HIPO - Earnings call 3 2023 | Hippo Holdings Inc.

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Operator

Welcome, everyone, and thank you for attending today's Hippo Holdings Third Quarter 2023 Earnings Call. My name is Sierra, and I will be your moderator today. [Operator Instructions] I would now like to pass the conference over to our host, Cliff Gallant, Vice President of Investor Relations.

Cliff Gallant

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

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

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

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

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

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

whether risks and other is under You place disclaims or forward-looking adjusted as otherwise Hippo as carefully will filings. EBITDA. altering factors by premium statements forward-looking of any future to result non-GAAP updating, undue events refer also revising obligation statements, this conference information, reliance uncertainties and not as for such SEC Hippo's consider any otherwise, generated no expressly Do should total or new in on discussed and responsibility required as we except a law.During call, financial measures and

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

Richard McCathron

a represents a yet. drive now quarter and its growth our and XX% we QX up and as our and parts Insurance our premiums business volatility most best working. XX% predictable taking in afternoon. XXXX was are of insurance segment force, year homeowners profitable improve are actions profitability Service continued of ago. Hippo's Hippo, its The services Good our from in The lower to to

we Our We're expected August, necessary, pace renewal we new positive insurance of previously bold loss itself reduced XXXX first homeowners our rates, turn In EBITDA steps half and smallest writing and taken we earlier company, new on projected.After business. raising and period extended underwriting are some nonrenewing only underwriting of adjusted business most are profitability. where QX the temporarily confident we're assessing volatility.For for as was the and very increasing position to when a public has in than deductibles risk appetite book, a industry, paused our its and 'XX challenging policies. Hippo's to and for profitability a of growth Hippo U.S.

While programs generated to in and in that decline profitability. in a premium in disproportionate we by significant driven improvement expect a see XXXX, and underwriting volatility total decline exposure Hippo's a to home expect insurance be we

early in loss operating and see And movements a year XX%, our HHIP's quarter XXX. concerns segment Insurance income TGP already XX%. market additional of a percentage positive ratio to declining more highlighted quarter and prior growth adjusted we with gross excludes as a million XX%, significant reserve XX% to prior $X down of outstanding in to had the XXXX from with quarter.We quarter, of the year over cats improvement exceptional In our another Service year core about capabilities for PCS while percentage XX builder actions improved a management loss XX ago. entire credit repeatable underwriting net of the XXX playbook year-over-year, points driving fee-based ratio consolidated risk and a loss expect point business our ratio segment, growth.In percentage come.Our agency exposures, improved our XXXX profitable have was our significantly providing which controls points to taken and even begun loss to And Spinnaker our benefits in ratio. gross services success is We demonstrate business. risk in the improve agency improvement continues strong the in to

initiative, than to narrowed, million our agency announcing At out Xx, versus reduction appetite XXXX. intensified year.As the footprint premium million emphasis cost risk First of XX% have HHIP's are non-Hippo we up As significant agency we of control, our third-party prior successfully business and a rate our the $XX are keep expect and with our structure saw placed take business growth to Connect, focused quarter. underwriting at new expense retention we appointments the which XXX% builders more expense our in $XX carriers we on to in for

turning you.I'll many the savings, Israeli positive of growth Hippo turn and We Service and to earlier friends horrible condolences previously by over segment partners a past the our our with to weeks. we extend expect members call further these several coupled XXXX, Services I year-end ratio than improvements before projected.Finally, result Thank loss now as and over and Insurance in our positive EBITDA the impacted family in adjusted events Stewart. to

Stewart Ellis

Thanks, Rick.

stronger best yet in by even be XXXX positive These savings, be periods. we which in to public profitable adjusted significant earlier a million, XX% our in Service XXXX, up and and primarily year segment, TGP most predictable the premiums our operating basis, $XX Insurance business. to and most $XX both Services expect segments, positive affirming was which our the investments Insurance $XXX expectation minimum QX which in adjusted EBITDA Insurance a million, as is earned income driven closer was loss segment. turn Hippo will of operating million. in We a EBITDA least strong. coming of and growth On XX% expense of our prior cash as end was driven at $XXX growth the adjusted up to XXXX. organic growth our year-over-year already loss growth while as business, majority to Our significant million of improvements Services reporting profitable than of results remained over Revenue to ratio, now represent by in now consolidated the and Service Home by growth will Program company, a continued and driven improvements a expect our total our primarily

attractive segment adjusted view our revenue as growth driving increase income operating Additionally, our from of the will in million year taken an as million advantage from we Service as in in to an important ago Services income profitable segment. benefited has push in and to $X for more investment positive growth continue a quarter to $X yields.We have lever Insurance

in Hippo risk focus Our XXXX.We've in Home quarter. in and exposure our during Program great segment result narrower exposure on on Insurance the lower the appetite TGP loss and progress operating control lowering will to lower made and volatility expense disproportionately weather

in expense, $XX million and $XX driver, development consolidated the a a $XX million the from $XX Reduced year marketing were ago. expenses year expenses quarter, a ago. loss million ago, $XXX down were loss from Excluding were million versus costs adjustment while million and $XX million major year down sales and tax

including employees. to We also a our decision to take recently XXX reduction expense staff up actions, savings additional of announced

strong builder beginning and [ up ] XX% service expect $XX partially by investments with the housing actions continues million and TGP financial higher annualized with success We year.We these from in this year between drive of to to and Year-over-year ended QX growth ago. position $XX $XX of in to despite in million, additional higher the numbers cash savings a channel, our adjusted was to favorable million a from our loss driven segment, offset per and partially down XXXX, reaching strong changes with million in million remained down $XXX have million, QX another quarter million, on all-time of June million. in XX, the QX policies XX% the revenue EBITDA Services The pressures tremendous was the $XX premium as our operating market.Growth loss up $XX $XXX working $XXX was by policy. volumes on agency capital.In adjusted broader high quarter placed

as TGP marketplace see Our conditions. Year-over-year carriers, closer income of continued at total year, than independent million end operating in be retention from will than agency appointments growth quarter at a been expense we of despite XXXX, the Services we Xx our savings at from third-party earlier opportunities our in we turn rate income the XX% increase the a record very expect And and in premium in growth partners. agents TGP to saw adjusted revenue market to digital this we adding for of new growth the strong new more growth non-Hippo our with our Revenue agency in grew remains representing XXX% the segment, consistently triple the year First during ago the year Service a to steady further previously year-over-year and XX% projected.In up non-Hippo the XXXX. portfolio for positive quarter.At level Insurance By generated QX, operating many XXXX look million, quarter. to was half a attract year-over-year. challenging it was forward to hit We've of end premium granted, $X we market. and carriers XX,XXX $X over was Connect, segment second in ago.As XX%, of

$XX Insurance our all $XX for our higher exposure. as in million loss expense improved taken expand improved quarter and Program's XXXX X% its intentional IPO. in Underwriting Total that contributed. and segment in and actions XXXX to this underwriting in up underwriting performance XXXX continue and standards quarter pricing million, policy took Home reinsurance diligence, since our treaty high and prior underlying Hippo platform operating early generated due maintaining control while actions count offset and We reduction an expense of XXXX, premium best over the Spinnaker was year resulted discipline.The underwriting and we was rates continued in adjusted and terms pricing

actions our expect in recent TGP additional in XXXX. declines We to result

Home caused reduce to and treaty. our storm over premium versus aim our retention losses prior which million hail the XXXX revenue in the is have quarter to Program's of in reflecting exposure largely $XX a Hippo to Our materially was higher percentage year, disproportionate our reinsurance date.The XXXX of treaty our the XX% insurance up risk,

loss in income.HHIP's QX In addition, ratio was we and benefited XX%. from higher organic growth TGP gross investment

from the year of caps favorably. developing the Excluding And gross the quarter. was release a to large loss during quarter hail $XX.X The the associated year we've prior development, million losses core storms. XX% been XX% result, have versus net storms reserves in as ratio these chosen second with prior and PCS

adjusted with $XX pleased adjustment million $XX in significantly the months lower ago. the excluding in with the aggressive from drive even we're loss future expenses, While were progress, recent million volatility.HHIP's expense, actions in to down more year the we've loss taken a expect operating better we results and quarter,

expenses operating the year versus XX% these TGP, were As XX% of a percentage ago quarter. in

While our segment.I'd focused as our like expect pleased even with actions we this we going on more are recent now guidance portion to expense this update improvement of improvement, significant were forward XXXX. for a reduction

For and between $XXX million, our up of of of $XXX with from now $X.X the expect an EBITDA XXXX billion. our million $XXX TGP between adjusted full loss year, $XXX million. of we our million between $XXX compared estimate and revenue XXXX remains and range million. estimate million previous And expect now million $XXX We $XXX previous

today. to to fourth back I'd provide joining turn for we when results call to over like this us XXXX for questions. now more year.Thank the your guidance of for you operator expect quarter report We detailed the our the And

Operator

Kinar first with Our Yaron question from Instructions] today [Operator Jefferies. comes

Yaron Kinar

mundane. I and the a underwriting the also maybe to pause temporarily And of in condolences to step. decision and in the Rick, regards the extend the Hippo business friends First, think to to face few with Israel August. family new I with called it want Israel the of in people last I start maybe weeks. more you homeowners bold to to employees, want horrors my

to in regions or I could what lines. certainly decided of or call pull drastic. Can opposed that more walk also as out through it such drastic your take past to And maybe let's you and we've certain as see going relationships say, And think other retrench seen from, the bold than one maybe potentially insurers they decision measures? you less when forward? agents do a to pronounced maybe impacting what with extent partners to the action

Richard McCathron

condolences Yaron, those question, for all Yes. the Thanks, you and for impacted. the thank to

take all, we of reason is as the is achievement so. the path think a and profitability as to of decision doing objective our first we quickly think, need accelerate guarantee of to do to bold possible the it's I measures the

partners understanding and wanted appropriate problematic deductibles, that and costs the the then our get to right situations We So make had reopening. we we associated rate and with sure we all adequacy. before distribution either appropriate had conditions, the terms increasing started of

what already reopening the have begun So channel. done is builder we have we

in terms our -- do are simultaneously distribution are various states way then And opened we've changed So we increased increased also most in rates, not as it they of the that we in. provided of we do partners. to states states, opening increased the those paying take conditions, have We've that up effect up business the that create deductibles, portfolio. those volatility changed

a every recognize In that we've problem distribution going that only have partners, that that to impact PMLs stability excited consistency is made provided as these was there thus action make and industry we have versus can the to together the healthy a stability, that they fact, work wish doing premium. profitable by our on a time, distribution and And partners have early is and over but that to and market some and on have all we conversations some we're is Certainly, be them Hippo measured the have is disproportionate we not environment with sure what the forward. that we're this suffering we consistency far. progress

Yaron Kinar

any until take long have fully back you're will sense it you in business? do And how

Richard McCathron

and come gradually think I But areas see the actions half different reduced be more back will back Yes, just effect. do have these clear, second us to opening deductibles again, rate we you're want to I by take volatility. do we more going will of I But adequacy, only think XXXX. open right that the and will we gradually, in that and we very as come

while We that non-HHIP my XX% of thing in is divisions the the of HHIP to and mind, improving very, in those continue One other program. Hippo's from the very in coming lean we're I expect opening of and have to of program. companies aspects coming lots well, them growth keep our or are And those the doing terms from business. mentioned TGP to remarks, volatility as we on conditions

Yaron Kinar

good next part that the TGP. very business? profitable half point one And segments Spinnaker, it ask of segue a to that the hand, as of obviously, has. on question. latter the view actually, of a as you it's company it is significant is do core a out, you segment to And because response your With the the And X to I contributor regards my

industry maybe the sale. business hand, other the sell we're seen certainly headlines we've looking about On other we to have assets some and talking seen fronting for

So would love to hear your thoughts about Spinnaker in particular.

Richard McCathron

aspects really answer a interesting you the how And question. to Yes, it's good bring up question. going X that I'm of

job all, First the is Spinnaker. asset of that an with let exceptional by thrilled we saying the have It we me with to doing are company. begin

do EBITDA. reliance significantly Spinnaker we any we them it was business on and to of So to in positively to both carrier it a have core and risk the have a Spinnaker TGP carrier the control it and say control with capacity, do balance it true. hypothesis stands derisks to think the our the to MGA when you have out, of have you customers and ago correctly losses had I does home? that to don't do allows their And and that necessarily our and you reduce of several This of is party. when That to us the that. mission helping you before Having we years you customers, derisks course, said, risk. would sheet reduce pointed contribute no, can ask, as partnering help bought third as you continue an that

the business. business. doing marketplace, We very I been said, the comment like I've I won't -- rumors the that but how think business think view but on well. clear So We we is very as on within we

Operator

Our next question McJoynt comes from Tommy KBW. with

Thomas Mcjoynt-Griffith

other of forward? HHIP announcement is sort of walk that expense kind through pulling How how of the turn first of an is the timing just much when kind time expectations better forward around you reductions just on The and the you is for decision the components side, one had, profitable. underwriting any EBITDA the of the staff components. that side Can what guys about much within the of line brings you'll

Stewart Ellis

for is Thanks this Tommy, the Hi, Stewart. questions.

the about had hit exception with a of I'll be a I in significant prior number some answers second, a theme on drivers. the which think is the of -- in that expense to the quarter. of the reduction, we've And a most you've conversations going the this talk a recurring lot of are from

improvement, ratio probably the biggest segment's driver Home which of So Program's the loss the is Hippo profitability. Insurance

exposure less allows the on less and filings as that the rate and that a bulk rest kind we've loss in it us the in very many like talked because wind as way are earlier that pleased reducing PCS in more progress expensive of for in large mentioned, course and non-PCS over to last our I And to accounting action history meaningful volatility we've other to the in have actions improvement of from these portfolio. to in we've the up We're and Rick the reducing very of in substantial think have volatility in about the XXXX quarter year-over-year company, going we're the see that reduce made really also, previous to our losses into been XXXX areas, us year aggressive this continuing taking to show rely of XXXX. there, with rate impacted ratio. By hail. events and we of the the reinsurance taken start this year quarters, exposure core the

net underwriting higher So us while profit deliver the going also improvement ratio reducing the allows forward. a to loss volatility

more further. we confidence expect we've So on progress made will our that.And we data, continue I that get as great to think increase

expense savings significant. the Beyond are that,

possible on in we're to going past. is benefiting million our from volumes save of the $XX for the many to which now forward. more our sorry, structure basis, with to estimating a be them progress terms going that part other away there. we're to features we of tools teams platform, and in very $XX cost build But team annualized It's third-party doing program lot of employee the investments for able in business filings it's pleased an because now, save lower in we've term in combination million as also to built.We own million things opposed the of we're that changes into reductions, engineering right relative is the building million. to our a short teams on rate in core our to as business. the of business and that make is $XX the a possible efforts made need business made business. slightly teams somewhere And as development A we are -- the now that have It great $XX to we think our writing Poland. job. the between of shift We of we've HHIP significant expect that pre-action that in They're our from dollars to are and So

costs underwriting. data things information thinking we're cost other the about I for vendor expect, facilities that and expense and doing and the think using we're also that might you of

we feel a it's that are turn the that of confident very help and profitability, broad-based actions path and are making designed we to So here. to program that excited speed

so And --

Thomas Mcjoynt-Griffith

remains be Thinking next it on Hippo can scenario the previous you question. Home a Program franchise that time, for pause My and becomes value? a as decline and the as smaller for second time of growth shrinks that where takes Insurance this business envision to the following obviously, a in envision? extended just and the to Insurance somewhat Can upon you generally reopened. that piece ongoing Services scenario question Is for Service the a while about period the side. At year, same the the an expectations that is

Stewart Ellis

differently, would Tommy. I it slightly frame think I

or to say high without are so what losing would levels open volatility. business can money think earlier, new writing mentioned I without we think we as I of is, Rick where we do

out. adequacy of rate rate going volatility and needs over the is that that and have in So don't it adding as we more we to way And need making alone that think of more system. deductibles to as overall time to of terms condition not their are the we're put filings changes, place to and something changes. the the these I the into portfolio. thing, Again, rolled That's get sort raising be work of have easier

So our see likely more shrinking what a of we while Insurance in Home underwriting and is appetite appetite. we're Program and kind the temporary risk Hippo slowdown reassess our I think to

making and While protect being And assist services third-party the attractive grow our to more pieces helping other or the their changed. of that through of we objective business customers has not our in themselves by home our think carriers our we're carrier can market. continue that a homes the to them agency either quickly, offering care we in differentiated

Operator

Scott question Goldman Sachs. comes Alex next with Our from

Alex Scott

per us also revenue you less overall trajectory is, will premiums in First model. Services I have that to Is could question through growth what but that dollar through slow? do to I'm looks like? overall of what help think you through in less and segment agency cause the And the significantly going thinking help that think to of risk if just revenue can us revenue. this

Stewart Ellis

follow-up the Yes. happy try Hippo in you Happy dollar Home to And don't of to revenue Program questions, have see true think you'll start. per if that I it's I'm to premium segment. Insurance clarify. then less

in that think, fact, I the and numbers. you're is in true, seeing the up opposite show

we that more talked off XXXX, are we're quota necessarily reinsurance. think In we and more dramatically reinsurance. some some quota And and using we're about past share for risk. we premium. not retained ceded commission how -- income less recognize premium, retaining use off ceded the premium, we've while we've I we in retaining There's a when we've quarters share premium

way risk percentage we moving kind a we our the I of retention. talked from gap think of the treaty, XXXX reinsurance. the retaining earlier where retention between reinsurance were that in And slide of risk of disproportionate the away treaty a about because structured. the premium showed And our we're was year, and reinsurance closing we that

is dollar see you of in lower higher you'll this per premium see you actually can in should per up of the quarter only Hippo have with total higher of because per gross revenue XX% And we'll Home what so premium earned rather that dollar premium, than and generating premium And see premium. Program revenue Insurance dollar up X%. revenue

I continued see in think see Home see So an in we in -- Services segment. economics erosion not We'll growth will the Insurance as Insurance growth to continued I will we're a Service. going we And think Hippo of don't Program.

it's think going to opposite, we're years going all show few to -- the see, we've to is to over been and start the I start going we're in to to reported doing work about. going of something quite financials, itself which is we're the in fact, excited the -- past that

Alex Scott

just to those writing -- business one when it have revenue relationship Insurance you're But just just broker, Home lot was not going would writing my that you're of dollars you're Hippo of than to it assume the risk. Home rather agency taking because lesser You're it the would be a Services segment when for question right? writing sending through I Insurance, case Hippo guess you premium you're also I the an than through piece as

at. And that to is more So -- that mix to significant, going what think is that I is do get to about trying be I revenue as guess, was need that headwind, shift? we a just

Stewart Ellis

and of actually that much piece our business more a than Yes, so. segment variable I I the think associated a adjustment Services with loss profitable I is in the risk-taking mean, revenue loss no benefit business. there It's on is basis of it. the think don't expense

I and And revenue the the that Insurance believe Services home insurance growing than faster Hippo so Home is the premium.

the as see headwind. our think risk don't a in of risk-taking I business. we it not Program Insurance as and Services about think piece think as risk as about about of Service Home the exposed the having sort a lower Hippo those as mean We we distinct And Insurance And any what aspects we of the I pieces. Services So exposure. fact, do. the

the a understand on risk also both and So grow rapidly Insurance work time of a mix while homeowners see will are our and within margin predictable business make Service, contribution more it balance, Services the shift kind over appetite which variable we business. I of and think as as higher continuing to towards refactor to we

Richard McCathron

Yes, Alex, And said do what answering Stewart down Yaron's question. of to my I want Rick. comments it's sort question in double on Tommy's and and

economics. might when premium, you of would agency those have doubling pause. business agency sort that So look deteriorate not any you're on the that to do a we our at look fact as profit the underwriting HHIP business. pause fact at ensure that longer-term we make the way and we a that that write our long-term want in premium the profitable get as to sure Therefore, that, by We contribution that outweighs dollars any we volatility is the

want direct but your right establishing through that I premium partners. question, period rights reduce if shrink So to volatility slowdown correct, of might or a think looking prolonged to in and both business, we a yet portfolio intentionally this we merely to resetting have the is a were other be

Alex Scott

I trying of one Are in. were If I guys more to care I and know you could any to seeing an app rolling the of the to on some to sort mean altogether. do that business? impact separate there going the that pause business insurance from I how users that? products sneak of impact think you Is get sort of the sort out of of aspect business? home of this going sort are those

Richard McCathron

question. That's really a Yes, Alex. good

universe agency ability home particular HHIP customers to are from that or base. offer anything, if services enough, over whether interestingly care think they potential I increases of our revenue customers, customer customers the

to not. homeowner sort it increase our or States, disproportionately to much the in an whether actually ability the And to it care over a would so and agency HHIP homeowner monetize the app insurance is increases United home available as segment. they're customer And how now in situation throughout Hippo that any time, of increases

more opportunity HHIP-only getting traction when So it's an a an only it to agency frankly, opposite, value we we than if created customers. as we're for actually the customer bundle

Alex Scott

we of gauge, that? in some talk KPIs trying should the about that rolling do just business to measure Any that success we how of like about? when and I'm out not, what you think that

Richard McCathron

of -- our to better you guidance, Yes. We in to XXXX a what expect explaining on there. think job see we'll we do I

have share with let but we has We we're user guidance back increasing, users and have more us to you said previously monthly that active app XXX,XXX gosh, that when get in around number QX. close to installed our prepared -- we're been

Operator

question Karol with Chmiel comes from JMP. Next Citizens

Karol Chmiel

trying I I some you services. particularly that Is there that the growth kind use in there business? can to terms mean, more new anything the grow growing leverage insurance more? was of you of on think just is to color can get of prospects,

Richard McCathron

It's really Yes. good question. a

that X others and [ opportunities I a exposure of we full the have in positively fairly Service space had segment. have a that other there And no and to West situation. with opportunities situation, is MGAs in the are there that us think West are X One we did no funnel that thing partners very shortage and of fronting Insurance in to significant as area. are the benefits this ] exposure

others actually are particular some up area. So given to that face that have needing that picking the capacity write-offs are had programs we in

So from to of shortage no grow. for that to continue is there, a opportunities growth there perspective

Stewart Ellis

our growth some programs existing growth. fairly seeing growth, of also from seeing as we're think also well. We're I substantial

to So support programs and multiple Rick levers, that growing We we have And a there programs the year-over-year. said, able we're partner are are that a right? business, excited on of fronting as existing be number to are them. for looking really have

Karol Chmiel

kind curious And last it just came because question. up of one I'm recently. just then

terms Home of thinking Program, you terms roof on conditions of there Insurance replacement cost replacement creative is terms of of roof to for are and the -- the the conditions, and actual In Hippo instead any cost changes the the replacement? example,

Richard McCathron

implemented is fact, this volatility in already. And This generally. project part reduce of to Yes. we've those

increase make hardened versus sense to providers or significant the increasing all down value one partnership with costs a that doing So way avenues when the a costs. conditions, for it's deductibles a other risk at might to the Is terms exposures, whether ] that partnerships with through parametric changing looking we're things and actual or stabilize a materials, CES with replacement on expect them bucket. partnerships [ other cash the that replacement We're also because on deductible there puts it's whether roof different roofers, customer. deductibles, burden buy the you would

cash can So needs there because, that of we're industry been of think disproportionate of we actual mentioned, we shrinking. carriers and carriers, CES frankly, on It's increasing. placed the be problem. exposure has a X, is is not through of over an things Much or the structural that that the exclusions do on to and form you The looking as year value. deductibles settling primary things a the the burden mostly primary last burden lot cosmetic and this increased

So we're looking to part at different the all volatility a book. lot reduction things of ensure in as this effort of of renewed

Operator

Yaron [Operator Instructions] follow-up next Our Jefferies. question a with is Kinar from

Yaron Kinar

in one-offs PYD anything you HHIP, ratio could ] hope. Any the to there? a underlying I this last quarters. out? quarter to seem tick the ones, One, so And Two call and [ CAS bit relative loss X excluding up quick

Stewart Ellis

Hi, Stewart. Yaron, it's

is I claims. think kind interior seasonality of water there some of

think fires also total a loss number I small non-wildfire very had in of quarter. the we

nothing significant important, year-over-year. where there do this. our make would look to back we seasonality while it's is And spend most a But point trend. I would So to year-over-year, of we that time. some really Like improvement quarter-over-quarter but the is

Yaron Kinar

to PYD you And offer catastrophe ratio? net the loss the impacts the then can and

Stewart Ellis

we think thought understood I published that Yes, question. letter. I the I shareholder your in

Yaron Kinar

Apologize, I that. missed

back go and fine. at it. I'll look That's Okay.

one then. one so last And maybe

reduction impacted? significantly there are lines be you the OpEx With more think particular program, that would expense

Stewart Ellis

Yes.

all more because think the have across do -- employees the we The as the lines, and vendor of exist in in board. we're lines all it's that well. the I savings expecting

acceleration be of one going to P&L, substantially not trend. any in very leverage premium a of it's in as that revenue, expenses seeing of as So is but an operating a actions even that an the operating percentage this and of the our have trends business. already be percentage declined just And place we're very, by acceleration going to driven the these before

Richard McCathron

We've of operation and growth SwingDev, want been ago, as years we that growing Poland. One actively which reductions, about operation Yaron, increased of talk the and X in development we costs thing payroll late. add, payroll house do a I that to when purchased is have Yes.

the not the years. although of of it -- been And quality work there's you coming lower we've over fewer get, not so should people down, that payroll incredibly does couple cost we It's a well. is last assume naturally impressed naturally long term. The over environment as

while profitable the headline despite so still we goals fairly large have of that reduction, believe achieve we payroll quicker. for can number think company the that getting And much we that we the

Stewart Ellis

think may of that the let know I in you to net a me PCS breakdown we We have gross it -- releases on but think letter put earlier. that. I the a the on I back and prior I Yaron, misspoke we basis. year don't on published get basis, reserve impact

Operator

Thank your for you all questions.

questions at time. no waiting We have this

further will pass back I remarks. to the the So team any conference management for

Richard McCathron

everyone. the joining Great. evening. been We're we've excited you, of talking you we're be period progress to Thank Operator. to and making short excited in Thank next for much. with very that Well, you, this time, you thank a Thank quarter. you very

Operator

today's conclude participation. call. you will Thank conference your for all That

now lines. may disconnect You your

Hippo (HIPO) 2 Nov 232023 Q3 Earnings call transcript