Home insurance firm Hippo has announced its financial results for the third quarter of 2024 reporting revenue growth of 65% year over year (YoY), with premium retention more in-line with risk-retention.
For this quarter, the insurer reported $95 million in revenue growth, up from $58 million in Q3 2023. Total Generated Premium (TGP) was $368 million, up 21% Y-o-Y.
According to Hippo’s financial report, services and IaaS drove TGP growth, up 46% and 12% YoY, respectively in Q3.
The higher premium retention at HHIP also contributed to growth in the quarter. HHIP Q3 accident period loss ratio improved 22pp YoY to 70%; non-PCS loss ratio improved 15pp YoY to 52%, PCS loss ratio improved 7pp YoY to 18%.
HHIP Q3 accident period loss ratio improved 22pp YoY to 70%, while non-PCS loss ratio improved 15pp YoY to 52%, PCS loss ratio improved 7pp YoY to 18%.
Hippo also reported $8.5 million net loss, down 84% Y-o-Y. According to the firm, loss results in the quarter improved substantially year over year despite an active Hurricane season.
HHIP PCS accident period loss ratio came in at 18%, an improvement of 20pp QoQ and an
improvement of 7pp compared to last year’s Q3.
The firm noted that despite the significant improvement in its PCS results, “the real star of the show this quarter was the improvement in our HHIP non-PCS accident period loss ratio, which improved an unprecedented 15pp YoY to 52%.”
This improvement resulted from aggressive rate and underwriting actions across the portfolio and a favorable shift toward newer homes, which experience lower non-weather losses than older homes.
Despite shifting away from higher-CAT geographies, which would typically increase the non-PCS loss ratio, we achieved an improvement in the non-PCS loss ratio.
Rick McCathron, Hippo President and CEO, stated: “The positive momentum we’ve built over the past year continued in the third quarter as we took a significant step forward on our path to profitability.
“We strengthened our foundation for future growth by continuing to develop our Hippo New Homes Program and delivered our best-ever year-over-year improvement to our HHIP non-weather loss ratio–positioning us for a successful fourth quarter and sustained growth in 2025 and beyond.”
Hippo also announced that it sold a majority stake in First Connect Insurance Services to Centana Growth Partners, who will invest new capital into First Connect to fund its future growth.
Hippo also revealed that it sold a majority stake in First Connect Insurance Services to Centana Growth Partners. This strategic move will facilitate the infusion of additional capital into First Connect to fund future growth.
McCathron added: “Since we acquired First Connect in 2020, it has become the premier platform for connecting independent agents with third-party carriers.
“As Hippo focuses more and more on its core business, we felt this was the ideal time for First Connect to chart its own path. We are excited to remain a customer, partner, and minority shareholder as First Connect continues levelling the playing field for independent agents.”
