Home insurer Hippo has announced total generated premium (TGP) growth of 38% YoY to $303.7 million in the third-quarter of 2023, compared to $219.9 million a year ago.
At the same time, net earned premium for the quarter was $32.9 million, a shift from $10.7 million from the prior year’s quarter.
In addition, revenues for Q3’23 were $57.7 million, a 88% rise from $30.7 million from Q3’22.
Alongside the rise in premiums and revenue for the quarter, Hippo has reported a smaller net loss of $53.1 million, compared with a net loss of $129.2 million from the prior year quarter.
At the same time, Hippo’s Q3 adjusted EBITDA loss was $38.4 million compared to a loss of $54.8 million in the prior year quarter.
Hippo also reported a gross loss ratio of 59%, compared to 110% a year earlier, however the net loss ratio was 111% compared to 223% a year earlier.
“Q3’23 was Hippo’s best quarter yet,” the insurer noted. “For the full year 2023, we now expect an adjusted EBITDA loss of $207-$212 million, compared to our previous range of $208-$218 million.”
“2023 revenue of $190-$195 million compared to our previous estimate of $178 million. Our 2023 TGP estimate remains $1.1 billion.”
Reinsurance recoverable on paid and unpaid losses and Loss Adjustment Expense (LAE) was $297.3 million as of September 30, 2023, compared with $286.3 million as of December 31, 2022.
“…we are announcing a significant expense reduction initiative which we expect to take $50-$70 million out of our cost structure in 2024. We expect these savings, coupled with further loss ratio improvement and growth in our IaaS and Services segments, to result in positive adjusted EBITDA before year-end 2024, turning positive earlier than we previously projected.”
