Home insurance firm Hippo has posted their results for the full-year 2023, which includes total generated premium (TGP) climbing from $811 million to $1.1 billion, representing a 40% increase from 2022.
During the year, the company grew revenue significantly faster than TGP, increasing from $120 million to $210 million, representing a substantial increase of 75%.
According to Hippo, this major climb was due to increases in the scale of the firm’s Services and Insurance-as-a-Service (IaaS) segments, combined with structural changes to their program-specific reinsurance structure at Hippo Home Insurance Program (HHIP).
Hippo explained that it expects 2024 revenue to continue to grow at an accelerated rate relative to TGP, rising more than 60%, from $210 million in 2023 to more than $340 million in 2024.
Meanwhile, Hippo generated a net loss of $273.1 million in FY23, compared to a loss of $333.4 million in 2022.
Moving towards the fourth quarter of 2023, Hippo posted $268 million in TGP, with IaaS and HHIP contributing $116.4 million and $71.1 million, respectively.
Total revenue for Q4 sat at $64.5 million, compared to $35.8 million from the prior year quarter.
In addition, Hippo also posted a $42.3 million net loss in Q4, compared to a $63.1 million net loss from the prior year period.
Hippo President and CEO Rick McCathron, commented: “2023 was a transformational year for Hippo, highlighted by the expanded launch of our consumer agency, the continued growth and success of our Insurance-as-a-Service business, and decisive actions taken to reduce volatility in our Hippo Home Insurance Program.
“We enter 2024 poised to go on offense, with streamlined operations ready to serve our core customer segments in our core markets, and with renewed confidence we will generate positive adjusted EBITDA in Q4.”
