Home insurer Hippo has announced total generated premium (TGP) growth of 25% YoY to $154 million in Q122, compared to $123 million from the prior years quarter.
The quarter also included a rise in gross written premium (GWP) to $117 million, a 17.9% difference to last years $99 million.
At the same time, net earned premium for the quarter was $9 million, a shift from $8.8 million from the prior year’s quarter.
In addition, revenues for Q122 were $24 million, a 44% rise from $17 million from Q121.
Alongside the rise in premiums and revenue for the quarter, Hippo has reported a smaller net loss of $67.6 million, compared with a net loss of $195.2 million from the prior year quarter.
Hippo also reported a gross loss ratio of 76%, the best that the home insurer has reported since it became a public company.
Given the seasonality of weather exposure, straight line sequential improvement is unlikely to continue but Hippo noted that they do expect continued YoY improvement.
The company also added that it has made structural improvements to its underwriting and pricing models and that these changes are beginning to have an impact, as the company stated that it believes to be on track to achieve to its full year guidance of a gross loss ratio of below 100%, a major improvement versus 2021’s 138%.
Following the strong performance in Q1, Hippo added, that it is on track for full year guidance of $800-$820 million TGP.
“We’re excited by the progress reported today, achieving significant growth while delivering our best quarterly gross loss ratio since our public listing,” said Hippo co-founder and CEO Assaf Wand. “We believe by focusing on geographic expansion, attracting more homeowners who embrace proactive home protection through our omni-channel strategy, and continuously refining our risk models, we will deliver better outcomes for our customers and fuel Hippo’s success.”
