Earnings call transcript Q4 2022

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Operator

Good afternoon. Thank you for attending today's Hippo Fourth Quarter ‘22 Earnings Call. My name is Hanna 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 our host, Cliff Gallant, Investor Relations. ahead. go Please

Cliff Gallant

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

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

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

site. full XXXX our found can the which of been shareholder in and furnished our and a the results GAAP non-GAAP GAAP financial Web quarter on description be available measures SEC has to letter, third to Our reconciliation with

turn CEO. call over And President I'll with Rick McCathron, our that, to the and

Rick McCathron

not analytics and a them to in experience XXXX high have down protect simple customers is largest to also developing recognized over better US brand, the bold partnering profitable with any place, national advancing a superior XXXX volatility was the Hippo have progress, players vision the none a It capabilities a helping insurance XX We insurance change years incumbent endeavor carriers fates. bringing enough Consumers to company. this of company. imagined. service takes time homeowners positioned with comes in a aspects foundation of deliver. in customers, With Hippo's and Hippo well and expect homeowners by fundamentally The of on Building was past footprint carrier their bringing firmly experience other the average come customer long our improve portfolio, homes. year than for a build time build insurance data rapid happens old, Success underwriting Good side. the explosion this together afternoon, a company maintain are Hippo decade to over the best-in-class it everyone. founded to have to consumer overnight. complacent. could to their have of standards the and Rapid legacy possible advantages policy firmly they but two in on become of and exist, faster technological the and a believe XXX has only like far and made of of out while

put modern we care. Hippo of forefront best of and best with customer a experience the so the unfortunate things claims protection, partner innovations protection long at loss around, customers handling happen, Hippo being think make will over in customer the is term. When the prevention the First, us our can

we to deliver are of By now our improve that of insurance, using foundation. as technology profitability financial built a schedule our our the our future to to Second rapidly last. towards company is and make marching as ahead ability of the fundamentals rest creating strong on

prospective our within covering added marketing, highlights fall of targets of Pro builders, new products enables over available improvement XX in loss better all of gross states target we're for party selling ratio much third as met percentage XX% customers and XX% targeted making improved of repair also XX order market; KPI both a use diversification, Builder our network our versus satisfy of their exceeded some develop QX services improved a improved including We Hippo we Hippo Hippo. providers. non customers of and of to Hippo cross policy claims We've the fixed year conditions. assess to insurance Book builder our Here full year, flattening reinsurance added in homeowners. to new over what our XXXX; Hippo operating of ahead geographic and builder and getting months. are which And we recently of pilot to points ramping with catastrophes. damage XXXX. look our program for imagery launched in the the network XX had our generation XXXX now launched after Hippo's XX% in customers group saw finally, Texas, we've through terms Insurance XXXX through our rapidly of home as We population; costs, a over allowing on experience TGP expenses. back experience a growth for and and XXXX we're small home a to the aerial with use We've successfully of We customers of our of placed regional app partners auto of new to agency, the builders the needs up we last and Agency as curated We're larger

but lot as we a of in are company. look We Hippo, key have our going for there for a focus out XXXX, on areas few

through third want agency. sure our Hippo buy of we offerings our insurance a to one all of whether party First, home they a have make or experience, superior customers that Hippo policy our

show the actions which as Second, shown progress, insurance that our Hippo loss will taken already more the results. we've into net their way ratio, home much work much has already

differentiator Third, we we the are our investing a experience business, become come. of key customer will homecare to in in Hippo which years believe

to my first full CEO, and and our journey. is customers our into XXXX vision not begin execution your it joining to vision yet for us now best and The our I turn the exciting more part I achieved could turning on a Hippo’s on come. the about that financial most excited I that shareholders both our reality. few for in calendar as we year Thank As you more for over to is be details share this support Stewart will performance.

Stewart Ellis

quarter, took another forward adjusted an improving our along fourth loss million, the In to profitability our step upon EBITDA path XXXX Rick. Hippo you, results. Thank $XX.X with of QX

to growing becomes an beginning XX% predominantly presence year growth the by state launch mid-Atlantic. been footprint for positive about largest long of designed our agency for We’ve thriving commission a but QX as in business, our build growth which the for drive across we higher saw our has that policies line We and Hippo guidance. more with rising strong XXXX cautious expanding to both increase it $XXX announced remain regional business our began term builders. quarter, services and as our states in XX% most full profitable coming achieve channel million TGP to product lines, our and more strong products retention and distribution northeast our throughout retention over Demand XX% the of taking up home and Our growth economics in sales the strong fiscal driven in builders fees the Texas QX, TGP our the Hippo with income, Builder in rates end Insurance builders historically remained and we are profitable prior the growth. in premium to year seasonally recently in include improve quarter, was In services continued smaller home $XXX and quarter recently is XX in typical from in saw customers blended TGP markets embedded of original nationwide. We're QX. to where in XX% small the will We've our our growth Agency in and fastest to balanced. operating leverage bringing XXXX million, growth we're in to accelerated year at QX. customer

Our quoting technology a partners significant lead builder to needing for with us term as over built the long material we without a this weeks begin new as outside to see invest two allows of half homes opportunity. in in builders XX little US, resources responsible as the of top the

TGP. centric carrier added platform offsetting home, program programs off include carriers help agents Another percentage by part carriers fronting $XX of insurance the general digital boosted agents sheets the specialty providers. exchange QX, the non-Hippo they underwriting cyber, the our put our stores of produce. services several in new nation's Hathaway's our At insurance be auto, access insurance Connect in and In roster Hippo premium over often was quarter. independent keep programs of where to services, home designed TGP lines million results across the program added is agents bundled the $XX business, recently variety support and managing mid-teens. our In year, on we lines a of In economics First an into can to was additional growth million prior to up provide of small to and volume insurance XXXX, access by top the more. and Berkshire launched that sales. fees from life, in store business that agent access from that carriers earlier that growing products of increase are performance, small a carrier lower the products This to the driven in other biBERK to TGP in we numerous and to year discover we for underwriting The brought Spinnaker’s business business. rapidly quarter, run providing Spinnaker, on platform fourth XX eye balance provides our which licenses online,

to significant and including and economic higher growth and to expected drive what loss environment volatile new of ratio proactive rates, over pricing be course Over significant the handling with of executed a XXXX, net reunderwriting inflation about we which to reunderwriting challenging the repricing claims actions, more are In improvements. course continued action, matrices we've XXXX. and improvement continues be

XX% prior over million, year quarter in full guidance. Our results bringing the was the quarter up $XXX.X year line our revenue with to million $XX.X in

retention growth, XX% treaty as ahead, XXXX to expect premiums will lead reinsurance our earned. we strong new Looking above very of higher net revenue

going Our storm X winter QX accident offset of to points. reserve days history was benefits CAT the quarter QX’s which company's best from QX. since points, gross points loss favorable We're ratio by Favorable our year public. and ratio loss releases benefited the PCS from of happened which in to losses losses from in defined reporting XX current were loss due were development gross because years XX% prior our the also more initial Ian, XX Elliott than in final Hurricane is largely pick of CAT QX’s by

from For focused XX% claims our XX expect and increased the We've full percentage points and in ratio our XXX% our ratio channel, many customers, loss generation underlying including to gross drive in more year-over-year improving improvement loss growth XXXX. XXXX, balance our of better reunderwriting, processes. geographic builder target taken actions better marketing improved on year, to results, ongoing repricing, we

this revenue, to expecting flatten improvement operating our the TGP expense continue next our accelerate positive items to leverage we're over to or grow XX line and achieve we to also year-over-year. decline beginning as We're months. XX As

the marketing up compensation, year. Our declined. were marketing based and But the of from $XX.X spends in million prior $XX.X our has in stock quarter increased million sales costs outside

geographies, word on desired Looking reaping service. our targeted focused of demographic ahead, embedded of be and mouth and our the strong while and marketing the our rewards benefits will partnership more customer also

from rightsizing continue our and Warsaw, which technology in team $XX.X differentiator view focus to We're $XX.X decisions we QX. platforms, in in aggressively and the investments technology development costs made Our down as in invest we our we Poland. million, committed reflecting to were development key million, a

and $XXX line in our million were the bottom cash impact were the to G&A year and at down investments cost control. see Unrestricted of quarter XXXX emphasis $XX.X expenses prior on million, $XX begin million. Our increased December to from XX,

growth. from duration While year quarter prior support into our $X surplus conservative our in highly million allocation, up of largely of Investment million, from Hippo short the of we're million contributed XXXX. and year the contribution $X.X Spinnaker’s securities. quarter, we than to million $X rated to future million in see less benefits Holdings asset at in in a from At $XXX remain shift up policyholder was income by the the million highly QX $XXX QX, end, $XX end driven beginning

to during per was adjusted the quarter. of prior versus attributable prior loss year share the to net $XX.X or $XX $X.XX $XX.X million $XX.X On share quarter. million $X.XX or year loss basis, loss compared million the in quarter was per Hippo Net an our EBITDA million a in

As would our I we turn like our to to future, year guidance attention for high the level XXXX. full summarize

nearly grow our XX% by adjusted revenue over We $X will billion, expect we expect will consolidated to grow expect our to EBITDA be $XXX million. TGP and loss we

We be also that outlook I'll package that positive our close which lines site, EBITDA out reiterate pointing on in detailed we've XXXX. be under our and we we’ll for XXXX. a Web information posted our individual the that will reporting supplemental has year expectations adjusted business by end by analyst more

additional that, to that understanding thank time today for for line the to open detail in you like you'll find trajectory. I I'd helpful Hippo's and questions. With business your think

Operator

[Operator line is Instructions] from Matt Carletti JMP. first of question The the with

Matt Carletti

I the new program year. was comment out you place you could hoping reinsurance start that put the on to put in you announcement

way two pieces know understanding financial it's to approach as impacts. misunderstanding one to go earns do loss If then put in some more it dynamic reinsurance ratio the that gross Just I'm being it the loss I'm I But in you accurate? it Maybe what come the expect is that. down place the feels to like is it should ratio a of done terms start should across environment. correct, is, through year? net it or we to in. look its And just

Rick McCathron

beginning in and I'll the with go can with start Stewart then ahead part and more jump some specifics.

improvements, years. I been to Donohue. Officer. team that improvement very do our the loss two geographical us from see of all, significant the and period. support strong and been his group, of the instrumental we the have time And for He's achieved to nearly now with Chris Because Chris want in is such Chief these ratio short in diversification we've though, introduce First a Chris markets. Underwriting reinsurance did

had bullish you terms things, fact, program. this improvement, I calculations, that actually the reinsurance are these achieved mind And reinsurers we've improved and the difficult of where conditions looking already tremendous more current of that's the Yet, retain market. all to into because of the to sort weather. to are going day-to-day we're balance shifting they program that during still sort risk of participation, and we that nature treaty. for a losses. environment on in control sheet of actions as attritional a such can put we they because keep very everything protecting control, that nine structurally of all level. we're In an in place outside we that are taking think the of very our evaluating much do items areas when participants And amount on saw rate had the pleased where we bringing And our the I am forward the

kind you to components. structural in? do want the of that's Stewart, jump So

Stewart Ellis

to add XXXX. a of color here in the happy the of treaty terms of financial Matt, bit impact in little

Rick the we're the is structural in also with but retain. As line going more we treaty bring that said, in retain the the shift premium making losses that to we XXXX

rest, portion XX% XX% loss we XXXX, around the In has retained treaty XXXX come closer but the the of only exposure retain participation to those retain much going for the non-severe meant numbers weather features premium. of that together. are Our about of

will portfolio is the XXXX than XX% category in is underlying XX%, out treaty renews, retained way exposure into the is to up non-severe going increase the premium see retain exposure. much financials to on in our you'll So to policy we're the from each as around work the to itself premium larger that XXXX transitions as economics but our policy so the the financials. in The that up treaty, weather underlying play to start

when mentioned the and the economics be gap ratio. -- When in QX, loss So most between -- the we look treaty. gross XXXX of will still net you on

high continue retention. it quarter be ratio much, XXXX, because the underlying So to to loss and closer. much by that net of mismatch of loss fourth there, expecting between premium we'll But a retention see still we're

I XXXX, range XXX% So quarter. the probably it's of loss in the to below the it'll ratio. be be But along plus going XXX% first would say end in by down gross the with

Operator

next The the line from McJoynt question is KBW. Tommy of with

Tommy McJoynt

disclosure the So at I some increased of appreciate level. do the segment

the subject it guess, loss that either sort and thinking XXXX, ratio that what of describe you could you longer is then sum just of or that just volatility? business how see about mix, up, is on I this of not in or And could revenue XXXX terms to you mix earnings if shifting? either If term,

Stewart Ellis

context think the just terms of bit we about start think of how little a giving I by I'll in business.

the So increasingly, a will market, limited who who as people from people not agent. as view but buy Hippo are also we to third-party differentiated viewing include a Hippo Hippo covered policy, we're in customer by as through which the experience, an carrier policy

XX% based services and our to basic by you into you if no of model, laid exposure, if talk the at revenue I'd categories. business package, guidance. with fall they components calling the so recurring all that's we're premium. you total take -- business XXXX XXXX And But classify our expected three underwriting everybody fee out that mentioning This appreciate so encourage of it. There's supplemental about that generated where is a package, and in look about we

insurance renting our the that's premium. which total has economics primarily generated in business support based fees, be seen about fee for are program home generated program total our primarily on where XXXX final where balance the as revenue XXXX exchange that'll that XX% limited the them XX% business based sheet is exposure other And to by the expected results, underwriting second Spinnaker underwriting results, that's our to we've our Hippo about The is bucket we MGAs of that's bucket, of premium.

Rick McCathron

very Tommy, we underwriting generation different partner ability think actually have partner truly I of this have We a of well business all place if I and procurement a options protect still them different have we want don't aspects of them that a the thing. one to helps needs or one could our their with customers actually and who of to way necessarily think their When might the add better meet home. the appetite customers. model. help our that more underwriting appetite fit carriers

Now those provide customers home and to Hippo over time Hippo can still we home services care.

it So more does care. Hippo home including generate really cross-sell of participate party would combination in experience Hippo customers a place where Hippo home environment the the policies, third ability that create an to is policies and

Tommy McJoynt

you just And could Stewart, if clarify.

figures mix ratios those of you TGP think on generally the those, So earnings percentages contribution true? I of a just basis, hold about do guess, kind as those or

Stewart Ellis

a the there. the expect that business for good improve because But the question right track XXXX, look to and answer As still of on business the long-term. different are that profitable. but the an rate, idea economic a is it to the be in plans and working we as to we services at would calls, Because feel previous from in in Hippo think business very rate over XXXX, loss as underlying us there right on confident improving be primarily lose that's XXXX ratio. profitable not is I lot underway the A money undertaken to than that now is discussed we we're we're activity the standpoint, that needs is the on that loss largely because we've particular

time to is expenses. ratio service And be profitable I bulk losses down. insurance are from the a the is losses the XXXX business most going as comes feel from loss expected as we for the coming as the said, in confident of oriented The business overall actually come and Hippo growth the Hippo be program consolidated to going shrinking to program. insurance of so very those over But are

But package same that yes, detail So long more of term be, the to today the the going as is think businesses -- what we we the profitable. can are on in talk these expect term not contribution supplemental each I released guidance because be today, to there's long I there.

Operator

Kinar The next the line Jefferies. is Yaron of question with from

Unidentified Analyst

views 'XX? you This Andrew is us Can help needs adequacy think how rate for and its for on Yaron. company pricing about the

Rick McCathron

Andrew, a is take. for question I great think to this Chris

do you to Andrew? that Chris, want So answer for

Chris Donahue

organization's overall the the top The we rate In appropriately our XXXX we are to the rate started set we have to rate XX% in The The in and can achieve XX continue increase. to ultimately align made also filings in and to efforts impact written we’ll to in priority. XX increases ability to our improve so teens. of ratio risks We risk achieved that our loss increases plan will We're continuing XXXX, and level XXXX price been underway. put the forth about need in XXXX we've states. those of place of but take that benefit XXXX XXXX, rate XXXX, rate improve our and XX the going marketplace. already majority forward. is high In goal in earn

last filings already filings see having loss executing achieve the of we'll taken pretty years already the So in that And and filings we XX in forward. the we the to necessary same results departments been significantly XXXX two strategy We've that going with insurance. effect significant make in XXXX ratio earning XX that we'll thing also to significantly will of through that compounded impact impact, see XXXX see states. that of the continue submitted these ground much that, rate and loss accomplished but in we'll XX% and of do to the

Rick McCathron

and rate be. identify loss going already level, take current explanation what these changes out I and both because reinsurers ratio the to that the of to comments into is to term all the very related both medium bullish everything aligned exposure my and reinsurance up taken, with forecast reinsurers much is have, this take actions account long and opening nature our think rate

and So the that underwriting actuarial already activity team pleased we're really the done for at XXXX. have

Unidentified Analyst

XX% we that improvement into 'XX, 'XX? improvement correct the as think 'XX accelerating? comp as relative over to ongoing about the of underlying should And the we last year well, in given just actions here. Is the rate perhaps think the and So about XX% in the pace

Rick McCathron

your Not totally question. following

Unidentified Analyst

at As basis think we about -- loss XX% that from as in and was 'XX. improvement the excluding about the we look CAT gross points year-over-year XXX ratio, XX% POID

just the loss rate filings, we improvement a underlying in expect stronger ratio given should in So pace of 'XX?

Rick McCathron

Yes, XXXX. the as pretty you continue do to -- This to generally we that that taken the into we're get loss great our as is presented flow these work the rate of there. we've help during our Day we're positivity track actions very good confidence themselves underlying to and We're what by Investor very goals of actions we significantly. rate achieve continue going feel portfolio, ratio cash have that end why about on much going to

Stewart Ellis

to color just bit question. of little also add to love a that I'd

the every you basically, easy in the And and lowering think the seeing think if the in what to actions come the is not to geographic what's loss questions, portfolio. diversification that bit. the overall CAT been through business we've live in risk despite you're has see ratio don't I results, actually the all this just a exposure day little down only core why I rate -- non-PCS

the is that's to the premium you that all state related so a loss. nearly And attritional in if low has a CAT of have home very risk,

of is country very have is and part risk. a you substantial risk that premium a the portion a for high CAT that paying If in that CAT of home

in And going improvements those because more the attritional so rate core that bringing for the as it and we we're a increase, plan of The we've non-PCS premium see past that losses. would the year. the made of the cat loss is overall pay be over down, portfolio otherwise the exposure would bring fact expect you to underwriting ratio function to down

Rick McCathron

I that losses. the say would thing way is we the of on really last category the this And topic understanding categorize

categories. have So we two

particular others if want of non-PCS weather, still it's other. in XX%, are that's combination refer helpful. all there's to, XX% claims to whether We attritional all and you non-PCS have weather, but whichever PCS that and The or so number

Stewart Ellis

at just also core XX%. was ratio can loss You ratio, core look the QX, look the non-PCS that loss

thinks are a So the the XX trend but of throughout positive average year, course year. seeing the a the over is we progressively

Operator

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

Alex Scott

First updated I so you reinsurance much on loss case, around have, way for the that’s only variability does thing have is have remaining? base for loss higher the you us. to how think program. saw us help through than the looks slides guys could modestly the I still retaining like in you're you Could participation it's just premium participation like What help kind good. all of a in that, we did Any compare still do you that's how have? what frame it that that to

Stewart Ellis

this. supplement wants in risk we're the of Rick features there to to to paid that for being ourselves. participation happy start him they're XXXX then I'm The ask some if still loss and treaty, I'll but add, taking

have So that's are general, premium. In the what earlier than the retain in trading. XXXX about we we higher said the corridors narrower

rates are they that more in did than less and at attach variability the XXXX. favorable Hippo to So corridors they there's from

expected percentage ratio, of smaller be overall our expecting our So XXXX XXXX. I'm a at to much loss than economics them in they in were

Alex Scott

that -- sort and mean, capital? understand be then And doesn't get And you looks a to risk almost well? much you than before. you how I it help there's it you I like capital, But more and as there’s X changes more me of I much times so could you you're more put to through that tail us true mean, seems more the us unpack and of in think part could a required no for it were us that place. that at too get more, says, comment retaining require this good that little help that premium, more bit

Stewart Ellis

X there's things is times retention participation modestly the not higher times the think the I treaty, because features premium actual not So X to underlying was higher in X loss going on XXXX risk it is closer The of there. retain what but though the two higher. so retained risk even is times

in an ratio reflects is treaty, think expected I the loss the in this thinking a So that XXXX way improvement about also the substantial shift candidly we're in economic XXXX. to but relative

The other…

Rick McCathron

the There's events states continue have or one as the to we exposure has actually all diversify, the PMLs is mind come geographically to keep of in fire. down. calculate like in to particular catastrophes large Alex, we actually weather other other thing from And look versus when too, exposure less you we exposure, like

to also So the has diversification exposure exposure total the the geographical helped company. on the

Stewart Ellis

And looked point A were to score And the make we we with AM I the on Best of actually then XXXX, the rating, buying. AM calculation credit our sort the the at reinsurance. one such was penalty was, maintenance BCAR navigating penalizing wanted a us risk minus we're of Best heavy buyers reinsurance final we as and of in were that

we And so get we actually bought AM actually participation increased our quota capital as BCAR reinsurance, less share and model. in the from relief Best

And heavy reinsurance. were such a framework, in utilizer a so we were because penalty paying heavy of we that

we're Now reinsurance from quota we're the sort of the taking. up matching and found we where exposure benefit share that spot the sweet get we

the function have it's a off the exposure So on we way you can and questions. further into of that hitting both detail go we're more if But risk.

Alex Scott

little more often you concentrated globally. a And bed you general in know you one about just exposure, think quick activities me like what earthquake earthquake lesson, one just How would California, more a in then I little seems mean. maybe of from giving out bit

way that think your to cover policy part program just a through, reinsurance I'm help of how like Any it you out with trying the would us like think of kind get is that they cover So but that secondary for to risk? may through fires I causes.

Rick McCathron

but XXX% And I following portfolio. we subject covered not think, would Quake be fire exposure the any right. you're clearly, mean, I is to in of is. following fire other have type

So it's us. for think significant you want anything we exposure don't add? a to Chris,

Chris Donahue

and peril it's covered a portfolio. driver feel risk programs is the us, it's definitely it within not within of reinsurance our peak but No, we managed for

Operator

of Singzon JP Morgan. last line Our is Pablo from question with the

Pablo Singzon

the of market, sense that's home was your you The to top there I more you Can your half sales as the market evenly follow onto opportunity first or of reference how you services XX% top of builders the the below the XX concentration is offering market. the one the that, but of thinking market the then on And it is think of I chunk your had about organization, a sort XX less good XX% a to are a or describe XX? just distributed? give there? in could

Rick McCathron

Even housing long starts, come keep builders. small much with for years, think a builder past, we is our agency call of the that percentage believe purposes there channel. we right such more in this builders growth established. XX, depressed And in is whether what sales to particular that impact compared does particular up the tail housing at housing question if a maximizing which still those starts, percentage mind in still that that the Hippo a I total total we are of local builders, the are how top of we're down or is million slowing that of are the we early over to starts those. XX, in a and to there funnel something small reduced regional the and has the and XX stages or your

by not of the being being long the XX builders. So majority top the built homes tail vast are built the builders,

opportunity really channel that growth us time. maximize an to it gives particular in So over

the way. most allows day, we've that transaction of relates new Now actually BXC or we end very is built to they working And is advantage we've the been believe the real the go partner. our generally facilitate a a organization, wants, quick that technology -- built to and in a significant when builder to which our in for because hasn't on to you're not with partnerships channel, built builders that close yet. files data the as the on quicker. house part, we at seven think to been lot quoting creating the wants wants builders that is the yet, get built to into that even close build if about that the is sales house not what builders section home of dream difficult. and get And sales that what what is do and consumer that's the time house, meaningful makes organization it model at everybody it we it to a insure for what agency looking And we house, the that their of And a traditional address has Hippo every it’s a you builder we six, the is transaction the in effort

Pablo Singzon

up? revenue compares I And question provide do think how sort if for agents? Connect was you as the charge versus alternatives then clusters the something you about you here, there model, context can out services provide? aggregators? you of think business can you out how ultimately, when it any against I did guess an the it through [HD] there, platform set And just independent that And But about overall First the go how there you guess of [indiscernible] second what's with my independent alternative and

Rick McCathron

that all, First an acquisition Connect was a of years first we So made ago. few

So it scratch. something we started that wasn't from

our what we've is have First technology since Connect First of that done into Now had. Hippo Connect infrastructure we acquisition the invested

offer that bind built So independent non accelerate the sales agents platform. really people network of for the agents appropriate Connect policies to has was of just And but insurance for to the felt quote Hippo First tools, independent tools for process. same it internal to our to we Hippo not these types utilize and Hippo policies

commission that from technology a we're split we that generate significant just traditional an we So that bind agents and not it's through providing. helps a streamline aggregator, other the it's other fees and quote with monetize services aggregator that flow to

it platform utilizes we So and we it's the already technology think have. that important an

Operator

waiting no time. additional are There this questions at

over closing So remarks. I for Rick to the turn CEO, McCathron, will call

Rick McCathron

Thank had, time you. in driving the are the and grow made fabulous I'm for more was today. ever of conviction very tremendous quarter company have than the to excited We've continuing a very positivity, business. you and metrics a strong fabulous progress of while joining frame. all that we've grateful for conviction, we year. short And us towards Hippo a of flow cash This

look excited to forward to and you next be everybody. news. at the So we're Thank sharing quarter presenting

Operator

for That you participation. concludes Thank your call. today's

your disconnect now lines. may You

Hippo (HIPO) 2 Mar 232022 Q4 Earnings call transcript