Hippo Reports Third Quarter 2022 Financial Results

“The advantages of Hippo’s business model and an industry-leading tech stack are coming into focus,” said Hippo President and CEO Rick McCathron. “We’ve continued to take market share and improve our underwriting results despite challenging macro-economic conditions and what the industry expects to be one of the worst hurricane losses in history. We remain confident in our guidance as we enter the fourth quarter and continue to progress on our path to profitability.”

Third Quarter Highlights

Improving Adjusted EBITDA

• Adj. EBITDA loss of $54.8m (GAAP net loss of $129.2m), better than our guidance despite Hurricane Ian
• Projecting narrower loss in Q4 ‘22 and 2023 improvement

No Slow Down Here

• Total Gross Premium (TGP) up 36%
• Agency, Builder and Spinnaker Fronting all contribute
• Customer count reaches 332,000
• No change in guidance: 30% TGP growth for the year

Revenue Growth

• Revenue up 44%
• Commission income driven by Spinnaker Fronting
• Agency business growing with Gross Placed Premiums at 21% of TGP
• No change in 2022 revenue guidance

A Superior Underwriting Model

• Gross Loss Ratio (GLR) of 58%, excluding Hurricane Ian (110% overall)
• We believe significant improvement in 2022 is evidence that we are building a superior underwriting model
• No change in 2022 guidance of 90% or better GLR, including Hurricane Ian

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