HIPO - Earnings call 4 2023 | Hippo Holdings Inc.

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Operator

Hello, everyone, and welcome to the Hippo Holdings Fourth Quarter 2023 Earnings Call. My name is Charlie, and I'll be coordinating the call today.

You'll have the opportunity to ask questions at the end of the presentation. [Operator Instructions]. I'll now hand over to our host, Mark Olson, Director of Corporate Communications, to begin. ahead. go please Mark,

Mark Olson

results, Good Chief Quarter thank Hippo Earnings announcing Chief be Stewart full shareholder operator. Leading Officer, at Hippo's discussion Financial Officer, today's issued for Rick XXXX letter will year and QX Fourth Call. President its is morning, you, available you investors.hippo.com. and and Hippo joining a which Executive Thank Ellis. Earlier and today, McCathron;

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

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

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

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

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

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

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

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

Richard McCathron

an X focus. beginning our premium lessons opportunity always of have forward and to and doubled we more the and to reflect revenue to years, ratio gross Home while new expenses $XXX moving everyone. past, presents than lowering In internalize and its from on short doubled approximately year from generated on enthusiasm before billion, the morning, The total nearly improving Insurance Good fixed renewed $XX All million. our XX loss million our by $XXX with Program points. percentage HIPPO million $X.X

the as policies Insurance us, Over Hippo the year, well. ability that carriers just past from our want from buy policies third-party we of kinds other Home learned not customers to but

consumer But a best believe We policy the option heart this the for home, refocused a have policy the generation option. customer, newly homeowners the better those buying be will a to and better are who from built each another customers, especially a XX-plus our that with will our target taken customer is carrier. partners. of to carrier, find regardless best We best agency for carrier our across on we customer fit finding Hippo if work

carrier services for there on the much the in real focused of market happening. innovation is We need market in also MGAs, that learned servicing a the is where insurance

XXXX, Our processes us an competitors underwriting many robust the allowed industry-leading to over experienced Spinnaker, has while have our rate grow platform the by business Insurance-as-a-Service that accelerating year. an at of in and pitfalls avoiding past

operating And to portion Insurance of for the its this Hippo predictability both profitable while expanding our that and have our there of risks also and in to Home we a Program. we this which to some customers. learned as excited margin are especially we seek some are geographies prefer Spinnaker exposure profitability MGA finally, less our win-win improve business. Truly, already achieved and We growth

last we policy second that almost the renewal illustrates be And launched paying year and to kinds quarter program we how cat areas the and XX% experiment a coming were XX%. in of reduce way began of losses direct approximately higher XXXX, earnings The dates. quarter last work the same progress, began areas, non-renewals we in reoccur. year Hippo's of direct These currently excess the decisions wind Moreover, these by full benefits their because is XXXX. even to greater. from to changes hail hailstorms second the As experienced severity, certain reduction take reduce losses if us in deductibles with had A the would the combined XXXX for to of goals in October raise discussed half our this fixed in the experienced we concentrated give in an achieve changes took through when initiatives, exact the quick we with These to quarter would cat off.If businesses of to with greater hailstorms that lower with of operations track half on we that shifting to our a policies predictability. and losses that volatility and concentration. our in geographies, higher exposure confidence is intended second actions in aggressive are expenses, non-renewing schedule, of and reduce profitability of level towards ahead are XXXX, thought call, where streamline are second XXXX in deductible mix the same selective the the those in actions program

are to core It's As well-positioned we core enter to segments. our for XXXX, customer we back markets on Hippo business our for and compete offense. believe time go in incredibly we

like walk financial for expectations XXXX highlights I'd Chief full QX well the our Stewart turn Now, and year as as call to future. our the results, over our the to of to Financial Officer, through Ellis,

Stewart Ellis

We clearer visibility and we profitability. business our XXXX into operations, doubled far significant with morning, simplified transformed both the exit when We achieve a the by as remarkable how year of predictable meeting competitive needs structure. increasingly everyone. and year down our efforts, reinsurance and Hippo. segments we advantage, Thanks, for these and our was a will on Rick, focused a market streamlined good have of where on the customers,

XXXX, than we was $XXX the our The important business $X.X of than of underlying During to homeowners underwriting itself XX%. reduced our exposed how are million from it. weather an More TGP at grew rate, accelerating we program. to volatility to parts while achieved in growth our and that billion, we increase more significantly primary grew less an weather exposure insurance

in and of XXXX quarter QX, most predictable XX% ago. of and and fourth from Insurance-as-a-Service of services XX% the represented a profitable During TGP, the our business, components our XX% up year collectively

XXXX TGP and $X.X final TGP We trends these collectively in XX% during expect to growing billion, of segments year. total the than the of coming the representing year, the with services quarter by more to Insurance-as-a-Service continue with

retain XXXX, increase changes risk During in significantly to growth profitability. retaining, of faster than This XXXX, TGP, Insurance-as-a-Service result By $XXX about fully Services XX%. an of the we we both between the only of key a gap was and our that grew to narrowing more of bringing for thereby from and XXXX of moving paid our which line growth risk, more retention, in million retention premium revenue in the increases of $XXX in the scale million of segments XXXX, but structure and XXXX, we risk homeowners past of the to significantly program-specific our risk. more the driver associated we HHIP. combined able XX% reinsurance able with retained we but structural were we retained. a are risk are reinsurance risk effectively, approximately premium, our from XX% only structure revenue getting with premium at away XX% made we policies the to with and is insurance In XX% In the monetize premium the

We than XXXX. expect to continue $XXX to $XXX million in year XXXX from to rate XX% more more grow at relative Rising an than past to TGP. this million revenue accelerated

measured reduction in the we our our while the volatility expect by achieve track Rick underlying transition that lowering be reduction discussed major reinsurance to underlying this able nearly catastrophic exposure weather with the structure. consistent and the excess historical exposure. to purchasing risk transitioning to earlier, to record reinsurance will to expected retention, traditional also This gap attritional earned we loss Retaining a the improvement, between Importantly, underlying felt exposure to in protect Because and and gross our against or of loss losses and premium volatility attritional our that will historical with combined XOL an weather us almost XX% align XOL ratio events. and of our risk net severe driven better expect we weather XOL comfortable net narrow has of loss the achieve more all weather to ratio. to further reinsurance as allow to

Turning ratio. now to loss

the masked quarter. With and our hail our The ratio Our higher expenses expectations in loss XXXX losses course the loss during significant loss and of the losses because XXXX, XXXX. significantly in were continued and loss wind XX% second that than XX% in during of over time versus outsized to improving weather percentage improvement points XX ratio non-PCS in non-PCS the XXXX, year. adjustment

QX to actions we well we our in percentage XXXX a the expected As than non-renewals XXXX. more loss geographies to use improvement non-PCS Rick actions with rate earn HHIP and policy under gross expected QX be and to XXXX, happen in losses our that of the XXXX the XX% due increase over year higher between mentioned in of business XX% expect generally. lower we ratio exposure previous was experienced mean underwriting PCS to structurally expect our and be X realize and volatility improvement as and of ratio actions net the in down to XXXX, which weather XX%, we taken rate trend during more cat losses we gross taken loss geographies with aggressive cat additional past the deductibles In XXXX HHIP the in excess expected hail and to over from ratio deductibles. in expect significantly into and as effective In Similarly, XXXX, better cat-related points wrote due load written we XX%. more net effects year XX%, wind the ratio gradually and than and the to XXXX, In benefit loss XX%. loss between reinsurance. ratio to to net far loss exposure from in The gross ratio XXX raise with to an responded ratio of as the actions to QX selective in to reduced the reduce events earlier, loss rate financials, resulted years, exposed QX, loss underwriting combined expect we cat-exposed XX%

We we to loss expect for be ratio less year. expect improvements net than full XXXX XX% additional the in when

XXXX impressive falling reflected disciplined conjunction when top The numbers. result to operations. $XXX measures And XXXX revenue. our we our is XXXX. a of to efficiency viewed in fixed more growth benefits top our only in improvement XXXX, a decline from expenses our into in the line cost and even percentage complemented are XXXX revenue in has only with late from During sustained efficiency in million XXX% a with robust $XXX to of been This of more drive encouraging, expenses effort small XXXX fixed million growth, with these our line reduction XX% of year-over-year

we in expect and XX% than continue expenses of revenue. XXXX, fixed For to to than terms, absolute more by to expected XX% XXXX less dollar decline

EBITDA to finished shifts an of million of underwriting XXXX, the when XXXX across leave mentioned of reinsurance, delivering a reflected gains in rate fourth improvements EBITDA than adjusted as at us improvements profitable than top financials. loss only with year. XX% down our And adjusted in and loss clear of mix quarter efficiency growth, previously, we effective QX sight made organization the businesses. more toward $XX have entered partially our During and QX of use we positive million, and EBITDA adjusted more many we with More HHIP, expected our $XX line line predictable in earlier of XXXX our We from are XXXX. continued

half only XXXX, more of expect we the from with this forward, loss an year. XX% the the full in than down EBITDA adjusted loss over XXXX, coming million to for of $XX Looking first of XX% year $XX million

turn to year, of to the the EBITDA We for fully adjusted the and half positive. quarter adjusted be EBITDA positive expect second during fourth

anticipated.I'd XXXX for with guidance We made entered significant that extent than We confidence updated previously progress our XXXX now to have along it like we will a path greater summarize achieve during our and XXXX. increased to sooner to profitability.

that to We more to driven the our than components are billion, business volatility. $X.X underwriting weather to expect grow TGP by exposed less of and

We expect to to $XXX more million. revenue grow than

quarter, losses. between We XX% areas PCS to of Because XX% XX% XX% quarter. expect we to gross the be to of and the to for and weather to ratio be where XX% the XX% our quarter, third and HHIP policies XX%, are related to load the cat loss to the between non-PCS in fourth quarter, second allocated first and XXXX distributed, losses, XX% related our cat with the expect to seasonality XX%

HHIP HHIP XX%. XXXX to with We be net net loss between expect QX ratio ratio and XX%, under XX% loss

adjusted than first be an EBITDA $XX full XX% in of coming positive of X million quarters, adjusted EBITDA for losses with more and year, and expect QX. We the $XX between to million loss the in the

As have income on retain. from a used are the that definition the we of reminder, premium EBITDA and that float historically interest adjusted excludes we using

happy EBITDA take at up we turn $XXX significantly Finally, investment time positive And our we'd to meet guidance. be we million, expect from minimum questions. previous adjusted your to than cash Operator? more the and now,

Operator

Instructions]. [Operator you. Thank

from open. comes question ahead. first go KBW. of line McJoynt Tommy, Please your is Tommy Our

Thomas Mcjoynt-Griffith

for questions. morning, good guys. Hey, Thanks taking our

competitive stand Just rate largest there the remind seeing a you insurers standpoint, you their competitively feel we're kind guys rate on Can the throughout -- as competing and through us increases? is the that where your have seems you increases still accelerating out you from of be adequacy lot just the just to geographies? then homeowners increases. the accelerating a pushing And of how competition rate

Richard McCathron

the Thanks Tommy. different things. couple for question, Great. Yes. of A

live. know, did news actions all aggressive will far in XXXX. underwriting I renewal been years. As after additional we've out stance you and of date. gone their point in. last Most business them takes live business rate Good couple all effective a for taking have of of effect are of for and more going QX is, that But new filings rate our on the that We

early still ourselves benefit very So, positive we we're adequacy, are think, of to numbers, of have the getting because work the why rate these actual the in one portfolio P&L. which relatively reasons still to I exciting into lots is

rate. So, I do think taking others are

and was there's industry. to offense. our needed back about of I filed very with current that in as things We flight, already rate lot those get mentioned, a good think in rate I level feel on already the

like profitable So, shape in to we good business. feel competitively write we're

Thomas Mcjoynt-Griffith

you there a you through. in to the those the versus conditions, would have say pushed which Got seen high much deductibles it. contributions? how And actual you of come about has can Okay. the quantify of rate, the you improvement and that underwriting guys think from and have way that guys mix trends Is reasonable

Richard McCathron

Yes. It's an interesting question.

are forward-looking there sort factors that three So primary our impacts of statements.

high-CAT First is in areas. terms of condition changes, predominantly deductibles exposed in

selective we Second, And where of is on out overly business getting course, is are rates. that are third concentrated. the of non-renewals we

of that think to I and think that's the months. focus is of results. portfolio, don't in important things I last very, driving specifically X are these us of singular reduce company our the a very volatility any them positive all one the for over been

all are they think driving I results. positive collectively the

Stewart Ellis

are clarify. in affect are the we and our come and the at both in expectations When numbers, the The the driving look going going do going we're spread the the the non-renewals point, to that's the and and of thing is we sort one to the selective confidence where of high-CAT rates things predominantly in actuarially, be terms just -- spread future And -- to but where have change just one things conditions the those, out. think the to areas look think that we expectations Rick's in be expected we results of results of the going to are thing for Tommy, add changes the the we this expected the Stewart. and I'll is at to then results. around about

a all is So of three really factors. it combination

Thomas Mcjoynt-Griffith

I'll And here. Okay. March then one, we're last guess of kind sneak already just into in I Thanks. now.

you some would get decent and it around update activity a guys first maybe We've Texas, of some So, of an and be quarter the storm from around losses the great and have losses on to that. flooding in exposure potential terms there. seen headlines

share update you an can on first anything with the So, quarter?

Stewart Ellis

Thanks, Tommy. right. All

we'd it's to early At happy about XXXX, a QX I a results. to but be it's think QX for this think talk be premature point, QX. us I little little for sharing in

Richard McCathron

for The one and I all in our take weather current when we add year, is guidance current what's on with we've baked that this the would QX, thing available, information at Yes. we been that's give expectations point our in happening guidance.

Thomas Mcjoynt-Griffith

Thank Okay. you.

Operator

Thank Instructions]. you. [Operator

question is comes next Jefferies. Our Yaron of from line Kinar Yaron, your open.

Yaron Kinar

And with you. the morning, maybe could a on questions I couple start revenue Thank want we everybody. with to guide. start HHIP. Good if of

TGP, different at seems the to like You're think, Whereas, looking downwards significantly offense, but XX% revenue there down. midpoint there, I'm to of guide quite here. guidance look the up I talking XX%, I numbers about the in guess movement two is range. I the switching if One, at be to number,

the us change by can sort should offense revenues? the and flow of out expect maybe there? So you playing help to of driven how revenue things through is How see in TGP much we much reinsurance, change

Stewart Ellis

for you Stewart. Yaron, the question. is This thank

then happy I think start, I'm happy I'm let Rick to and add. to

right. you're think I

As me, in growth which it's drivers Insurance-as-a-Services trends the of segment the pieces extent to of our fastest-growing QX in and influences -- understand anyway, that our were primary we next in QX. important segment that TGP think Services TGP, XXXX and business our the to continue, year about that, excuse or the

going the were the business both HHIP because profitable improving those And standpoint, The about because of in is but from volatile and and of the side. a structure. because the And two in in the important loss for earlier, down, the Let come down. reinsurance as that's in least me what of That is has TGP QX business portfolio. has that ratio continuing the the again, to we're thing, down, doing us rate over. in growth revenue most of pieces in factors on that continue pieces of quarter attritional drivers has around of the Those start XXXX. primary also the fourth number as as XXXX there, two our we ratio business trend the of change come the improvements volatility talked come and we XXXX, expected sort loss are

comfortable more HHIP. within the increasingly attritional are risk the associated of premium We retaining with

we in program. policies And almost structure. means the And HHIP excess up more on the was which -- losses In share retaining. structure, still entirely in we're quota as under year share because getting a ended the and we're so, that to Xst, the reinsurance that that. we're retaining which XXXX, transitioned But XXXX, for key traditional that retained the we've retaining. a from some we're and that from than in of almost are It reinsurance risk loss paid said, premium, tree January we're partial to more moving line entirely structure from correcting risk happen I is that the a contributor of on we XXXX, we XXXX functionally the with premium net moving XXXX of far more retaining risk some from quota of won't are a away the

Richard McCathron

add historical have in Yes. two -- at is profitable. could in our would that's it creating a that current expanding look in Yaron, this portfolio I to and program portfolio, if HHIP or already and/or growth could our few categories. I Rick. new we portfolio portfolio The that. things the the If I add almost

I strong existing business volatility actions a portfolio. In competitive in where a we the and When to competitive continue we going reduce in our So, product book. advantage. and segments, have necessary offense, advantage, mentioned back a that's believe advantage. the these in we products areas, the have efforts geographies competitive distribution writing on the advantage competitive comfort for a take That's demographics, we in our to

down will components, an of all business on in doubling grow and in overtake that that going the time, fashion. with And reduction accelerated TGP. So, we're these to portfolio's historical over

advantage. we excited efforts ones with Hippo really these really we're distinct So, continue write profitably are can areas think the have that that that to we of a business we

Yaron Kinar

And Rick, to there. your Got it. comment last maybe

again to gross of segments we Mainly, and start the how back again? back the starts the point moving overtaking business, when the offense other up in the So, retrenchment written pivot about other TGP or geographies think premiums when up HHIP. parts should we kind or inflection should of seeing in maybe moving

Richard McCathron

a Yes, your a to question of things. of know I as was clarification, couple just point And and specific HHIP.

always -- we've never mentioned, business Stewart we agency our segment. in down as think, shut for I

parties, the we've continue sell of these they to policies advantages. the up where will accelerate the to homeowners opening in cross-sell as they third get existing areas already portfolio, and sell and from continue And continue opening begun products. portfolio. in we mentioned have we that those other that section, So, I success to around HHIP we comfort the

decrease, start then these in So, you're of going to for the I segments. in seeing premium start think down business new and seeing traditional increases that you'll slows its terms

Yaron Kinar

can offer you timeline is too early? it a or And that around

Richard McCathron

early way. when you Yes. I would the happening is start 'XX, say that's point, but 'XX all along late inflection really growth there's this seeing

Yaron Kinar

the a more Are we XOL, Got to gap gross is just ratio continued the loss and loss talk into that net the program that? quota changes should and see ratio to with it. thinking Can question how almost -- quarters reinsurance much around when guidance, and playing that about And your between the was we're see we'd would even of? I be that think have look XXXX. thought I loss there diminishing second eliminated. really at And going that then I still be I gap if my share could, in that you going out?

Stewart Ellis

Thanks, Yes. Yaron.

runs believe I off, there, be are think those and treaty don't meaningful as will there I significant. the small but effects XXXX

down be we that's for into at for point. do be XOL and again, to XX a as XXXX. I We of beyond, between gross gap shouldn't and little we're of I going running and pretty a net certainly bit it's that loss between net. a think this the But standard get reinsurance. quota But XXXX share think factor off have just kind premium the between that's gross driver the that major -- difference the the ratio seeding

Yaron Kinar

Thank you. Okay.

Operator

[Operator instructions]. you. Thank

of from comes Matt Matt, line your Our question is next Carletti JMP. open.

Matthew Carletti

conditions, have and maybe to we've of taken over Good the increased the talked structural It's other drivers highlighted to exact a that the of pretty confidence about pricing talk have of you in are come that's and kind And clear just changes got trying place. thanks. answer. guys But kind you bit about play obviously of You that better and in some EBITDA to that kind you loud Hey, more positivity. Can there I'm lot line to you store? kind of morning. increased kind understand factors expense terms path that the of the sight a the of that past get quarters that changed now. of what's few confidence?

Stewart Ellis

Good Matt. question. Thanks morning, for the Yes.

I which things, breaks the are of think direction. of down all in few into it categories moving right a

on written a that than more expect we're continue. rate fourth achieving I we basis, think the slightly and expected we to in quarter,

with structural that the expected than had of Both with reducing than your that made we progress also we the a quarter fourth we volatility around ratio in losses things, think mean better had lower anticipated previously. question, in previously. changes along loss XXXX expected expectation more in those I mentioned you

we I think our beyond maybe had And more just bit think I expected. better market expected. came placement. was than story than XXXX was the we little we reinsurance market And that, little well-received a think by the maybe our a through bit reinsurance I that

And reinsurance the finally, were and ago. we lot we improved or we then where think vendor-related people both two slightly compared a I quarter to economics QX. about structure have initiatives, talked and cost-saving in So, a

in expected. than previously able I more had to from quarter slightly fourth achieve think the we reduction were the benefit we initiatives cost

P&L of the year. those the course their see XXXX way our And so, you'll over into work progressively

So, and I right 'XX. really into in are increasingly moving move all direction, we the confident think the drivers feeling we're as

Matthew Carletti

Great. And the might advantage, it whatever Rick, Whether where you demographic, in follow-up, competitive if little technology, it's a an be. have bit I talked could. you right? environment and leaning then one geography, Okay. about

lot of think well. areas is not markets. we there In that the a business. other are your about pushing kind think to things to on is market you're more of cat grow still pockets of looking that we is as think is view And less lot rate, their market those looking that these new a and competition grow, the picture? Or of maybe exposed broadly, as heels, similar competitors others being I in a those of

competitive get is trying for of going the grow? Hippo feel spots Just where kind look in environment the to to a to

Richard McCathron

Yes. No, it's a really good question.

a we of actually, our the of of to ahead so, given think, to quicker. curve put the And allows them on couple market ahead we main of reason were and The changes our I actually One, from market. competitors in us were things. of most hardening curve changing, the the is get quicker technology

would aspect of we XX-month a one I competitors. That's of So, it. say had to X- advantage in terms timing to our

before, and competitive do channels. we aspect in talked this have example, comparative which The and is we've one advantages about it, of certain second

about as we've our channel builder So, talked example. an

significant number a a tech have partners. builder We a ingestion from or have requires street quoting doesn't advantage because property a even street that data of name

from builder product the partners. advantage. a advantage, a directly leads getting have distribution And have we are We those we because

policy home constructed specific have new homeowners We for a builds.

may X All of some areas. And niche, what think new homes is million built are year. those a there's every although being and million between X.X

and a on. if where one it's of building advantage have competitive we X that a So, doubling we're niche, years massive that's down

Matthew Carletti

Appreciate Thanks. it.

Richard McCathron

welcome. You're

Operator

Thank you.

from follow-up question Kinar of have We Jefferies. a Yaron

Yaron Kinar

'XX, from events did taken a by follow-up XX% same you've in reduce is on could. out dollar actions Thanks. losses occurred hail if and that hail I when basis? direct events the would as that One, say Actually, the two you they if questions, in 'XX

Stewart Ellis

basis. Yes, Yaron. a That's on dollar

same exact you the XX%. roll non-renewals the of in rises and renewal and you the the wind hail achieve storms, a then course year and dates. progressively to if with through their over deductibles, vaccine apply nearly relative XXXX, severity basically, and exact changes XX% geographies XXXX just it and selected So the We'll in our portfolio, reduction the same to

for reason of way difference way changes you the process to the work the rolling until start because changes If their out didn't those the of storms through fall all we happened, these The the book. allow the really is XXXX.

So, come the we up not our portfolio had renewal time will have a for by get chance of all hail policies season to this year. to

reduced still be 'XX we'll then some further of exposure, it reduced that So in even will and have dramatically in 'XX. but

Richard McCathron

Yaron, Yes. Rick. is this

Just really and one that previous with to of the add questions. to

think started reducing that really portfolio, the about work actually on the in started volatility If you when in work we we XXXX.

XXXX horrible first reduced and volatility a we from hail to in -- half XXXX so, a the just season. horrible was significantly And XXXX, XXXX

the So, from been that all of we actions had already hadn't benefited taken. we

we forward to XXXX, now XXXX in we have the So, actions all of already portfolio. the as look

We XXXX October that actions XXXX. be of a mentioned portfolio fully in the partially by in as of we of Stewart and QX, end they'll the result into portion have our a then that the started

we've stacking So, worth two a get confident of our in efforts got us projections. effect highly of to years' different

Yaron Kinar

even And pronounced, the right, because should loss be earned ratio more premiums continue impact grow. the to components

Stewart Ellis

-- be losses. with the of I premium attritional the right. Because think, yes, we'll or retaining associated more attritional that's the

Yaron Kinar

Okay. for then, I second. a guess, And revenue to going back

very I relative is to the of understand ramping reduction in Services So, growth still business for it's bit in a where young segment, in that you were the still you're XXXX. up. there And a guide a

the one of that on say a So is guess, more off base I larger could maybe have growing I and base challenging. hand, you

and mode. it's hand, young ramp-up in sold still other the On

we as at XX? same if we of better, should growth look saw why when in the 'XX, not we So level see

Stewart Ellis

segments be clear maybe think a because gives a one numbers the Yes. of eliminations but we question, going that some to opportunity an should clarify between in it us I it Yaron, and that's on the bit drivers may confusing. great have that's be everybody, to

the the had we've in that Services our one pause pullback HHIP. the for underwriting So, in segment of headwinds is at

So, our third-party service are policies, insurance also that business sells and it Hippo carrier policies. policies sells home

that. to And so, get the the growth growth in had will But of start beginning you'll grew into of year-over-year quarter most insurance quarter tailwind services reopen the of segments that in the paused fourth move we premium. the that of Hippo continue XXXX. the some business of in XX% we the as from business we year. a to primary fact the Hippo our fourth the TGP start the third-party in is be home When driver mentioned, despite Rick policies effect driver of primary the XXXX It then of to

we're was services the as the bright with at When understand seeing Program. a growth business look you actually that there associated that Home and Insurance Hippo I spot. there the headwind So, a

Yaron Kinar

for clarification. the Thanks sense. Makes

Stewart Ellis

Absolutely.

Operator

this over any At no closing for you. I'll CEO, have questions. stage, to remarks. Thank back hand we Rick, further currently

Richard McCathron

day. you thank look you attention. forward much for a quarter. to next chatting Have Well, Great. good your We very with

Operator

call. and today's this Ladies joining. you concludes Thank gentlemen, for

now may You your lines. disconnect

Hippo (HIPO) 6 Mar 242023 Q4 Earnings call transcript