geographical addition, improved and better at our attracting have In

these and our We to of platforms become underwriting increasingly continue to over expect the trends apparent improvement superiority time.

event that I about Stewart, say that While level this in note we'll to wanted homeowners more Ian were programs. million of a $X.X consolidated related only to only losses Hurricane Hippo's to and from Hippo moment. at a net XXX,XXX the

from space. small that net made stroke Florida limit luck. decisions in Our losses We've exposure of Ian, our simple a was not strategic Hurricane in that

been we Florida due our exposure to have about to portfolio legal weather unique both adding First, environments. and the cautious

intended design the EBITDA quarter million When our despite Because growth QX, ratio Hippo's $XX improvements loss improvements We in Barring reduction taken thereafter. beginning gross history. loss have million, underlying million new quarter. our and nature's whether the $XX.X million, expect effect. below we able are better adjusted XXXX continued $XX.X Second, revenue EBITDA actions we've are losses with builders said, our technology that expense QX, expected Hippo beat to to and homeowners in adjusted accelerating, in their expectation be with the latest including adjusted fury. craftsmanship our of peak XXXX events that will is be worst industry unusual our one we loss home XXXX Hurricane business program, we Florida reported and $X.X we and withstand through third to exclusively of related to loss loss was of XQ Ian. EBITDA construction

customers We fourth to expect in have invest technology launch capabilities experience. a and to our our Book drive continued we for mobile growth and service will like our quarter, highly professionals long-term who our and in improvement connect to help Pro with homeowners rated feature plumbers home provider from In via feature network. a superior app. customer new also electricians This Texas the need

locations, home quarter, We're business our to very achieved to of and Additionally, of get across mobile and message to app. these able proud via capabilities be aggressively for customers' goal the as of Thank what We we're home becoming building. will customers part our care. care experts of more our you. this our providers go-to-destination aim have advice services scale we our

like Stewart, the our I'd call turn Now to over to CFO.

Stewart Ellis

Rick. Thanks,

our results, third path financial profitability. Our quarter turning point to the we reached have on demonstrates that

As EBITDA was directly Hurricane the million, result Rick are loss of $X.X mentioned, third quarter includes of million $XX.X that expenses which Ian. losses related our and

Investor our indicated expect and we substantially robust by improving profitability we Day late forward, XXXX. In also while the going achieved segments EBITDA quarter, fourth ratio. results our September, third improving XXXX at the quarter in loss and our adjusted As into with we continuing geographies, growth across in had

Let me highlights. few provide a

in accounting that and are attractive monitoring the Our agency new other home business. options. standard remains agency highlight channel our total ratios constructed XX% homes and for of a sensors builder equipment is of loss with The new thriving, fees premiums frequently our half quarter, builder of portfolio, as with business and and nearly Hippo generating safety

at growth, $XX to has like In our we historically states. continues business with strong non-Hippo geographic At careful premium and Texas TGP fronting presence and year MGAs to continued the services XX% represented and towards and million from states fees exchange As and grow, as the both those up they mid-Atlantic. Hippo eye mentioned, saw XX% balance largest the blended quarter. quarter. saw QX, retention Northeast ago in policies licenses XXX,XXX our growth our sheet retention in within in fronting remain for provide the a a build coming Spinnaker, reaching million customer throughout other Rick for customer we of during that Hippo to the we access customers but QX. Spinnaker’s on in California, insurance in across and premium We our Demand improve in from produce. base markets $XX also begin agency to customers balance quarter, our in up products with XX

revenue supported in an acceleration $XX.X reaching which the XX% from relative million All our up factors year, last of quarter, to growth QX. was of these and QX our

loss PCS including and an Rick Ian the QX loss eight developed ratio quarter, early in gross would net re-underwriting percentage our highly is a consolidated million of and representing impact the first level ratio points Hurricane half XX $X.X of As a and success our With XX%. events. percentage points encouraging, by non-PCS actions events, points, points $XX.X again on and and of indication XX respect of than ever favorably million program net loss at from gross taken Hippo This of XX have gross ratio, both event percentage the been points benefitting previous in period at rate the CAT best excluding percentage XXXX. At Reserves Ian ratio. earlier, a and efforts mentioned industry basis. loss to meaningfully the Hurricane gross percentage Ian the performed net was of better XX loss the from

program. gross million level, costs at net Even back $X Hurricane percentage full stock-based $XX.X nine which above the full of The year into opportunity team gross reflects marketing Stock-based a to administrative compensation increase. our $XX.X representing of million. efforts and much $XX the in the of ago, incentives market quarter's stock $XX.X million prior recently related to versus was $XXX,XXX half this impact only year increase development are rate in expense loss run-off losses, of relates $X.X losses percentage of year ratio. million the states. with million, ratio Ian quarters of of were of consolidated five The year our to we the higher we Poland. $XX of Homeowners drove million programs year-over-year. $X.X previously Ian that spring stock-based prior of million Spinnaker, guidance to gross the XX% the Hippo year. $XX.X versus year comfortable increase we've The acquisition the expenses net by compared to only remaining headcount of some programs covered supported $XX prior versus loss compensation million the though, of expenses points compensation and of the a as impact by other Importantly, for million run or year $X.X with XXXX gross of approved the Sales the were and marketing the and our million or first from in million to homes related refreshing million General quarter's versus placed less. in quarter or development maintaining Hippo policies Technology ratio points the prior and $X.X advantage were upped take of loss targeted

Our and XX, as unrestricted cash September million. XXXX were $XXX investments of

While cash we have of to balance yields. remain conservative the shifted as have additional related duration interest highly short allocation, capture highly risen, securities our rates asset in we our into

We quarter the to expect one-time year significantly, of actions. share, per end our are our a goodwill a policyholder like million prior decline million reiterating quarter. a million the I that in share going by charge and of in $XXX our compared investment off would the the $X wrote asset we was at full cost to maintaining will or XXXX year balance per slower $XX.X we $XXX.X and Net had $X.XX to close to reduction Hippo surplus cash remaining quarter, guidance. loss rates was attributable Spinnaker’s million. $XX.X loss forward. earning of of or we Most $X.X At related that million

the total midpoint We the $XXX will million the of $XXX for over year XX% range. million between expect be premium and up at generated

expect be revenues and $XXX million. between $XXX to our We million

will We expect effect our of loss XX%, the gross below Hurricane be ratio including Ian.

of XXXX. between for million, to I'll improvement turning We with positive Rick XXXX, expect the $XXX year be EBITDA closing loss Thank million to remarks. further over you. adjusted in and And $XXX full turn it end now at XXXX our before

Richard McCathron

fundamental Thank improvement have done you, toughest times, in gaining Stewart. what the In industry market others the share. have execute on of while we not,

achieve focus late a reach now to XXXX. is profitability, Our to by EBITDA expect we goal adjusted

and products offer we to excited to mission. homeowners. very and determined the add our we achieve We're American While services

be questions. we'd to Now take any happy

Operator

line the Thank My with comes you. Camille] Instructions] [Operator first JMP. from question of [Carol

is line Your now open.

Unidentified Analyst

good you. evening. Yes, thank Hi,

of you've view homeowner how fared from second a two are a point what from there any you a And lessons basically event? this is, think regarding then Just Ian question customer's that's you part and question, as - insurer young you - part. do I the do mean, first have part

Richard McCathron

- Thanks Hi, the for question. Carol, thanks.

I more how we pleased all, I cannot Ian multiple on and team facets. of responded think with First be the to

gotten, identifying we immediate First had sure stepped our direct to follow-up and that when team been prior within were were then the an the out identify the we all, to of conversations material very with to shared having prospective we've I path, those somebody few business and but think customers policy. make of feedback took any and a proactive testimonials would we promise hurricane that damage. we customers The make those on positive customers that up a that happening new fulfilled nothing

and an markets, underwriting important what I we really on do The demonstrates think offer. discipline we from we the product how this think other that enter have perspective aspect is I is

that with I builder's right when losses made Florida. I that results. enter from Lennar. the very in It's builders information the positive doing small coming our policy. homebuilders. on in all reasons why And difference the current we policies entered how one And codes, really more you like it think the at new we compared It demonstrated decision building So they we the new increase And of homebuilders look homeowners to very includes continue a Hippo magnifies model of construction, think come amount at why way are the of we we when bullish we home resulted showing our can out portfolio we quality of to how us. And absolutely Florida program the also demonstrated on on reinforced the channel. for be a and to we're positive that everything policies

Unidentified Analyst

you. Thank

Stewart Ellis

this that quantitative benefit And Stewart seen. that is I'll we've add to one

mentioned construction response. because Rick better rapid that you the know new and think expected than performed I we the of

that industry historical data. if performing coverage in than We're of what the you meaningfully would better at the assumed expected were based loss on look I have think for areas standard portfolio our based models on industry the effective.

And as model the to third below so We're estimate. us that is a encouraging sense average about quantitative a well. in

Unidentified Analyst

thank Great, you.

Stewart Ellis

Thanks Carol.

Operator

Thank you.

from Jefferies. comes Kinar Yaron question of the next with line Our

open. Your line is

Yaron Kinar

afternoon good Thank everybody. you,

the points so, if question of factoring you letter? only some XX% First ratio that number a more points, the of Does the the of I eight shareholders non-PCS I the think so XX call loss of points out it in? include development? growth Ian. of of questions that XX in impact development much excluding is And that favorable be how should

Stewart Ellis

includes of No development. points the full favorable XX

development, points favorable the have would XX absent loss been So XX% it or percentage ratio.

Yaron Kinar

Okay let on? me follow-up

Stewart Ellis

could XX%, Sorry it be.

Yaron Kinar

okay okay, it. well got XX

the I Where last so quarters been deterioration I XX% where has previous that the come think leaves than from this weaker guess XX% quarter? the So, of year? quarter the versus did

Stewart Ellis

it do as if a been in is quarter quarter's quarters, would development, in you of year, a me. the favorable the improvement have favorable each had last adjust each think especially year-over-year, think in prior versus substantial our XXXX the quarter's excuse I XXXX, it's this development have improvement, favorable I also included development we've for of meaningful

Yaron Kinar

that a bit Then can write-off Okay. what to that? then decision you the talk and goodwill, little maybe drove about

Stewart Ellis

to Yes, one. that so happy take

depressions cash if few over I think, significant in particular, goodwill. it's we look very as routine seen half test year. second market, our you stock, generally quarters, We've we with of our as our part at GAAP, generally testing in the in seeing the been compliance below perform past has in of balance. I everyone - know, the valuations. of that do trading And the And

some number and the concluded at overall that write was fairly to of we cash assess that that that the that it's justify is a company was to value and below goodwill but market the one a we taking factors, down. hard trading it of indication important given that looked an And so should balance, our action not

Yaron Kinar

on maybe and one final Understood end. one my

that the app, how open Can time, at a little through you it maybe and Day, about a business? Pro bit. you're it talk the had thinking at open remunerated economics you getting think I the talked Book about for the of you'd left Investor

Richard McCathron

it's think Yes, I important.

important is launching deem customer, fit. launch a the for sort - our of what launch we when do to it's we that so we're willing we that like think related We And generally a us any in exist, or recognize we're to for want of idea can negative type I a to to program, it's the would feature to What new, false positive to a optimize on this we or philosophical a something bring important, related Hippo customer. to market contemplating testing doesn't value don't our important when how what very going product. want product feel thoughts, to that program would pay they what of perspective they we false for from create be really that what they monetize that avoid that. to

mechanisms different later, joy something services. have our we're comes in perspective way the from protect the of that home best those the determine needs, once that total testing we wants, that's helping we've promise the we're of what customer met fulfilling exactly monetize our them So to But protection homeownership. know to which we and that

Yaron Kinar

you. Thank

Richard McCathron

that the by we Investor over we're We reasons did that's meaningful of not that put time. related on way, number a think the going why to that's Day, one how to Yaron monetize upside.

Yaron Kinar

you. Thank it. Got

Operator

you. Thank

Michael question Our comes Phillips line Morgan from with of Stanley. next the

line is now open. Your

Michael Phillips

property right of amounts respond a that of to such the bet Thanks, development is evening maybe favorable idea risky good on lots lines, do now? inflation everybody. How taking you there's

Richard McCathron

Yes ahead take one. go and that Michael, I'll

replacements some every guard. Hippo's cost Hippo's inflation policy there's building cost And you of every of I single renewal. we adjust inflation, a re-underwrite we single it usually traditionally, From companies - replacement at how the if run look arbitrary through our beginning offering, coverage, estimators. at in for think insurance replacement,

an we area in covering would covering if home, XX% was coverage see inflation make $XXX,XXX. we the So $XXX,XXX. fact, were renewal, and that we were example, we as the coverage building, a At

our We'll that level. the little a next and exposure uncertainty at if policy level that adjust we'll rate every it and renewal, a increase adjust high. missed if So are, the we get missed we dramatically what from we're we've it, trends renewal, and it, believe bit at any we increase on renewal low, inflation little next at perspective, bit which single we're at that reduces policy

Stewart Ellis

respect Mike, at And various this constantly curves events that release, reserve going are how development we're this indicate paid, claims reserved, customers' is we we're with claims you of the associated Stewart, to the Yes have that to IBNR we've know, for estimates know, we've when and the with those. experience looking various the received, adjust. develop. we And over actual and to for cohorts begins that you

getting our believe as operationally, So are in are at what sheet. to had to XXXX, any to it's for is we development. better an then, reserve, we've very feel that each and the the at been bringing we've intent not reserving is balance level about amounts the not experience good quarters terms different in the release of left future we've events on than us able of the bringing organization. since reserve, or have a certain the been the circumstances, that that to some - related large as we - us but of We And adequacy curve over of from past not that look matured very reserves reserves

Michael Phillips

they how particularly And segments of have and the that Okay, be builder might just your might talk the of business impact parts might business, not then about any and you other your - guys. that program, different the but thank program again, economic on what the impacted? of slowdown you can

Richard McCathron

good there a channel. I Yes, builder slowdown that And think it's is everybody's question. the a aware in

the at new I the this think depressed tip think, at in builds, early the of of a particular our if with you stage have that iceberg in consider that space. we partners level, we're the channel, opportunities we just even

have, our So partner starts think to funnel bring housing in reducing that and a there's conversations we area. massive given having might still amount be upside partners that we're more in even they that if the of

we will this So builders think and that for down several don't slow trajectory years. our

Michael Phillips

you. thank great, Okay,

Stewart Ellis

know, the materialized, growth. and still think outside in other builder we're think impact the meaningful you has I where, about seeing small we're things channel, And share increases we general, mortgage yet market as enough have rate a not

Richard McCathron

better for mind, keep industry. our as customer, And protect it - finding And target to we are they've I generation that and a that partner. customers to, as our these the new seeing only us moves of we was And that's customers, partner that their are found the identified those home, moved customers they a to looking not move in haven't renewal, into referring are in better and somebody house. newly number that's just These are that people house into switchers, they have we're that that generation them. not people a at a when switch significant customers believe

Michael Phillips

okay Great, Rick. thanks cool,

Operator

you. Thank

Our the Scott of line Goldman next with question Sachs. Alex from comes

Your line is now open.

Alex Scott

for thanks question. Hi, the taking

you guys First had reinsurance I know it's I bit longer term on relationships. one a costs. have just

wanted understand potentially I make higher So I is input important path reinsurance to its to how costs in. your of profitability? an to that mean, could way just how

Richard McCathron

aware a point capacity a pleased pretty reinsurance an question. I'm Yes multiyear is both on Alex, in we hardening several with perspective. pleased partners. of have think way, really your it's everybody XOL a market quota be significant I that And to perspective, and that good the our should I'm share

are not for replacing looking renewal, given reinsurance we entire any renewal cycle, and the at portfolio. reinsurance So

that our they generally allows to have do. ratios. quickly. dramatically And capacity, improving ability looking us when the their they people have that also tech something to for are looking We And to where the stack are benefit at of that's react loss want deploy reinsurers

is great of inflation think example that. a I

significant think we that one outcome, be an one. shift When we not and the there's we capacity take the a space. to reinsurance aggressive that think during we're our an what we finding industry-wide our such relates is Investor performance forward, Day, as a I is, that likely looking to it as approach generally So within likely we demand going create pretty displayed

So ratio participating that given builders from fact segments multiyear business, reinsurers which positioned I on. capacity. that we we're our in in And performing improvement do the perspective, is well exceptionally well loss are have we the of given are the think very like our that business have something interested

think the a is little something to it's early So market tell, of not hardening given still this But is is as at that retro I concerning that well. the point. this us

Alex Scott

I'm it, The was other thanks there that. Got Hurricane Ian? bit tail, to it any from that for Hurricane you as consider the question loss I we the like tail kind to I net - ratio? had mean, related when or Ian we about, think only related is there's things just, way need consider through, to just all arrangements to whether it's that work, little thinking do commissions MGA Yuri, reinsurance a need of your of

Richard McCathron

it this, prepared out a legacy loss The the Yes, on business paper said you're remarks. I exposure not our in on program. in significant Hippo that no, the to some the event we Ian is of gross not Florida. us a answer I was I was loss think talking did do think point fronting have if Spinnaker the specifically, vast about Hippo was from want majority

the stretch specifically, imagination. significant was Ian event not from So any of us by a

unique example be where we have do where our actually next or think and construction Hippo new I the to industry thinking put to I neighborhood And with damage. want that XX of building construction the XX massive you're very question, builders a damaged - wide, old, does after are in had proposition. reinsurers performance years that In homes see little homes Ian in versus that new does or are had is cap areas those example, our can door, ask a prone areas think cap exposed neighborhoods capacity motivate might new that that you XX better. have If

bit be it a think headwind I wide actually looking tailwind. I'm industry us, So there as of a from there, but a may at

Alex Scott

you. it. Got Thank

Stewart Ellis

Okay.

Operator

you. Thank

McJoynt line with KBW. the comes Our Tommy from next question of

now is line open. Your

Tommy McJoynt

guys, builder spend? Hey, about your will and my you growth of Is if need grows? going touch JVs how impact How builder be channel marketing sales that for questions. and the spend think marketing fair could and marketing the thanks the that relative taking it to and And the does do sales forward? amount you as on sales less to think spend

Stewart Ellis

is Yes Stewart, the for thanks this hey, Tommy, question.

sales things say and We've marketing. balanced where primarily approach. lens policies trying I'll customers think, had, fairly sell a go-to-market through want think to I We our as always a of about them. our couple the about of buy to

new those customer buy our customer And directly an us, brand customer's through agent, it wants buying those buy If in insurance wants us. we'll directly channels. it that transactions. so if from if easy our from sell sell ours through, through to of to partner we'll we a independent home, And or make a a very by embedding

have to our spend and market that an we on respond to the sales highest in the changes are marketing can. conditions and the to we to to return where ability environment, things so, and tune those investments And achieve

really results in we're taking during out where didn't And action states. the new things existing we're new aggressively want been that is states calls we've earlier and approved adequacy in to and in rate One to that, of year. obviously we sell possible into that rolling we so also rate sell not been states we or, XXXX hadn't gotten the is our happening said in. the We've in states and yet until

QX. spend out more are quarter That's states where where area as so been wisely. you like able to third it as those able marketing why like gotten that's see are sales dollars. feel relative of feel spend areas broader adequately in roll and to we new marketing to more And we've to our country we to priced properly we are in in we rate geographic states adequacy we've dollars and gives and the existing our priced, And us the climbing able have because we a

or With spend how the impacts acquisition direct user oriented would partner make I decisions terms builder the based think in dollars it that's directly channel, we either to don't channel, of in channel. a the dollars obviously, brand

our So is the spend to the to designed their attractive agent direct of partnerships independent are our and sort an the own. dollars we've independent channel. in parties economically marketing channel or builder the all channels - ability to on be with unrelated to partner And

Richard McCathron

to been and looks we company just of the really customers have never of clear, cost acquire be to be at Tommy that are LTV. we Yes, type the to

just has acquiring so that a through think our business other omni-channel existence. we whether And And of discipline, to believe acquisition and business business any outside maintain business. thresholds, of of agent, the we are in zone form comfort customer that not approach discipline, have positive LTV, whether gets we builder, throughout very in some the direct where lot we our within particular discontinue or is that's do threshold or through our creates buying if it that We're a consumer type whether through of a partnership. of an that that's that's our we'll we discipline until

Tommy McJoynt

guess? of comments. just the just you Got much for it, versus thanks, structures that builder if through partnerships, traditional me said have, channel volume I And how is JV then your remind you more if thanks those structured you

Stewart Ellis

the for JVs. channel well very works this builders. at large most think structured point, of the And through I is that builder

builder the complicated be expand individual may For builders. in than level sense of investment bit for those as we the and more more makes broadly, builders, smaller that universe, upfront a

up pay can to third-party arrangements, our policies we leads we simplify that so, sell other or would front where options to policies through for, other for agency. we that then, do And our have those

percentage but on as just venture. think more I as joint universe, mostly moment, the roll it's the a builder you'll we So rising a more that see model, in broadly, we are at leafy out

Tommy McJoynt

Got it? Thank you.

Operator

There of [Morris comes Our waiting time. this line question you. next with additional questions no Companies]. from [Operator at Thank are the Instructions] Prop Prop

now line Your is open.

Unidentified Analyst

you Hello bank. building a businesses, the and And the skyscraper, till you've like like good is first a of I'm cash problem end far, better through in they model. know, the it's talking the burned a like The quickly. profitability rodeo. years. when you of billion. cash bank, sorry, $XXX lot the start lot I about have got that pretty hits you've so he you $XXX And, got This the guy $X you're off of part my thing is I in two and jumping everything. don't and is of know, My like everything's investor. only at And $XXX,XXX new business a ground. spend I people million not your million

So, not like you would really to of guys sharpen investor, I'm I an profitability. like would you on your start earlier And attainment pencils. an an I'm focusing I But analyst. to

that Anyway, you. here, cushion million new that have the investor. you Please, to think Thank opportunity well it's think you as you I great is great And a leadership. right $XXX extra don't just have fat. I you a guys gives got comment. wish

Richard McCathron

to anything first the spend a us you. do and we comment. reiterate other at because I'll I the that think having have appreciate for Day, don't investors. the creation investment, that war Investor think Morris, thanks in agree thanks the something with right chest for money that long-term for given we than of We we all, value - said the fundamentally I

of positive, And it Day I business to to to completely without intention things good outside be get specifically the need any flow capital so barring is is cash continue on that stewards to of one Investor to raise the dollars our unforeseen said the circumstance. grow the

a discipline have in of company. We lot this

when be have I that we that the the of technology war we between important it's absolutely think do everything And balance insurance even we thoughtful, and company. the chest that very you we have with we do. agree and have do I that to

So comment. the the I with appreciate agree comment. I

Operator

are There no this questions time. waiting you. additional at Thank

the the management to back additional for conference remarks. over pass team I'll So

Richard McCathron

we very Thank talking next joining with you much. thank you forward appreciate to everybody quarter. really Great, very look you We much.

Operator

the Thank third concludes quarter That call. XXXX for earnings you Hippo your participation.

You now your disconnect may line.

Hippo (HIPO) 11 Nov 222022 Q3 Earnings call transcript