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Hippo (HIPO)

Cover

Cover12 Months Ended
Dec. 31, 2021
Document Information [Line Items]
Document TypePOS AM
Entity Registrant NameHIPPO HOLDINGS INC.
Entity Filer CategoryNon-accelerated Filer
Entity Small Businesstrue
Entity Emerging Growth Companytrue
Entity Ex Transition Periodfalse
Entity Central Index Key0001828105
Amendment Flagtrue
Amendment DescriptionOn August 24, 2021, we filed a registration statement on Form S-1 (File No. 333-259040) (the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”). The Registration Statement was declared effective by the SEC on September 1, 2021. This post-effective amendment is being filed to include information from our Annual Report on Form 10-K for the year ended December 31, 2021 that was filed on March 14, 2022 and to update certain other information in the Registration Statement. No additional securities are being registered under this post-effective amendment and all applicable registration and filing fees were paid at the time of the original filing of the Registration Statement.

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020
Investments:
Fixed maturities available-for-sale, at fair value (amortized cost: $55.6 million and $55.9 million, respectively) $ 54.9 $ 56
Short-term investments9.1 0
Total investments64 56
Cash and cash equivalents775.6 452.3
Restricted cash43.1 40.1
Accounts receivable, net of allowance of $0.4 million and $0.5 million, respectively56.5 37.1
Reinsurance recoverable on paid and unpaid losses and LAE266.9 134.1
Prepaid reinsurance premiums231.6 129.4
Ceding commissions receivable41.6 21.3
Capitalized internal use software25.9 14.7
Goodwill53.5 47.8
Intangible assets32.2 33.9
Other assets51.8 12.7
Total assets1,642.7 979.4
Liabilities:
Loss and loss adjustment expense reserve260.8 105.1
Unearned premiums253.1 150.3
Reinsurance premiums payable159.4 86.1
Provision for commission12.3 28.2
Convertible promissory notes0 273
Derivative liability on notes0 113.3
Contingent consideration liability11.6 12
Preferred stock warrant liabilities0 22.9
Accrued expenses and other liabilities83.8 43.2
Total liabilities781 834.1
Commitments and contingencies (Note 15)
Convertible preferred stock:
Preferred stock, $0.0001 par value per share; 10,000,000 and 323,232,460 shares authorized as of December 31, 2021 and December 31, 2020, respectively; 0 and 305,887,443 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively; Liquidation preferences of $0 and $359.4 million as of December 31, 2021 and December 31, 2020, respectively0 344.8
Stockholders' equity (deficit)
Common stock, $0.0001 par value per share; 2,000,000,000 and 582,981,484 shares authorized as of December 31, 2021 and December 31, 2020, respectively; 565,031,129 and 92,547,013 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively0 0
Additional paid-in capital1,488.3 56.9
Accumulated other comprehensive (loss) income(0.7)0.1
Accumulated deficit(628)(256.6)
Total Hippo stockholders' equity (deficit)859.6 (199.6)
Noncontrolling interest2.1 0.1
Total stockholders' equity (deficit)861.7 (199.5)
Total liabilities, convertible preferred stock, and stockholders' equity (deficit) $ 1,642.7 $ 979.4

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020
Statement of Financial Position [Abstract]
Fixed maturities, available-for-sale, amortized cost $ 55.6 $ 55.9
Accounts receivable, allowance $ 0.4 $ 0.5
Convertible preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Convertible preferred stock, shares authorized (in shares)10,000,000 323,232,460
Convertible preferred stock, shares issued (in shares)0 305,887,443
Convertible preferred stock, shares outstanding (in shares)0 305,887,443
Convertible preferred stock, liquidation preference $ 0 $ 359.4
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares)2,000,000,000 582,981,484
Common stock, shares issued (in shares)565,031,129 92,547,013
Common stock, shares outstanding (in shares)565,031,129 92,547,013

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($)12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Revenue:
Net earned premium $ 38,900,000 $ 17,100,000
Commission income, net37,500,000 27,100,000
Service and fee income14,500,000 6,300,000
Net investment income300,000 1,100,000
Total revenue91,200,000 51,600,000
Expenses:
Losses and loss adjustment expenses84,400,000 25,300,000
Insurance related expenses41,700,000 19,300,000
Technology and development36,200,000 18,000,000
Sales and marketing95,000,000 69,400,000
General and administrative49,200,000 36,800,000
Interest and other expense, net198,900,000 26,000,000
Gain on extinguishment of debt(47,000,000)0
Total expenses458,400,000 194,800,000
Loss before income taxes(367,200,000)(143,200,000)
Income taxes expense (benefit)700,000 (1,800,000)
Net loss(367,900,000)(141,400,000)
Net income attributable to noncontrolling interests, net of tax3,500,000 100,000
Net loss attributable to Hippo(371,400,000)(141,500,000)
Other comprehensive loss:
Change in net unrealized gain or loss on investments, net of tax(800,000)0
Comprehensive loss attributable to Hippo(372,200,000)(141,500,000)
Per share data:
Net loss attributable to Hippo - basic(371,400,000)(141,500,000)
Net loss attributable to Hippo - diluted $ (371,400,000) $ (141,500,000)
Weighted-average shares used in computing net loss per share attributable to Hippo - basic (in shares)272,168,933 86,897,893
Weighted-average shares used in computing net loss per share attributable to Hippo - diluted (in shares)272,168,933 86,897,893
Net loss per share attributable to Hippo - basic (in dollars per share) $ (1.36) $ (1.63)
Net loss per share attributable to Hippo - diluted (in dollars per share) $ (1.36) $ (1.63)

Consolidated Statements of Chan

Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in MillionsTotalPreferred D StockPreferred E StockCommon StockAdditional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Accumulated DeficitTotal Hippo Stockholders' Equity (Deficit )Non controlling Interests
Beginning balance (in shares) at Dec. 31, 2019250,604,066
Beginning balance at Dec. 31, 2019 $ 190.3
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of preferred stock, net of issuance costs (in shares)2,235,226 53,048,151
Issuance of preferred stock, net of issuance costs $ 4.8 $ 149.7
Ending balance (in shares) at Dec. 31, 2020305,887,443 45,860,183 53,048,151
Ending balance at Dec. 31, 2020 $ 344.8 $ 99.8 $ 149.7
Beginning balance (in shares) at Dec. 31, 201983,936,968
Beginning balance at Dec. 31, 2019(78.3) $ 0 $ 36.7 $ 0.1 $ (115.1) $ (78.3) $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss(141.4)(141.5)(141.5)0.1
Issuance of common stock upon exercise of stock options (in shares)8,205,205
Issuance of common stock upon exercise of stock options2.5 2.5 2.5
Vesting of early exercised stock options (in shares)269,091
Vesting of restricted stock awards (in shares)135,749
Stock-based compensation expense17.7 17.7 17.7
Ending balance (in shares) at Dec. 31, 202092,547,013
Ending balance at Dec. 31, 2020 $ (199.5) $ 0 56.9 0.1 (256.6)(199.6)0.1
Increase (Decrease) in Temporary Equity [Roll Forward]
Exercise of preferred stock warrant (in shares)17,344,906
Exercise of preferred stock warrant $ 173.4
Convertible preferred stock conversion (in shares)(323,232,349)
Convertible preferred stock conversion $ (518.2)
Ending balance (in shares) at Dec. 31, 20210
Ending balance at Dec. 31, 2021 $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss(367.9)(371.4)(371.4)3.5
Other comprehensive loss(0.8)(0.8)(0.8)
Convertible preferred stock conversion (in shares)323,232,349
Convertible preferred stock conversion518.2 518.2 518.2
Convertible debt conversion (in shares)43,449,312
Convertible debt conversion434.5 434.5 434.5
Issuance of common stock in connection with the Business Combination, net (in shares)54,988,620
Issuance of common stock in connection with the Business Combination, net453.9 453.9 453.9
Acquisition of Public and Private Placement Warrants(14.6)(14.6)(14.6)
Issuance of common stock in an acquisition (in shares)1,200,000
Issuance of common stock in an acquisition $ 6.2 6.2 6.2
Issuance of common stock upon exercise of stock options (in shares)22,801,742
Issuance of common stock upon exercise of stock options and vesting of RSU's (in shares)22,089,626
Issuance of common stock upon exercise of stock options and vesting of RSU's $ 5.2 5.2 5.2
Vesting of early exercised stock options (in shares)343,370
Vesting of early exercised stock options0.8 0.8 0.8
Exercise of common stock warrants, net (in shares)27,202,571
Repurchase of common stock (in shares)(21,732)
Stock-based compensation expense27.2 27.2 27.2
Other(1.5)(1.5)
Ending balance (in shares) at Dec. 31, 2021565,031,129
Ending balance at Dec. 31, 2021 $ 861.7 $ 0 $ 1,488.3 $ (0.7) $ (628) $ 859.6 $ 2.1

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Cash flows from operating activities:
Net loss $ (367,900,000) $ (141,400,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization11,000,000 6,700,000
Stock–based compensation expense24,300,000 17,200,000
Change in fair value of preferred stock warrant liabilities121,600,000 16,200,000
Change in fair value of warrant liability(10,300,000)0
Change in fair value of contingent consideration liability3,500,000 3,400,000
Change in fair value of derivative liability on notes61,400,000 6,200,000
Amortization of debt discount20,400,000 0
Gain on extinguishment of debt(47,000,000)0
Non-cash interest expense5,700,000 0
Non-cash service expense7,000,000 0
Other non-cash items2,100,000 1,300,000
Changes in assets and liabilities:
Accounts receivable, net(19,500,000)(14,700,000)
Reinsurance recoverable on paid and unpaid losses and LAE(132,800,000)(17,700,000)
Ceding commissions receivable(20,300,000)(3,400,000)
Prepaid reinsurance premiums(102,200,000)2,500,000
Other assets(32,800,000)(7,800,000)
Provision for commission(15,900,000)15,300,000
Accrued expenses and other liabilities35,400,000 10,900,000
Loss and loss adjustment expense reserves155,700,000 11,800,000
Unearned premiums102,800,000 18,100,000
Reinsurance premiums payable73,300,000 10,000,000
Net cash used in operating activities(124,500,000)(65,400,000)
Cash flows from investing activities:
Capitalized internal use software costs(13,300,000)(9,000,000)
Purchase of intangible assets(3,300,000)0
Purchases of property and equipment(800,000)(400,000)
Purchases of investments(26,200,000)(16,700,000)
Maturities of investments5,800,000 76,800,000
Sales of investments10,700,000 30,700,000
Cash paid for acquisitions, net of cash acquired(600,000)(83,700,000)
Other(2,300,000)0
Net cash used in investing activities(30,000,000)(2,300,000)
Cash flows from financing activities:
Proceeds from the exercise of preferred stock warrants29,000,000 0
Proceeds from reverse recapitalization, net of redemptions, secondaries and costs450,300,000 0
Proceeds from exercise of options5,500,000 2,400,000
Payments of contingent consideration(2,400,000)(3,900,000)
Proceeds from promissory notes, net of issuance costs0 365,000,000
Other(1,600,000)0
Net cash provided by financing activities480,800,000 518,100,000
Net increase in cash, cash equivalents, and restricted cash326,300,000 450,400,000
Cash, cash equivalents, and restricted cash at the beginning of the period492,400,000 42,000,000
Cash, cash equivalents, and restricted cash at the end of the period818,700,000 492,400,000
Supplemental disclosures of non-cash financing and investing activities:
Conversion of preferred stock for common stock518,200,000 0
Conversion of convertible notes for common stock434,500,000 0
Acquisition of public and private placement warrants14,600,000 0
Convertible promissory notes issued for services7,000,000 12,500,000
Equity issued for acquisitions6,200,000 0
Preferred D Stock
Cash flows from financing activities:
Proceeds from preferred shares, net of issuance costs0 4,900,000
Preferred E Stock
Cash flows from financing activities:
Proceeds from preferred shares, net of issuance costs $ 0 $ 149,700,000

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Summary of Significant Accounting Policies1. Description of Business and Summary of Significant Accounting Policies Description of Business Hippo Holdings Inc., referred to herein as “Hippo” or the “Company” was originally incorporated under the name Reinvent Technology Partners Z (“RTPZ”), a Cayman Islands exempted company, on October 2, 2020 for the purpose of effecting a merger, capital stock-exchange, asset acquisition, share purchase, reorganization, or similar business combination. On August 2, 2021, RTPZ domesticated as a Delaware corporation and changed its name to “Hippo Holdings Inc.” (the “Domestication”) and consummated the merger (the “First Merger”) of RTPZ Merger Sub Inc. (“Merger Sub”), a Delaware corporation and subsidiary of RTPZ, with and into Hippo Enterprises Inc., a Delaware corporation (“Old Hippo”), with Old Hippo surviving the Merger as a wholly owned subsidiary of the Company immediately following the First Merger, Old Hippo (as the surviving corporation of the First Merger) was merged with and into the Company, with the Company surviving (the “Second Merger” and, together with the First Merger, the “Mergers” or the “Business Combination”). The Business Combination was completed pursuant to the terms of the Agreement and Plan of Merger, dated as of March 3, 2021, by and among RTPZ, Merger Sub and Old Hippo. For additional information on the Business Combination, refer to Note 2. The Company’s headquarters are located in Palo Alto, California. The Company’s subsidiary, Hippo Analytics Inc., is a licensed insurance agency that provides various insurance services, including some or all of the following services for affiliated and non-affiliated insurance carriers: soliciting, marketing, servicing, underwriting, or providing claims processing services for a variety of commercial and personal insurance products. The Company’s insurance company subsidiaries, Spinnaker Insurance Company (“Spinnaker”), an Illinois domiciled insurance company, Spinnaker Specialty Insurance Company (“SSIC”), a Texas domiciled authorized surplus lines insurance company, and Mainsail Insurance Company (“MIC”), a Texas domiciled insurance company, underwrite personal and commercial insurance products on a direct basis through licensed insurance agents and surplus lines brokers. Hippo Analytics Inc. offers its insurance products through licensed insurance agents, and direct-to-consumer channels. The insurance products offered through Hippo Analytics Inc. primarily include homeowners’ insurance policies that protect customers from the risks of fire, wind, and theft. Hippo Analytics Inc. is licensed as an insurance agency in 50 states and the District of Columbia and currently underwrites and distributes policies in 37 states as a managing general agent. The Company’s other non-insurance subsidiaries offer service contracts, home health check-ups, and home care advice. In November of 2019, Old Hippo formed a wholly-owned Cayman domiciled captive insurance company, RH Solutions Insurance (Cayman) Ltd. (“RHS”). In January of 2020, RHS began assuming insurance risk of policies from affiliated and non-affiliated insurance carriers solely for business written through Hippo Analytics Inc. In August 2020, Old Hippo acquired Spinnaker, which is a licensed property casualty carrier in all 50 states and the District of Columbia. Beginning in September 2020, in connection with the acquisition of Spinnaker, the Company also retains portions of direct insurance risk for programs underwritten by third parties. The amount of risk retention is varied across the different programs. The Company retains approximately 12% of the proportional risk through Spinnaker or RHS. Basis of Presentation and Consolidation The consolidated financial statements and accompanying notes of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries where it has controlling financial interests, and any variable interest entities for which the Company is deemed to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. As a result of the Business Combination, which was completed on August 2, 2021, prior period share and per share amounts presented in the accompanying Consolidated Financial Statements and these related notes have been converted in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. Refer to Note 2 for additional information. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, loss and loss adjustment expense (“LAE”) reserves, provision for commission slide and cancellations, reinsurance recoverable on paid and unpaid losses and LAE, the fair values of investments, common stock, stock-based awards, warrant liabilities, contingent consideration liabilities, embedded derivative liabilities, acquired intangible assets and goodwill, deferred tax assets and uncertain tax positions, and revenue recognition. The Company evaluates these estimates on an ongoing basis. These estimates are informed by experience and other assumptions that the Company believes are reasonable under the circumstances. Actual results may differ significantly from these estimates. Business Combinations The Company accounts for acquisitions of entities or asset groups that qualify as businesses using the acquisition method of accounting in accordance with ASC 805, Business Combinations. Purchase consideration is allocated to the tangible and intangible assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date, which are measured in accordance with the principles outlined in ASC 820, Fair Value Measurement. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature. The excess of the total purchase consideration over the fair value of the identified net assets acquired is recognized as goodwill. The results of the acquired businesses are included in the results of operations beginning from the date of acquisition. Acquisition-related costs are expensed as incurred. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the allocation of purchase consideration and to the fair values of assets acquired and liabilities assumed to the extent that additional information becomes available. After this period, any subsequent adjustments are recorded in the Consolidated Statements of Operations and Comprehensive Income (Loss). The Business Combination on August 2, 2021 was accounted for as a reverse recapitalization. See Note 2 for additional information. Segment Information The Company’s chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, the Company has a single operating and reportable segment structure. Primarily all the Company’s long-lived assets are in the United States. Cash, Cash Equivalents, and Restricted Cash Cash consists of cash on deposit. The Company considers all highly liquid securities readily convertible to cash, that mature within three months or less from the original date of purchase to be cash equivalents. The Company’s restricted cash relates to cash restricted to support issued letter of credits and collateral to insurers. The Company’s restricted cash also includes fiduciary assets. Fiduciary Assets and Liabilities In its capacity as an insurance agent and broker, the Company collects premiums from insureds and, after deducting its commission, remits the premiums to the respective insurers. The Company also processes claims on behalf of insurers and collects claims from insurers on behalf of insureds. Premiums collected from insureds but not yet remitted to insurance companies and claims collected from insurance companies but not yet remitted to insureds are fiduciary assets. Fiduciary assets are recorded within restricted cash in the Company’s consolidated balance sheets. Unremitted insurance premiums and claims held in a fiduciary capacity and the obligation to remit these funds is recorded as fiduciary liabilities within accrued expenses and other liabilities in the consolidated balance sheets. Investments The Company has categorized its investment portfolio as available-for-sale and has reported the portfolio at fair value, adjusted for other-than-temporary declines in fair value, with unrealized gains and losses, net of tax, reported as an amount in other comprehensive loss. Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Amortization of premium and accretion of discount are computed using the scientific method (constant yield to worst). Realized gains and losses are determined using specific identification method and included in the determination of income. Net investment income includes interest and dividend income, amortization and accretion of investment premiums and discounts, respectively, realized gains and losses on sales of securities, and other-than-temporary declines in the fair value of securities, if any. The Company regularly reviews all the investments for other-than-temporary declines in fair value. The review includes the consideration of the cause of the impairment, including the creditworthiness of the security issuers, the number of securities in an unrealized loss position, the severity and duration of the unrealized losses, whether the Company has the intent to sell the securities, and whether it is more likely than not the Company will be required to sell the securities before the recovery of their amortized cost basis. When the Company determines that the decline in fair value of an investment is below the accounting basis and the decline is other-than-temporary, it reduces the carrying value of the security and records a loss for the amount of such decline in net investment income in the consolidated statements of operations and comprehensive loss. Fair Value of Financial Instruments The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions, and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
• Level 1 — Quoted prices in active markets for identical assets or liabilities that are publicly accessible at the measurement date.
• Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
• Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The Company’s financial instruments include cash equivalents, restricted cash, fixed maturities, short-term investments, accounts receivable, accounts payable, assumed and ceded reinsurance contracts, preferred stock warrants and public and private warrants. Cash equivalents and restricted cash are principally stated at amortized cost, which approximates their fair value. Short-term investments and preferred stock warrants are reported at fair value. The recorded carrying amount of accounts receivable, assumed and ceded reinsurance contracts, and accounts payable approximates their fair value due to their short-term nature. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk are primarily comprised of cash and cash equivalents, short-term investments, fixed maturities available-for-sale, and reinsurance recoverables. Cash deposits may, at times, exceed amounts insured by the Federal Deposit Insurance Corporation and the Securities Investor Protection Corporation. However, its exposure to credit risk in the event of default by the financial institutions is limited to the extent of amounts recorded on the balance sheet. The Company performs evaluations of the relative credit standing of these financial institutions to limit the amount of credit exposure. The Company has not experienced any losses on its deposits of cash and cash equivalents to date. The Company limits its exposure to credit losses by investing in money market funds, U.S. government securities, or securities with average credit quality of AA- or better. Premium receivables are a mix of receivables due from policyholders, agents, and program administrators. The Company has no significant off-balance-sheet concentration of credit risks such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. The Company enters into quota share and excess of loss contracts which may be susceptible to catastrophe exposure. The ceding of insurance does not legally discharge the Company from its primary liability for the full amount of the policy coverage, and therefore the Company will be required to pay the loss and bear collection risk if the reinsurer fails to meet its obligations under the reinsurance agreement. To minimize exposure to significant losses from reinsurance insolvencies, the Company evaluates the financial condition of its reinsurers, monitors concentrations of credit risk and, in certain circumstances, holds substantial collateral (in the form of funds withheld and letters of credit) as security under the reinsurance agreements. Accounts Receivable Accounts receivable consists of premium receivables and commission receivables and is reported net of an allowance for premium amounts or estimated uncollectible commission. Such allowance is based upon an ongoing review of amounts outstanding, length of collection periods, the creditworthiness of the insured and other relevant factors. Amounts deemed to be uncollectible are written off against the allowance. As of December 31, 2021 and 2020, the Company has an allowance of $0.4 million and $0.5 million, respectively. Write-offs of receivables have not been material to the Company during the years ended December 31, 2021 and 2020. Reinsurance Reinsurance recoverable, including amounts related to incurred but not reported claims (“IBNR”), represent paid losses and LAE and reserves for unpaid losses and LAE ceded to reinsurers that are subject to reimbursement under reinsurance treaties. To minimize exposure to losses related to a reinsurer’s inability to pay, the financial condition of such reinsurer is evaluated initially upon placement of the reinsurance and periodically thereafter. In addition to considering the financial condition of a reinsurer, the collectability of the reinsurance recoverable is evaluated based upon a number of other factors. Such factors include the amounts outstanding, length of collection periods, disputes, any collateral or letters of credit held and other relevant factors. To the extent that an allowance for uncollectible reinsurance recoverable is established, amounts deemed to be uncollectible would be written off against the allowance for estimated uncollectible reinsurance recoverable. The Company currently has no allowance for uncollectible reinsurance recoverable. Ceded premium written is recorded in accordance with the applicable terms of the reinsurance contracts and ceded premium earned is charged against revenue over the period of the reinsurance contracts. Ceded losses incurred reduce net loss and LAE incurred over the applicable periods of the reinsurance contracts with third-party reinsurers. Prepaid reinsurance premiums represents the unearned portion of premiums ceded to reinsurers. Amounts recoverable from reinsurers are estimated in a manner consistent with the liability associated with the reinsured business and consistent with the terms of the underlying contract. Deferred Policy Acquisition Costs, net of Ceding Commissions Incremental direct costs of acquiring insurance contracts and certain costs related directly to the acquisition process are deferred and amortized over the term of the policies or reinsurance treaties to which they relate. Those costs include commissions, premium taxes, and board and bureau fees. Ceding commissions relating to reinsurance agreements are recorded as a reimbursement for both deferrable and non-deferrable acquisition costs. The portion of the ceding commission that is equal to the pro-rata share of acquisition costs based on quota share percentage is recorded as an offset to the direct deferred acquisition costs. Any portion of the ceding commission that exceeds the deferrable acquisition costs of the business ceded is recorded as a deferred liability and amortized over the same period in which the related premiums are earned. The amortization of deferred policy acquisition costs is included in insurance related expenses on the consolidated statements of operations and comprehensive loss. The Company amortized deferred policy acquisition costs of $13.9 million and $3.7 million for the years ended December 31, 2021 and 2020, respectively. Premium Deficiency A premium deficiency is recognized if the sum of expected losses and LAE, unamortized acquisition costs, and policy maintenance costs exceeds the remaining unearned premiums. A premium deficiency would first be recognized by charging any unamortized acquisition costs to expense to the extent required to eliminate the deficiency. If the premium deficiency was greater than unamortized acquisition costs, a liability would be accrued for the excess deficiency. The Company does not consider anticipated investment income when determining if a premium deficiency exists. The Company recognized a $0.3 million and nil premium deficiency at December 31, 2021 and 2020, respectively. Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation and is reflected within other assets on the consolidated balance sheets. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful life of three years for furniture, fixtures, and equipment and two years for computer equipment. Leasehold improvements are also depreciated using the straight-line method and are amortized over the shorter of the remaining term of the lease or the useful life of the improvement. Depreciation expense totaled $0.4 million for the years ended December 31, 2021 and 2020, respectively. Expenditures for improvements are capitalized, and expenditures for maintenance and repairs are expensed as incurred. Upon sale or retirement, the cost and related accumulated depreciation is removed from the related accounts, and the resulting gain or loss, if any, is reflected in interest and other expense in the consolidated statements of operations and comprehensive loss. Leases The Company categorizes leases at their inception as either operating or capital leases. As of and for the years ended December 31, 2021 and 2020, the Company’s leases are categorized as operating. In certain lease agreements, the Company may receive rent holidays and other incentives. For operating leases, the Company recognizes lease costs on a straight-line basis once control of the space is achieved, without regard to deferred payment terms such as rent holidays that defer the commencement date of required payments. Additionally, incentives received are treated as a reduction of costs over the term of the agreement. Capitalized Internal Use Software The Company capitalizes the costs to develop its internal use software when preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. Such costs are amortized on a straight-line basis over the estimated useful life of five years. Costs incurred prior to meeting these criteria, in addition to costs incurred for training and maintenance, are expensed as incurred. Goodwill and Intangible Assets The Company accounts for business combinations using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recorded at their fair values as of the acquisition date on the consolidated balance sheets. Any excess of purchase price over the fair value of net assets acquired is recorded as goodwill. The determination of estimated fair value requires the Company to make significant estimates and assumptions. Transaction costs associated with business combinations are expensed as they are incurred. Included in the purchase price of an acquisition may be an estimation of the fair value of liabilities associated with contingent consideration. The fair value of contingent consideration is based upon the present value of the expected future payments to be made to the sellers of an acquired business in accordance with the provisions contained in the respective purchase agreements. Subsequent changes in the fair value of contingent consideration are recorded in the consolidated statements of operations and comprehensive loss. When the Company determines net assets acquired does not meet the definition of a business combination under the acquisition method of accounting, the transaction is accounted for as an acquisition of assets and, therefore, no goodwill is recorded. Amortization and Impairment Intangible assets with finite useful lives are amortized over their estimated useful lives in the consolidated statements of operations and comprehensive loss. Indefinite-lived intangible assets and goodwill are not amortized but are tested for impairment annually, or more frequently if necessary. The goodwill impairment test is performed at the reporting unit level. To review for impairment the Company first assess qualitative factors to determine whether events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. After assessing the totality of events and circumstances, if the Company determines that it is not more likely than not that the fair value of a reporting units is less than its carrying amount, no further assessment is performed. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company calculates the fair value of that reporting unit and compares the fair value to the reporting unit’s net book value. If the fair value of the reporting unit is greater than its net book value, there is no impairment. If the net book value exceeds the reporting unit’s fair value, an impairment loss is recognized, with the loss not exceeding the total amount of goodwill allocated to that reporting unit. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. Indefinite-lived intangible assets are tested for impairment by comparing the estimated fair value of the asset to the asset’s carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized, and the asset is written down to its estimated fair value. There were no material impairment losses recognized on indefinite-lived intangible assets or goodwill during the years ended December 31, 2021 and 2020. The Company evaluates the recoverability of long-lived assets, excluding goodwill and indefinite-lived intangible assets, whenever events or changes in circumstances indicate the carrying value of such asset may not be recoverable. Should there be an indication of impairment, the Company tests for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of the asset to the carrying amount of the asset or asset group. If the asset or asset group is determined to be impaired, any excess of the carrying value of the asset or asset group over its estimated fair value is recognized as an impairment loss. There were no material impairment losses recognized on long-lived assets during the years ended December 31, 2021 and 2020. Loss and Loss Adjustment Expense Reserve The reserve for unpaid losses and loss adjustment expenses include estimates for unpaid claims, claims adjustment expenses on reported losses and estimates of losses incurred but not reported (IBNR), net of salvage and subrogation recoveries. The liability is based on the Company’s best estimate of the amounts yet to be paid for all loss and loss adjustment expenses that will be paid on claims that occurred during the period and prior, whether those claims are currently known or unknown. Loss and loss adjustment reserves at December 31, 2021 are the amount of ultimate loss and loss adjustment expense less the paid amounts as of December 31, 2021. Ultimate loss and loss adjustment expense is the sum of the following items:
1. Loss and loss adjustment expense paid through a given evaluation date
2. Case reserves for loss and loss adjustment expense for losses that have been reported but not yet paid as of a given evaluation date
3. IBNR for loss and loss adjustment expense include an estimate for future loss payments on incurred claims not yet reported and for expected development on reported claims Case reserves are established within the claims adjustment process based on all known circumstances of a claim at the time. In addition, IBNR reserves are established by the Company based on reported loss and loss adjustment expenses and estimates of ultimate loss and loss adjustment expenses based on generally accepted actuarial reserving techniques that consider quantitative loss experience data and qualitative factors as appropriate. The most significant assumptions used in the determination of the recorded reserve for loss and loss adjustment expenses are historical aggregate claim reporting and payment patterns, which is assumed to be indicative of future loss development and trends. Additionally, claim counts are used for analyses relating to natural disasters, such as hurricanes, earthquakes, and wildfires as losses from these events are inherently more difficult to estimate due to the potential exposure of the catastrophic events. Other assumptions considered include information developed from internal and independent external sources such as premium, rate and cost trends, litigation and regulatory trends, legislative activity, climate change, social and economic patterns. Inherent in the estimates of ultimate loss and loss adjustment expenses are expected trends in claims severity and frequency among other factors that could vary significantly as claims are settled. The Company’s loss and loss adjustment expense reserves are continually reviewed, and adjustments, if any, are reflected in current operations in the consolidated statements of operations and comprehensive loss in the period in which they become known. The establishment of new loss and loss adjustment expense reserves or the adjustment of previously recorded loss and loss adjustment expense reserves could result in significant positive or negative changes to the Company’s financial condition for any particular period. While the Company believes that it has made a reasonable estimate of loss and loss adjustment expense reserves, the ultimate loss experience may not be as reliably predicted as may be the case with other insurance expenses, and it is possible that actual loss and loss adjustment expenses will be higher or lower than the loss and loss adjustment reserve amount recorded by the Company. Provision for Commission Provision for commission includes return commission payable to insurers based on the actual performance of insurance policies issued by the Company against a contractual range of performance targets. The Company’s reserve estimation is based on current and historical performance of the portfolio of insurance policies placed with the insurance carriers. Provision for commission also includes cancellation reserve which represent the Company’s estimate of return commission payable to insureds based on policy cancellations after the effective date. The Company’s estimation for the reserve uses historical policy cancellation. The commission slide and cancellation liabilities are based on assumptions and estimates, and while management believes the amount recorded is the Company’s best estimate, the ultimate liability may differ from the amount recorded. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in the period in which they become known. Revenue Recognition Net Earned Premium Net earned premium represents the earned portion of the Company’s gross written premium for insurance policies written or assumed by the Company and less ceded written premium (any portion of the Company’s gross written premium that is ceded to third-party reinsurers under the Company’s reinsurance agreements). The Company earns written premiums on a pro-rata basis over the term of the policies. Unearned premium represents the unexpired portion of the Company’s gross written premium. Amounts applicable to reinsurance ceded for unearned premium reserves are reported as a prepaid reinsurance premiums on the consolidated balance sheet. Commission Income, net Commission income, net includes:
1. Managing General Agent (“MGA”) Commission: The Company operates as a MGA for multiple insurers. The Company designs and underwrites insurance products on behalf of the insurers culminating in the sale of insurance policies. The Company earns recurring commission and policy fees associated with the policies, they sell. While the Company has underwriting authority and responsibility for administering claims, the Company does not take the risk associated with policies on the consolidated balance sheets. Rather, the Company works with affiliated and unaffiliated carrier platforms and a diversified panel of highly rated reinsurance companies who pay the Company commission in exchange for the opportunity to take that risk on their balance sheets. The Company’s performance obligation associated with these contracts is the placement of the policy, which is met on the effective data. Upon issuance of a new policy, the Company charges policy fees and inspection fees, retains the share of ceding commission, and remits the balance of premium collected to the respective insurers. Subsequent ceding commission adjustments arising from policy changes such as endorsements, are recognized when the adjustments can be reasonably estimated.
2. Agency Commission: The Company also operates licensed insurance agencies that are engaged solely in the sale of policies, including non-Hippo policies. For these policies, the Company earns a recurring agency commission from the carriers whose policies the Company sells, which is recorded in the commission i

Business Combinations

Business Combinations12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Business Combinations2. Business Combinations Business Combination — Reverse Recapitalization On August 2, 2021, the Company completed the Business Combination (the “Closing”). The Business Combination was accounted for as a reverse recapitalization, with no goodwill or other intangible assets recorded, in accordance with GAAP. Under this method of accounting, RTPZ was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the reverse recapitalization was treated as the equivalent of Old Hippo issuing stock for the net assets of RTPZ, accompanied by a recapitalization. Operations prior to the reverse recapitalization were those of Old Hippo. In connection with the Business Combination:
• Certain accredited investors (the “PIPE Investors”) entered into subscription agreements (the “PIPE Subscription Agreements”) pursuant to which the PIPE Investors agreed to purchase 55,000,000 shares (the “PIPE Shares”) of the Company’s common stock at a purchase price per share of $10.00 and an aggregate purchase price of $550.0 million (the “PIPE Investment”). The PIPE Investment was consummated concurrently with the Closing.
• Hippo used $95.0 million to reacquire 9,500,000 shares of common stock from certain stockholders of Old Hippo prior to the Business Combination.
• Prior to the Business Combination, RTPZ issued an aggregate of 5,750,000 shares of Class B common stock (the “Founder Shares”) to Reinvent Sponsor Z LLC, a Cayman Islands limited liability company (the “Sponsor”) for an aggregate purchase price of $25,000 in cash. All outstanding Founder Shares were automatically converted into shares of the Company’s common stock on a one-for-one basis at the Closing and will continue to be subject to the transfer restrictions applicable to such Founder Shares.
• Prior to the Closing, holders of 19,261,380 shares of Class A common stock of RTPZ exercised their rights to redeem those shares for cash at an approximate price of $10.00 per share, for an aggregate of approximately $192.6 million which was paid to such holders at Closing. The remaining Class A common stock of RTPZ converted into shares of the Company’s common stock on a one-for-one basis at the Closing.
• Immediately after giving effect to the Merger and the PIPE Investment, there were 559,731,226 shares of Hippo common stock outstanding. The aggregate gross cash consideration received by the Company in connection with the Business Combination and the PIPE investment was $587.7 million, which consisted of proceeds of $550.0 million from the PIPE Investment, plus approximately $37.7 million of cash from the Company’s trust account that held the proceeds from RTPZ’s initial public offering (the “Trust Account”) post-redemption of shares of RTPZ’s Class A common stock from RTPZ’s Class A stockholders. The aggregate cash consideration received was reduced by $95.0 million for the repurchase of common stock and reduced by $42.4 million for the payment of direct transaction costs incurred by Old Hippo and the Company which were reflected as a reduction of proceeds. The remaining consideration consisted of 495,242,606 newly issued shares of the Company’s common stock. The following table reconciles the elements of the Business Combination and the PIPE investment to the Condensed Consolidated Statements of Cash Flows and the Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the year ended December 31, 2021:
in millions Recapitalization
Cash in trust, net of redemptions $ 37.7
Cash — PIPE 550.0
Less: Cash used for repurchase of common stock (95.0 )
Less: transaction costs and advisory fees (42.4 )
Net cash received from the Business Combination and PIPE investment $ 450.3
Net assets acquired from the Business Combination 3.6
Total $ 453.9
The number of shares of common stock issued immediately following the consummation of the Business Combination and the PIPE Investment:
Number of Shares
Class A common stock outstanding prior to Business Combination 23,000,000
Less: Redemption of RTPZ Class A common stock (19,261,380 )
Class A common stock of RTPZ 3,738,620
RTPZ Founder shares — Class B 5,750,000
PIPE Shares 55,000,000
Business Combination and PIPE shares which converted to Hippo common stock 64,488,620
Old Hippo shares, net of repurchase (1) 495,242,606
Total shares of common stock outstanding immediately after Business Combination and PIPE investment 559,731,226
(1) The number of Old Hippo shares was determined based on Old Hippo common stock outstanding immediately prior to the closing of the Business Combination multiplied by the Exchange Ratio of 6.95433 adjusted for buyback of 9,500,000 shares of common stock. For further details, refer to Note 17, Stockholders’ Equity. In connection with the Business Combination, preferred stock warrants were exercised for cash proceeds of $29.0 million. See also Note 13, Convertible Promissory Notes and Derivative Liability, Note 14, Public Warrants and Private Placement Warrants, Note 16, Convertible Preferred Stock, and Note 17, Stockholders’ Equity for additional information regarding changes to the instruments as a result of the Business Combination.

Investments

Investments12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Investments 3. Investments The amortized cost and fair value of fixed maturities securities and short-term investments are as follows (in millions):
December 31, 2021
Amortized Unrealized Unrealized Fair
Fixed maturities available-for-sale:
U.S. government and agencies $ 9.3 $ — $ — $ 9.3
States, and other territories 5.8 — (0.1 ) 5.7
Corporate securities 17.3 — (0.2 ) 17.1
Foreign securities 0.9 — — 0.9
Residential mortgage-backed securities 10.8 — (0.2 ) 10.6
Commercial mortgage-backed securities 4.8 — (0.1 ) 4.7
Asset backed securities 6.7 — (0.1 ) 6.6
Total fixed maturities available-for-sale 55.6 — (0.7 ) 54.9
Short-term investments:
U.S. government and agencies 9.1 — — 9.1
Total $ 64.7 $ — $ (0.7 ) $ 64.0
December 31, 2020
Amortized Unrealized Unrealized Fair
Fixed maturities available-for-sale:
U.S. government and agencies $ 10.1 $ — $ — $ 10.1
States, and other territories 5.1 — — 5.1
Corporate securities 17.4 — — 17.4
Foreign securities 0.8 — — 0.8
Residential mortgage-backed securities 12.9 — — 12.9
Commercial mortgage-backed securities 5.4 0.1 — 5.5
Asset backed securities 4.2 — — 4.2
Total $ 55.9 $ 0.1 $ — $ 56.0
As of December 31, 2021, no securities have been in a continuous unrealized loss position for greater than 12 months. There were no other-than-temporary impairments recognized for the years ended December 31, 2021 and 2020. The amortized cost and fair value of fixed maturities securities by contractual maturity are as follows (in millions):
December 31, 2021
Amortized Fair
Due to mature:
One year or less $ 10.5 $ 10.5
After one year through five years 18.3 18.1
After five years 4.5 4.4
Residential mortgage-backed securities 10.8 10.6
Commercial mortgage-backed securities 4.8 4.7
Asset backed securities 6.7 6.6
Total fixed maturities available-for-sale $ 55.6 $ 54.9
Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Net realized gains on fixed maturity securities were insignificant for the years ended December 31, 2021 and 2020, respectively. The Company’s net investment income is comprised of the following (in millions):
Year Ended
2021 2020
Fixed maturities income $ 0.4 $ 1.1
Short-term investment income — —
Total gross investment income 0.4 1.1
Investment expenses (0.1 ) —
Net investment income $ 0.3 $ 1.1
Pursuant to certain regulatory requirements, the Company is required to hold assets on deposit with various state insurance departments for the benefit of policyholders. These special deposits are included in cash and cash equivalents, or fixed maturities, available-for-sale on the consolidated balance sheets. The following table summarizes special deposits (in millions):
December 31, 2021 December 31, 2020
Amortized Fair Amortized Fair
State
New York $ 3.2 $ 3.2 $ 3.1 $ 3.1
Illinois 1.9 1.9 1.6 1.6
Colorado 1.4 1.5 1.5 1.5
Virginia 0.3 0.4 0.4 0.4
North Carolina 0.3 0.3 0.3 0.3
New Mexico 0.3 0.3 0.4 0.4
Vermont 0.3 0.3 0.3 0.3
Florida 0.3 0.3 0.3 0.3
Nevada 0.2 0.2 0.4 0.4
Massachusetts 0.1 0.1 0.1 0.1
Georgia 0.1 0.1 — —
Total states $ 8.4 $ 8.6 $ 8.4 $ 8.4

Cash, Cash Equivalents, and Res

Cash, Cash Equivalents, and Restricted Cash12 Months Ended
Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents, and Restricted Cash4. Cash, Cash Equivalents, and Restricted Cash The following table sets forth the cash, cash equivalents, and restricted cash (in millions):
December 31, December 31,
Cash and cash equivalents:
Cash $ 219.2 $ 56.7
Money market funds 556.4 372.1
Treasury bills — 23.5
Total cash and cash equivalents 775.6 452.3
Restricted cash:
Fiduciary assets 25.0 12.1
Letters of credit and cash on deposit 18.1 28.0
Total restricted cash 43.1 40.1
Total cash, cash equivalents, and restricted cash $ 818.7 $ 492.4

Fair Value Measurement

Fair Value Measurement12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurement 5. Fair Value Measurement The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis (in millions):
December 31, 2021
Level 1 Level 2 Level 3 Total
Financial assets:
Cash equivalents:
Money market funds $ 556.4 $ — $ — $ 556.4
Total cash equivalents 556.4 — — 556.4
Fixed maturities available-for-sale:
U.S. government and agencies 9.3 — — 9.3
States, and other territories — 5.7 — 5.7
Corporate securities — 17.1 — 17.1
Foreign securities — 0.9 — 0.9
Residential mortgage-backed securities — 10.6 — 10.6
Commercial mortgage-backed securities — 4.7 — 4.7
Asset backed securities — 6.6 — 6.6
Total fixed maturities available-for-sale 9.3 45.6 — 54.9
Short term investments
U.S. government and agencies — 9.1 — 9.1
Total financial assets $ 565.7 $ 54.7 $ — $ 620.4
Financial liabilities:
Contingent consideration liability $ — $ — $ 11.6 $ 11.6
Public warrants 2.2 — — 2.2
Private placement warrants — 2.1 — 2.1
Total financial liabilities $ 2.2 $ 2.1 $ 11.6 $ 15.9
December 31, 2020
Level 1 Level 2 Level 3 Total
Financial assets:
Cash equivalents:
Money market funds $ 372.1 $ — $ — $ 372.1
Treasury bills 23.5 — — 23.5
Total cash equivalents 395.6 — — 395.6
Fixed maturities available-for-sale:
U.S. government and agencies 10.1 — — 10.1
States, and other territories — 5.1 — 5.1
Corporate securities — 17.4 — 17.4
Foreign securities — 0.8 — 0.8
Residential mortgage-backed securities — 12.9 — 12.9
Commercial mortgage-backed securities — 5.5 — 5.5
Asset backed securities — 4.2 — 4.2
Total fixed maturities available-for-sale 10.1 45.9 — 56.0
Total financial assets $ 405.7 $ 45.9 $ — $ 451.6
Financial liabilities:
Derivative liability on convertible promissory notes $ — $ — $ 113.3 $ 113.3
Contingent consideration liability — — 12.0 12.0
Preferred stock warrant liabilities — — 22.9 22.9
Total financial liabilities $ — $ — $ 148.2 $ 148.2
The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels at the end of each reporting period. Other than the Private Warrant Liability noted below there were no transfers between levels in the fair value hierarchy during the years ended December 31, 2021 and December 31, 2020. Preferred Stock Warrant Liabilities The table below presents changes in the preferred stock warrant liability valued using Level 3 inputs (in millions):
2021 2020
Balance as of January 1, $ 22.9 $ 6.7
Changes in fair value 121.6 16.2
Settlement of preferred stock warrants (144.5 ) —
Balance as of December 31, $ — $ 22.9
Contingent Consideration The contingent consideration, relating to the Company’s 2019 acquisition of North American Advantage Insurance Services, LLC is re-valued to fair value at the end of each reporting period using the present value of future payments based on an estimate of revenue and customer renewals of the acquiree. North American Advantage Insurance Services, LLC’s ultimate parent company was Lennar Corporation, a related party of the Company. There is no limit to the maximum potential contingent consideration as the consideration is based on acquired customer retention. The table below presents the changes in the contingent consideration liability valued using Level 3 inputs (in millions):
2021 2020
Balance as of January 1, $ 12.0 $ 13.8
Payments of contingent consideration (3.9 ) (5.2 )
Changes in fair value 3.5 3.4
Balance as of December 31, $ 11.6 $ 12.0
Derivative liability on notes The embedded derivative liabilities on the issued and outstanding convertible promissory notes are re-valued to the current fair value at the end of each reporting period using the income-based approach with or without a 10% discount. As of August 2, 2021, the expected time to conversion used in the final mark to market valuation was 0.0-2.6 years. The table below presents the changes in derivative liability on convertible promissory notes valued using Level 3 inputs (in millions):
2021 2020
Balance as of January 1, $ 113.3 $ —
Initial measurement of new derivative 2.8 107.2
Changes in fair value 61.4 6.1
Settlement of derivative liability (177.5 ) —
Balance as of December 31, $ — $ 113.3
Warrant liability The public and private warrants (as noted in Note 14) were acquired as part of the Business Combination and are measured at fair value on a recurring basis at the end of each reporting period within accrued expenses and other liabilities in the consolidated balance sheet. The Public Warrant Liability is classified as a Level 1 fair value measurement due to the use of an observable market quote in an active market. The Company reclassified the Private Placement Warrants from Level 3 to Level 2 as of December 31, 2021, as the Company considers the fair value of each Private Placement Warrant to be equivalent to that of each Public Warrant, with an immaterial adjustment for short-term marketability restrictions. The following table presents the changes in the fair value of the warrant liability (Public Warrants and Private Placement Warrants) (in millions):
2021
Balance as of January 1, $ —
Initial measurement of warrants 14.6
Changes in fair value (10.3 )
Balance as of December 31, $ 4.3

Goodwill

Goodwill12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill6. Goodwill The following table represents the changes in goodwill (in millions):
Balance at January 1, 2020 $ 1.9
Additions from acquisitions 45.9
Balance at December 31, 2020 $ 47.8
Additions from acquisitions 5.2
Other adjustments 0.5
Balance at December 31, 2021 $ 53.5
See Note 20 for additional information regarding the Company’s acquisitions including recognition of goodwill.

Intangible Assets

Intangible Assets12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets7. Intangible Assets
December 31, 2021 December 31, 2020
Weighted- Gross Accumulated Net Gross Accumulated Net
(in millions) (in millions)
Agency and carrier relationships 6.9 $ 13.5 $ (1.7 ) $ 11.8 $ 13.5 $ (0.1 ) $ 13.4
State licenses and domain name Indefinite 10.5 — 10.5 7.1 — 7.1
Customer relationships 3.2 13.7 (6.0 ) 7.7 13.2 (3.8 ) 9.4
Developed technology 0.3 3.6 (2.7 ) 0.9 3.6 (1.4 ) 2.2
VOBA 0.7 0.1 (0.1 ) — 0.1 — 0.1
Other 6.5 2.0 (0.7 ) 1.3 1.9 (0.2 ) 1.7
Total intangible assets, net $ 43.4 $ (11.2 ) $ 32.2 $ 39.4 $ (5.5 ) $ 33.9
Amortization expense related to intangible assets for the years ended December 31, 2021 and 2020 was $5.7 million and $3.7 million, respectively. The amortization expense is included in technology and development expenses for developed technology, sales and marketing expenses for customer relationships, agency relationships, carrier relationships and other. Amortization expense related to value of business acquired (VOBA) is included in general and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss. As of December 31, 2021, the projected annual amortization expense for the Company’s intangible assets for the next five years is as follows (in millions):
Year ending December 31,
2022 $ 5.2
2023 4.2
2024 4.0
2025 2.4
2026 1.7
Thereafter 4.2
Total $ 21.7

Capitalized Internal Use Softwa

Capitalized Internal Use Software12 Months Ended
Dec. 31, 2021
Research and Development [Abstract]
Capitalized Internal Use Software8. Capitalized Internal Use Software The following table represents the changes in capitalized internal use software:
December 31, December 31,
(in millions)
Capitalized internal use software $ 34.5 $ 18.4
Less: accumulated amortization (8.6 ) (3.7 )
Total capitalized internal use software $ 25.9 $ 14.7
Amortization expense totaled $4.9 million and $2.6 million for the years ended December 31, 2021 and 2020, respectively.

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities12 Months Ended
Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued Expenses and Other Liabilities9. Accrued Expenses and Other Liabilities
December 31, December 31,
(in millions)
Claim payments outstanding $ 23.2 $ 9.9
Deferred revenue 11.2 1.7
Advances from customers 8.7 4.4
Employee related accruals 8.5 5.0
Accrued licenses and taxes 5.8 2.5
Premium refund liability 4.8 2.6
Warrant liability 4.3 —
Fiduciary liability 3.7 5.0
Other 13.6 12.1
Total accrued expenses and other liabilities $ 83.8 $ 43.2

Loss and Loss Adjustment Expens

Loss and Loss Adjustment Expense Reserves12 Months Ended
Dec. 31, 2021
Insurance [Abstract]
Loss and Loss Adjustment Expense Reserves 10. Loss and Loss Adjustment Expense Reserves The reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance is summarized as follows for the year ended December 31, (in millions):
2021 2020
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of beginning of the period $ 105.1 $ —
Reinsurance recoverables on unpaid losses (92.1 ) —
Reserve for losses and LAE, net of reinsurance recoverables as of beginning of the period 13.0 —
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year 85.0 25.3
Prior years (0.6 ) —
Total incurred 84.4 25.3
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year 43.6 17.0
Prior year 9.8 0.3
Total paid 53.4 17.3
Reserve for losses and LAE, net of reinsurance recoverables acquired from Spinnaker — 5.0
Reserve for losses and LAE, net of reinsurance recoverables at end of period 44.0 13.0
Add: Reinsurance recoverables on unpaid losses and LAE at end of period 216.8 92.1
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of end of the period $ 260.8 $ 105.1
Loss development occurs when actual losses incurred vary from the Company’s previously developed estimates, which are established through our reserve analysis processes. Net incurred losses and LAE experienced favorable development of $0.6 million and nil for the years ended December 31, 2021 and 2020, respectively. The prior period net reserve release of $0.6 million was driven by favorable net loss development relating to the 2020 accident year. While the 2020 accident year had unfavorable gross reserve development of $6.2 million on Hurricane Sally, the net impact for that event was nil due to our reinsurance protection. These changes are generally a result of ongoing analysis of recent loss development trends. Loss and LAE are updated as additional information becomes known. Unpaid loss and LAE includes anticipated salvage and subrogation recoverable. The amount of anticipated salvage and subrogation recoverable is insignificant as of December 31, 2021. Incurred loss and LAE, net of reinsurance The following tables present information about incurred and paid loss development as of December 31, 2021, net of reinsurance, as well as cumulative claim frequency and the total of IBNR reserves. For the purpose of defining claims frequency, the number of reported claims is by loss occurrence and does not include claims that do not result in indemnification of loss. The information about incurred and paid claims development for the years ended prior to December 31, 2021 is presented as unaudited supplementary information. In addition, the following table shows incurred loss and LAE by accident year in aggregate as the Company has one single operating and reportable segment (in millions, except for number of claims):
December 31, December 31, 2021
2015* 2016* 2017* 2018* 2019* 2020* 2021 IBNR Cumulative
Accident Year
2015 $ — $ — $ — $ — $ — $ — $ — $ — 7
2016 2.5 1.9 1.9 1.8 1.8 1.8 — 715
2017 5.2 4.4 4.0 4.0 4.0 — 3,072
2018 7.8 7.2 7.2 7.2 0.5 5,882
2019 4.8 4.9 4.7 — 14,952
2020 28.1 27.7 1.5 28,304
2021 76.7 32.1 38,903
Total incurred Loss and Loss Adjustment Expenses, net $ 122.1 $ 34.1 91,835
* Presented as unaudited required supplementary information Cumulative paid loss and LAE, net of reinsurance
December 31,
2015* 2016* 2017* 2018* 2019* 2020* 2021
Accident Year
2015 $ — $ — $ — $ — $ — $ — $ —
2016 1.2 1.8 1.9 1.8 1.8 1.8
2017 3.0 4.0 4.0 4.0 4.0
2018 5.3 5.7 5.7 5.7
2019 3.2 4.4 4.6
2020 17.1 26.8
2021 35.2
Total paid losses and LAE, net $ 78.1
Total unpaid loss and LAE reserves, net 44.0
Ceded unpaid loss and LAE $ 216.8
Gross unpaid loss and LAE $ 260.8
* Presented as unaudited required supplementary information Average annual percentage payout of incurred loss by age, net of reinsurance (unaudited supplementary information) The following table presents the average annual percentage payout of incurred losses by age, net of reinsurance as of December 31, 2021:
Years 1 2 3 4 5
Property and Casualty 81 % 12 % 3 % 3 % 2 % The reconciliation of the net incurred and paid loss information in the loss reserve rollforward table and development tables with respect to the 2021 and 2020 accident year is as follows (in millions):
2021 Current
Incurred Paid
Development table $ 76.7 $ 35.2
Unallocated loss adjustment expense 8.3 8.3
Other — 0.1
Rollforward table $ 85.0 $ 43.6
2020 Current
Incurred Paid
Development table $ 28.1 $ 17.1
Unallocated loss adjustment expense 2.2 (2.1 )
Loss and LAE of Spinnaker prior to the acquisition (5.0 ) 2.0
Rollforward table $ 25.3 $ 17.0

Reinsurance

Reinsurance12 Months Ended
Dec. 31, 2021
Insurance [Abstract]
Reinsurance11. Reinsurance The Company’s insurance company subsidiaries have entered into proportional and non-proportional reinsurance treaties, under which the insurance company subsidiaries have ceded some, but not all of, the liabilities to third-party reinsurers including, but not limited to, catastrophe exposure. Additionally, the reinsurance contracts are subject to contingent commission adjustments and loss participation features, which aligns our interests with those of our reinsurers. For the Company’s primary homeowners reinsurance treaty commencing in 2021, the Company secured proportional reinsurance from a diverse panel of nine third-party reinsurers with AM Best ratings of “A-” or better. A total of approximately 12% of the premium was retained either by Spinnaker or RHS, which aligns interests with third-party reinsurers. Two of the reinsurers, representing approximately one-third three-year As the Company is exposed to the risk of larger losses and natural catastrophe events, the Company obtained excess of loss (“XOL”) and per-risk reinsurance treaties. The XOL program provides protection from catastrophes that could impact a large number of insurance policies, which is expected to reduce the probability of losses exceeding the protection purchased to no more than 0.4 1:250 The per-risk program protects the Company from large, individual claims that are less likely to be associated with catastrophes, such as house fires. The Company purchased this coverage for the benefit of its retained shares for losses on single policies in excess of $0.5 million. Other Spinnaker reinsurance treaties are a mix of proportional and XOL in which approximately 80% to 100% of the risk is ceded. With all reinsurance programs, the Company is not relieved of its primary obligations to policyholders in the event of a default or the insolvency of its reinsurers. As a result, a credit exposure exists to the extent that any reinsurer fails to meet its obligations assumed in the reinsurance agreements. To mitigate this exposure to reinsurance insolvencies, the Company evaluates the financial condition of its reinsurers and, in certain circumstances, hold substantial collateral (in the form of funds withheld, qualified trusts, and letters of credit) as security under the reinsurance agreements. No amounts have been recorded in the years ended December 31, 2021 and 2020 for amounts anticipated to be uncollectible or for the anticipated failure of a reinsurer to meet its obligations under the contracts. The following tables reflect amounts affecting the consolidated balance sheets and statements of operations and comprehensive loss for ceded reinsurance as of and for the years ended December 31, 2021, and 2020 (in millions).
As of December 31,
2021 2020
Loss and LAE Unearned Loss and LAE Unearned
Direct $ 253.4 $ 246.6 $ 102.7 $ 143.7
Assumed 7.4 6.5 2.4 6.6
Gross 260.8 253.1 105.1 150.3
Ceded (216.8 ) (231.6 ) (92.1 ) (129.4 )
Net $ 44.0 $ 21.5 $ 13.0 $ 20.9
For the Year Ended December 31,
2021 2020
Written Earned Loss and LAE Written Earned Loss and LAE
Direct $ 474.0 $ 364.7 $ 498.5 $ 90.0 $ 88.7 $ 93.6
Assumed 3.3 9.8 16.9 26.1 9.3 13.3
Gross 477.3 374.5 515.4 116.1 98.0 106.9
Ceded (434.8 ) (335.6 ) (431.0 ) (78.4 ) (80.9 ) (81.6 )
Net $ 42.5 $ 38.9 $ 84.4 $ 37.7 $ 17.1 $ 25.3
Amounts recoverable from reinsurers are recognized in a manner consistent with the claims liabilities associated with the reinsurance placement and presented on the balance sheet as reinsurance recoverable on paid and unpaid losses and LAE. Such balance is presented in the table below (in millions).
December 31,
2021 2020
Reinsurance recoverable on paid loss $ 50.1 $ 42.0
Ceded unpaid loss and LAE 216.8 92.1
Total reinsurance recoverable $ 266.9 $ 134.1
To reduce credit exposure to reinsurance recoverable and prepaid reinsurance premium balances, the Company evaluates the financial condition of its reinsurers and, in certain circumstances holds collateral in the form of funds withheld and letters of credit as security under the terms of its reinsurance contracts. The Company has the following unsecured reinsurance recoverable and prepaid reinsurance premium balances from reinsurers as of December 31, 2021 (in millions):
December 31,
AM Best Reinsurer 2021 2020
A+ Everest Insurance Company $ 65.7 $ 4.2
A Validus Reinsurance (Switzerland) Ltd. 57.5 22.6
A+ Transatlantic Reinsurance Company 46.3 28.8
A+ Renaissance Reinsurance U.S. Inc. 28.9 5.5
A+ Munich Reinsurance America, Inc. 18.3 11.7
A Validus Reinsurance, Ltd. 9.6 46.9
A++ General Reinsurance Corporation 7.9 14.4
$ 234.2 $ 134.1
Other reinsurers 86.9 28.4
$ 321.1 $ 162.5

Geographical Breakdown of Gross

Geographical Breakdown of Gross Written Premium12 Months Ended
Dec. 31, 2021
Insurance [Abstract]
Geographical Breakdown of Gross Written Premium12. Geographical Breakdown of Gross Written Premium Gross written premium by state is as follows (in millions):
Year Ended December 31,
2021 2020
Amount % of GWP Amount % of GWP
State
Texas $ 139.2 29.2 % $ 43.9 37.8 %
California 85.2 17.9 % 10.4 9.0 %
Florida 26.8 5.6 % 7.3 6.3 %
Georgia 22.0 4.6 % 4.7 4.0 %
Illinois 19.1 4.0 % 4.9 4.2 %
Colorado 13.6 2.8 % 2.5 2.2 %
Missouri 13.0 2.7 % 3.4 2.9 %
Arizona 11.4 2.4 % 1.6 1.4 %
Ohio 10.5 2.2 % 3.0 2.6 %
New Jersey 10.4 2.2 % 3.4 2.9 %
Other 126.1 26.4 % 31.0 26.7 %
Total $ 477.3 100 % $ 116.1 100 %

Convertible Promissory Notes an

Convertible Promissory Notes and Derivative Liability12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]
Convertible Promissory Notes and Derivative Liability13. Convertible Promissory Notes and Derivative Liability In November 2020, and December 2020, Old Hippo issued convertible promissory notes totaling $377.5 million that mature in November 2023, and December 2023. In February 2021, Old Hippo issued an additional convertible promissory note of $7.0 million that mature in February 2024 for management services provided. The convertible promissory notes bore interest at 2.5% compounded semi-annually. If a conversion event had not occurred, the annual interest rate would have automatically increased by 2.5% up to 7.5% after certain periods specified in the Purchase Agreement. After 15 months from issuance, if a conversion event had not occurred, interest would accrue at 5% per annum, compounding semi-annually, unless the Company filed an S-1 or signed a letter of intent or definitive agreements with respect to a qualified private round or public issuer merger, in which case the interest rate would have increased to 5% to apply after 21 months from issuance, provided a conversion on event had not occurred. With a prior written consent from the investor, the Company had the ability to repay the convertible promissory notes and interest, in whole or in part, any time in cash before the maturity date without a prepayment penalty. The convertible promissory notes contained an embedded derivative. The fair value of the embedded derivatives upon issuance of the notes was $110.0 million. Interest expense was accreted on the convertible promissory notes between issuance and maturity dates with the expectation that principal and interest are likely to be settled in shares of common stock of the Company at a variable conversion price calculated at 90% of the price of the common stock of the Company. For additional information on derivative liability, refer to Note 5, Fair Value Measurement of these consolidated financial statements. In connection with the Closing of the Business Combination on August 2, 2021, the convertible promissory notes converted into 43,449,312 shares of the Company common stock. The carrying value of the convertible promissory notes at the conversion date was $304.0 million, net of $86.9 million of the deferred discount and issuance costs, and the carrying value of the derivative liability of $177.5 million after the final fair value adjustment on the conversion date were recorded to equity. A gain of $47.0 million was recognized upon the extinguishment of the debt and related derivative liability as the carrying amounts exceeded the value of the shares issued.

Public Warrants and Private Pla

Public Warrants and Private Placement Warrants12 Months Ended
Dec. 31, 2021
Equity [Abstract]
Public Warrants and Private Placement Warrants14. Public Warrants and Private Placement Warrants In November 2020, in connection with the RTPZ IPO, RTPZ issued 4,600,000 warrants (the “Public Warrants”) to purchase its Class A ordinary shares at $11.50 per share. Concurrently, RTPZ also issued 4,400,000 warrants (the “Private Placement Warrants” and, together with the Public Warrants, the “Public and Private Placement Warrants”) to its Sponsor to purchase its Class A ordinary shares at $11.50 per share. In connection with the Business Combination, the Public and Private Placement warrants converted, on a one-for-one basis, into warrants to purchase Company common stock. All of the Public and Private Placement Warrants were outstanding as of December 31, 2021. The Company classified the Public and Private Placement Warrants as other liabilities on its consolidated balance sheets as these instruments are precluded from being indexed to our own stock. In certain events outside of our control, the Public Warrant and Private Placement Warrant holders are entitled to receive cash, while in certain scenarios, the holders of the common stock are not entitled to receive cash or may receive less than 100% of any proceeds in cash, which precludes these instruments from being classified within equity. The Public and Private Placement Warrants were initially recorded at fair value on the date of the Business Combination and are subsequently adjusted to fair value at each subsequent reporting date. Changes in the fair value of these instruments are recognized within interest and other (income) expense, net in the Consolidated Statements of Operations and Comprehensive Loss. See Note 5, Fair Value Measurement for additional information on valuation.

Commitment and Contingencies

Commitment and Contingencies12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies 15. Commitments and Contingencies Operating Leases The Company leases office space under non-cancelable operating leases with various expiration dates through 2030. Rent expense, which is recognized on a straight-line basis over the lease term was $3.1 million and $2.8 million, during the years ended December 31, 2021 and 2020, respectively. At December 31, 2021, future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year, most of which pertain to real estate leases, are as follows (in millions):
Year ending December 31,
2022 $ 4.1
2023 5.1
2024 5.2
2025 5.2
2026 4.2
Thereafter 5.2
Total $ 29.0
During the year ended December 31, 2021, the Company extended a current lease and leased additional square footage in Texas resulting in additional future payments of approximately $8.0 million extending through 2026. Purchase Commitments As of December 31, 2021, the Company has total minimum purchase commitments, which must be made during the next three years, of $34.6 million. Litigation From time to time, the Company may become involved in litigation or other legal proceedings. The Company is routinely named in litigation involving claims from policyholders. Legal proceedings relating to claims are reserved in the normal course of business. The Company does not believe it is a party to any pending litigation or other legal proceedings that is likely to have a material adverse effect on our business, financial condition or results of operations. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. On November 19, 2021, Hippo and its Chief Executive Officer (“CEO”) were named in a civil action in San Francisco Superior Court brought by Eyal Navon. Mr. Navon brings six causes of action against Hippo’s CEO for breach of fiduciary duty, breach of contract, promissory estoppel, fraud, negligent misrepresentation, and constructive fraud surrounding a loan and call option entered into between Innovius Capital Canopus I, L.P. (“Innovius”) and Mr. Navon, as well as alleged promises made by Hippo’s CEO to Mr. Navon while Mr. Navon was an employee of Hippo. Mr. Navon brings two causes of action against Hippo — he repeats the fraud claim that is alleged against the CEO, and also alleges a claim for declaratory judgment, requesting that the Court declare that Mr. Navon properly revoked the call option he entered into with Innovius. On January 20, 2022, Hippo filed a demurrer, moving to dismiss the claims alleged in the complaint against Hippo. The Court sustained Hippo’s demurrer on March 8, 2022, dismissing all claims against Hippo without prejudice, and Mr. Navon did not contest the ruling

Convertible Preferred Stock

Convertible Preferred Stock12 Months Ended
Dec. 31, 2021
Temporary Equity Disclosure [Abstract]
Convertible Preferred Stock16. Convertible Preferred Stock Prior to December 31, 2020, Old Hippo issued Series A-1, A-2, B, C, D, and E convertible preferred stock. There were no new issuances of preferred stock during the year ended December 31, 2021, other than the exercise of preferred stock warrants noted below. Upon the Closing of the Business Combination, after the exercise of preferred stock warrants, all outstanding shares of Old Hippo’s preferred stock automatically converted into 323,232,349 shares of the Company’s common stock after giving effect to the Exchange Ratio. See Note 2, Business Combinations for additional information on the Business Combination. The following tables summarize the authorized, issued and outstanding convertible preferred stock of the Company (in millions, except share and per share data):
December 31, 2020
Issuance Price Authorized Shares Issued and Net Carrying Liquidation
Preferred A-1 Stock $ 0.56965 40,959,815 40,959,815 $ 3.4 $ 3.4
Preferred A-2 Stock 1.57432 48,790,097 48,590,772 10.9 11.0
Preferred B Stock 3.59757 48,326,627 48,326,627 24.9 25.0
Preferred C Stock 7.04471 69,101,902 69,101,895 56.1 70.0
Preferred C-1 Stock 11.74119 17,145,581 — — —
Preferred D Stock 15.16420 45,860,183 45,860,183 99.8 100.0
Preferred E Stock 19.66420 53,048,255 53,048,151 149.7 150.0
Total 323,232,460 305,887,443 $ 344.8 $ 359.4
Although the convertible preferred stock was not mandatorily or currently redeemable, a liquidation or winding up of the Company, a merger or consolidation, or a sale of substantially all the Company’s assets would have constituted a redemption event not solely within the Company’s control. Therefore, all shares of convertible preferred stock have been presented outside of permanent equity. Preferred Stock Warrant Liabilities In connection with obtaining a line of credit in March 2017, Old Hippo issued 28,662 warrants to purchase Series A-2 Preferred Stock. The warrants vested immediately and were exercisable up to March 13, 2027. In connection with the issuance of Series C Preferred Stock, in October 2018, Old Hippo issued to an investor 2,465,454 warrants to purchase Series C-1 Preferred Stock. The warrants are exercisable upon vesting. In April 2020, the warrants were fully vested. The warrants will expire at the earliest of a deemed liquidation event, stock sale, or October 25, 2022. In August 2021, prior to the Business Combination, the holders exercised their warrants for 2,494,116 shares of Old Hippo preferred stock. After giving effect to the Exchange Ratio upon the Closing of the Business Combination, the 2,494,116 shares of Old Hippo preferred stock converted into 17,344,906 shares of the Company’s common stock. Warrants to purchase shares of redeemable convertible preferred stock were classified as a liability as the underlying redeemable convertible preferred stock was not considered redeemable and would have required us to transfer assets upon exercise. The warrants were recorded at fair value upon issuance and are subject to remeasurement to fair value at each balance sheet date. The preferred stock warrant liability is remeasured at each reporting period end with changes in fair value upon remeasurement being recorded within interest and other (income) expense in the consolidated statements of operations and comprehensive loss. See Note 5, Fair Value Measurement for additional information on the fair value of preferred stock warrant liability. Prior to the Business Combination on August 2, 2021, the aggregate fair value of the preferred stock warrant liability was determined based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company used the Black-Scholes-Merton option-pricing model, which incorporates assumptions and estimates, to value the preferred stock warrants. Estimates and assumptions impacting the fair value measurement include the fair value per share of the underlying shares of the Company’s Series A-2 and Series C-1 convertible preferred stock, risk free interest rate, expected dividend yield, expected volatility of the price of the underlying preferred stock, and an expected term of the preferred stock warrants. The most significant assumption impacting the fair value of the preferred stock warrants is the fair value of the Series A-2 and C-1 Preferred Stock as of each remeasurement date. The Company determined the fair value per share of the underlying preferred stock by taking into consideration the most recent sales of its preferred stock, results obtained from third-party valuations, and additional factors that were deemed relevant. The Company used the fair value of its common share per the Business Combination to mark to market the value the warrants upon exercise immediately prior to the Business Combination. The following assumptions were used in determining fair value of the convertible preferred stock warrant liabilities:
December 31, 2020
Fair value of Series A-2 Preferred Stock $18.25
Fair value of Series C-1 Preferred Stock $20.09
Exercise price A-2 Preferred Stock $1.57
Exercise price C-1 Preferred Stock $11.74
Expected term (in years) 1.8-6.2
Expected volatility 29.0%-40.7%
Risk-free interest rate 0.1%-0.5%
Expected dividend yield —%

Stockholders' Equity

Stockholders' Equity12 Months Ended
Dec. 31, 2021
Equity [Abstract]
Stockholders' Equity17. Stockholders’ Equity Common Stock On August 2, 2021, the Company’s common stock and warrants began trading on the New York Stock Exchange (“NYSE”) under the ticker symbols “HIPO” and “HIPO.WS”, respectively. Pursuant to Certificate of Incorporation, the Company is authorized to issue 2 billion shares of common stock, with a par value of $0.0001 per share. Each share of common stock is entitled to one vote. The holders of the common stock are also entitled to receive dividends whenever funds are legally available and when declared by the board of directors. No dividends have been declared or paid since inception. As described in Note 2, Business Combinations, the Company issued 495,242,606 shares of the Company’s common stock in the Business Combination. The below table shows the conversion of Old Hippo’s outstanding instruments on the date of the Closing that were converted, exercised, or issued as stock consideration.
Description Balance Exchange Post Conversion
Old Hippo common stock 15,940,914 6.95433 110,858,374
Old Hippo convertible preferred stock 43,985,178 6.95433 305,887,443
Old Hippo convertible promissory notes 6,247,807 6.95433 43,449,312
Old Hippo preferred stock warrants 2,494,116 6.95433 17,344,906
Old Hippo common stock warrants 3,911,610 6.95433 27,202,571
504,742,606
Less: Repurchase of common stock (9,500,000 )
Net Old Hippo shares consideration 495,242,606
In connection with the Closing of the Business Combination on August 2, 2021, the Company issued 55,000,000 shares of Common Stock in the PIPE Investment to certain qualified institutional buyers and accredited investors that agreed to purchase such shares, for aggregate consideration of $550.0 million. Refer to Note 2, Business Combinations for more information. Common Stock Warrants In December 2017, the Company issued 4,738,051 warrants for common stock to one of its investors. The warrants were subject to performance vesting and are accounted for as stock-based compensation expense when it is probable that the awards will vest. In October 2018 in connection with the issuance of Series C Preferred Stock, these warrants were amended to eliminate the performance vesting conditions and replace it with a time-based condition. Up until the amended date, none of the warrants were probable of being vested and no expense had been recorded. The fair value of the warrant upon the amendment was allocated to additional paid-in capital as part of the issuance of Series C Preferred Stock, net of issuance costs and preferred stock warrants. In February 2018, the Company issued 4,738,051 warrants for common stock to one of its investors. The warrants are subject to performance vesting and is accounted for as stock-based compensation expense when it is probable that the awards will vest. In December 2020, these warrants were amended, and 62,500 warrants were vested. As a result of the modification, the Company recorded a stock-based compensation charge of $1.0 million to reflect the acceleration of 62,500 shares that would otherwise not have vested. Up until the amended date, none of the remaining warrants were probable of being vested and no expense had been recorded. On August 2, 2021, 3,911,610 warrants were exercised for shares of Old Hippo common stock and the remaining 5,564,492 warrants were cancelled. After giving effect to the Exchange Ratio and upon the Closing of the Business Combination, the exercised warrants converted into 27,202,571 shares of Hippo Holdings Inc. common stock. The following common stock warrants were outstanding as of December 31, 2020:
Issue Date Exercise Price Number of Expiration Date Outstanding as of
December 11, 2017 $ 0.01 4,738,051 December 31, 2022 4,738,051
February 19, 2018 $ 0.01 4,738,051 August 19, 2022 4,738,051 Stock-Based Compensation Plans 2019 Stock Option and Grant Plan Adopted in 2019, the 2019 Stock Option and Grant Plan (“the 2019 Stock Plan”) provides for the direct award or sale of shares, the grant of options to purchase shares, and the grant of restricted stock units (“RSUs”) to employees, consultants, and outside directors of the Company. Stock options under the plan may be either incentive stock options (“ISOs”) or non-qualified stock options (“NSOs”), with an exercise price of not less than 100% of fair market value on the grant date, with a term less than or equal to ten years. The vesting period of each option and RSU shall be as determined by a committee of the Company’s board of directors but is generally over four years. Upon the closing of the Business Combination, the remaining unallocated share reserve under the 2019 Plan was cancelled and no new awards will be granted under such plan. Awards outstanding under the 2019 Plan were assumed by the Company upon the Closing and continue to be governed by the terms of the 2019 Plan. 2021 Incentive Award Plan In connection with the Closing of the Business Combination, on August 2, 2021, the Company adopted the 2021 Incentive Award Plan (the “2021 Plan”), which authorized for issuance 78,000,000 shares of common stock. The 2021 Plan provides for the issuance of a variety of stock-based compensation awards, including stock options, stock appreciation rights (“SARs”), restricted stock awards, restricted stock unit awards, performance bonus awards, performance stock unit awards, dividend equivalents, or other stock or cash-based awards. The vesting period of each option and award shall be as determined by a committee of the Company’s board of directors but is generally over two Restricted Share Awards In 2016 and 2015, the Company granted RSAs which were subject to service-based vesting conditions to certain employees, with a vesting period of three Stock Options The following table summarizes option activity under the plans:
Options Outstanding Weighted-Average Contract Term Aggregate
Number of Weighted
Outstanding as of January 1, 2021 72,205,242 $ 0.70 8.90 $ 108.9
Granted 9,686,589 4.81
Exercised (22,801,742 ) 0.33
Cancelled/Expired (11,551,163 ) 2.05
Outstanding as of December 31, 2021 47,538,926 $ 1.39 8.30 $ 84.8
Vested and exercisable as of December 31, 2021 15,919,802 $ 0.81 7.88 $ 32.9
The aggregate intrinsic value of options exercised during the years ended December 31, 2021 and 2020 was $41.6 million and $15.4 million, respectively, and is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of the exercise date. The weighted-average grant date fair value of options granted during the years ended December 31, 2021 and 2020 was $2.16 and $0.70 per share, respectively. Total unrecognized compensation cost of $28.9 million as of December 31, 2021 is expected to be recognized over a weighted-average period of 2.4 years. Valuation Assumptions of Stock Options The fair value of granted stock options was estimated as of the date of grant using the Black-Scholes-Merton option-pricing model, based on the following inputs:
December 31,
2021 2020
Expected term (in years) 5.4 - 6.5 5.6 - 6.1
Expected volatility 29.6% - 30.1% 22.6% - 29.9%
Risk-free interest rate 0.6% - 1.4% 0.3% - 1.6%
Expected dividend yield — % — % Expected Term Expected Volatility Risk-Free Interest Rate Expected Dividend Yield Fair value of common stock Early Exercises of Stock Options In 2019, certain employees early exercised stock options in exchange for promissory notes. The Company accounted for the promissory notes as nonrecourse in their entirety because the promissory notes are not aligned with a corresponding percentage of the underlying shares. The early exercises of options were not deemed to be substantive exercises for accounting purposes. Each of these loans and all interest accrued thereon was forgiven upon the consummation of the Business Combination. The forgiveness of the promissory notes were deemed to be exercises of the 9.4 million stock options with an intrinsic value of $94.0 million on the date of forgiveness. The Company accounted for the forgiveness as a modification to the options granted and incurred an incremental stock-based compensation charge of $2.1 million during the year. The related number of unvested shares subject to repurchase as of December 31, 2021 was 2,948,602. In 2020 and 2021, certain employees early exercised stock option with cash. On December 31, 2021 and December 31, 2020, the Company had $2.2 million and $2.5 million, respectively, recorded in accrued expenses and other liabilities related to early exercises of the stock options, and the related number of unvested shares subject to repurchase was 2,060,221 and 2,399,245, respectively. Restricted Stock Units In August 2021, the Company began granting RSUs under the 2021 Incentive Award Plan. The RSUs granted to employees are measured based on the grant-date fair value. In general, the Company’s RSUs vest over a service period of two
Number of Weighted Average
Unvested and outstanding as of December 31, 2020 — $ —
Granted 28,233,515 3.91
Vested (187,125 ) 4.00
Canceled and forfeited (875,460 ) 3.97
Unvested and outstanding as of December 31, 2021 27,170,930 3.91
Total unrecognized compensation cost related to unvested RSUs is $106.3 million as of December 31, 2021, and it is expected to be recognized over a weighted-average period of 3.3 years. Performance Restricted Stock Units In August 2021 and November 2021, the Company granted performance-based restricted stock units (PRSUs), which become eligible to vest subject to the achievement of specified performance conditions within 18-months of the grant date. Compensation expense for PRSUs reflects the estimated probability that performance conditions will be met. As of December 31, 2021, 1,768,419 PRSUs have been granted with a weighted-average grant date fair value of $5.21, all of which were unvested at period end. The Company recognized $3.0 million of stock-based compensation expense associated with the PRSUs for the year ended December 31, 2021. Total unrecognized compensation cost related to unvested PRSUs is $6.2 million as of December 31, 2021, and it is expected to be recognized within the next nine months. 2021 Employee Stock Purchase Plan In connection with the closing of the Business Combination, the Company adopted the 2021 Employee Stock Purchase Plan (the “2021 ESPP”), which authorized 13,000,000 shares of common stock for issuance. The 2021 ESPP became effective on October 25,2021. The 2021 ESPP is designed to allow eligible employees of the Company to purchase shares of our common stock with their accumulated payroll deductions at a price equal to 85% of the lesser of the fair market value on the first business day of the offering period or on the designated purchase date of the offering period up to $25,000 during the calendar year. The ESPP offers a six-month look-back feature as well as an automatic reset feature that provides for an offering period to be reset to a new lower-priced offering if the offering price of the new offering period is less than that of the current offering period. No shares have been issued under the 2021 ESPP as of December 31, 2021. In addition, the number of shares available for issuance under the 2021 ESPP will be annually increased on January 1 of each calendar year beginning in 2021 and ending in 2031, by an amount equal to the lesser of (i) one percent of the shares outstanding (on a converted basis) on the last day of the immediately preceding fiscal year and (ii) such number of shares as may be determined by the board of directors. Stock-Based Compensation The company recorded a modification charge of $2.6 million in 2021 relating to the cancellation of options granted to an executive officer of the Company without replacement. Total stock-based compensation expense, classified in the accompanying consolidated statements of operations and comprehensive loss was as follows (in millions):
Year Ended
2021 2020
Losses and loss adjustment expenses $ 0.6 $ 0.1
Insurance related expenses 1.1 0.2
Technology and development 6.8 2.4
Sales and marketing 5.0 2.1
General and administrative 10.8 12.4
Total stock-based compensation expense $ 24.3 $ 17.2

Income Taxes

Income Taxes12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes18. Income Taxes Income tax expense The Company and its U.S. subsidiaries file a consolidated federal income tax return. Tax liabilities and benefits realized by the consolidated group are allocated on a separate return basis. The Company’s international subsidiaries file various income tax returns in their respective jurisdictions. Income (loss) before tax consists of the following (in millions)
Year Ended
2021 2020
United States $ (371.3 ) $ (143.2 )
Foreign 0.6 —
Total $ (370.7 ) $ (143.2 )
The components of the total provision for income taxes are as follows (in millions):
Year Ended
2021 2020
Loss before income taxes $ (370.7 ) $ (143.2 )
Income tax benefit from statutory rate (77.9 ) (30.1 )
Effect of:
Meals, entertainment & parking 0.1 0.1
Deferred compensation 27.8 8.1
Transaction costs 0.1 0.1
State taxes (7.2 ) (1.1 )
Non-deductible interest 5.5 —
Increase in valuation allowance 53.4 19.9
Other (1.1 ) 1.2
Income taxes expense (benefit) $ 0.7 $ (1.8 )
The components of the provision for income taxes are as follows (in millions):
Year Ended
2021 2020
Income tax applicable to:
Current
State $ 0.2 $ 0.2
Foreign 0.5 —
Total current provision $ 0.7 $ 0.2
Deferred
Federal $ — $ (1.9 )
State — (0.1 )
Total deferred provision $ — $ (2.0 )
Total provision for income taxes $ 0.7 $ (1.8 )
Deferred tax Significant components of the Company’s deferred tax assets and liabilities are as follows (in millions):
As of December 31,
2021 2020
Deferred tax assets:
Net operating loss carryforward $ 87.4 $ 35.4
Provision for commission — 5.4
Intangible assets 3.5 3.1
Research and development credit 2.4 0.2
Deferred compensation 2.2 0.3
Unearned premium reserve 1.2 1.0
Loss reserve discount 0.6 0.1
Unrealized losses 0.2 —
Deferred rent 0.2 0.1
Other accruals 3.5 0.9
Interest expense limitation — 0.6
Total deferred tax assets $ 101.2 $ 47.1
Valuation allowance (93.2 ) (39.6 )
Total deferred income tax assets $ 8.0 $ 7.5
Deferred tax liabilities
Property and equipment $ 0.3 $ 0.1
Provision for commission 0.2 —
Capitalized software 6.1 3.3
Acquired intangibles 0.2 0.5
Unrealized gains — 0.4
Spinnaker stepped-up adjustment — 2.9
Deferred acquisition costs 0.9 0.3
Other 0.3 —
Total deferred tax liabilities $ 8.0 $ 7.5
Deferred income tax assets, net $ — $ —
Valuation Allowance Recognition of deferred tax assets is appropriate when realization of these assets is more likely than not. Based upon the weight of all available evidence, with primary focus on the Company’s history of recent losses, the Company has concluded that it is not more likely than not that the recorded deferred tax assets will be realized. As a result, the Company has recorded a full valuation allowance against its net deferred tax assets recorded as of December 31, 2021 and 2020. Unrecognized Tax Benefits The Company recognizes the tax benefit of tax positions taken in the consolidated financial statements only when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the tax technical merits of the position. The tax benefit of a position that meets this standard is measured at the largest amount of benefit that is expected to be more likely than not to be realized on settlement. A liability is established for the difference between the tax benefit of positions taken in a tax return and the tax benefit of tax positions recognized in the consolidated financial statements. The Company recognized $1.1 million and $0.0 million unrecognized tax benefit as of December 31, 2021 and 2020, respectively, fully offset by a valuation allowance. No interest or penalties were incurred during the years ended December 31, 2021 or 2020. As of December 31, 2021, there were no material positions for which the Company believes it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months. Net Operating Losses As of December 31, 2021, the Company has U.S. federal and state net operating loss (“NOL”) carryforwards of $372.9 million and $136.3 million, respectively. The Company has $53.3 million of Dual Consolidating Losses in RHS, a 953(d) company. The provisions of the Tax Cuts and Jobs Act of 2017 eliminated the 20-year carryforward period and made it indefinite for federal NOLs generated in tax years after December 31, 2017. For such amounts generated prior to 2018, the 20-year carryforward periods continue to apply. In general, a corporation’s ability to utilize its NOL carryforwards may be subject to a substantial limitation due to ownership changes that may have occurred or that could occur in the future, as required by section 382 of the Internal Revenue Code of 1986 (the “Code”), as amended, as well as similar state provisions. These ownership changes may limit the amount of NOL and research & development (“R&D”) credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change,” as defined by section 382 of the Code, results from transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percent of the capital (as defined) of a company by certain stockholders or public groups. The Company has performed a section 382 analysis and experienced two historical ownership changes in 2016 and 2018, and the Company’s tax attributes subject to such limitations under section 382 have been considered. Components of the NOL carryforwards are as follows (in millions):
20-year Carryforward Indefinite Total
U.S. Federal $ 62.4 $ 310.5 $ 372.9
U.S. State 136.3 — 136.3
Balance as of December 31, 2021 $ 198.7 $ 310.5 $ 509.2
Tax credit carryforwards As of December 31, 2021, the Company has U.S. federal R&D credit carryforwards of $2.1 million, which have a 20-year carryforward and expire 2040-2041, as well as state R&D credit carryforwards of $1.8 million, which have an indefinite carryforward period. Taxing Authority Audits The Company’s income tax returns are subject to federal and state tax examinations. There are no pending tax examinations as of December 31, 2021. For U.S. federal purposes, the Company is open to examination for the 2018 – 2020 tax years and for state purposes, the Company is open for from 2017 – 2020 tax years. No interest or penalties were incurred during the years ended December 31, 2021 and 2020.

Net Loss Per Share Attributable

Net Loss Per Share Attributable to Common Stockholders12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]
Net Loss Per Share Attributable to Common Stockholders19. Net Loss Per Share Attributable to Common Stockholders Net loss per share attributable to common stockholders was computed as follows:
Year Ended December 31,
2021 2020
Numerator:
Net loss attributable to Hippo – basic and diluted (in millions) $ (371.4 ) $ (141.5 )
Denominator:
Weighted-average shares used in computing net loss per share attributable to Hippo — basic and diluted 272,168,933 86,897,893
Net loss per share attributable to Hippo — basic and diluted $ (1.36 ) $ (1.63 )
Potential dilutive securities that were not included in the diluted loss per share calculations because they would be anti-dilutive were as follows:
December 31,
2021 2020
Convertible preferred stock (on an as if converted basis) — 275,009,550
Outstanding options 47,538,926 58,168,262
Warrants to purchase common shares 9,000,000 33,127,646
Warrants to purchase preferred shares — 17,344,906
Common stock subject to repurchase 5,008,767 9,499,253
RSU and PRSUs 28,939,349 —
Convertible notes — 15,146,260
Total 90,487,042 408,295,877

Acquisitions

Acquisitions12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Acquisitions20. Acquisitions Spinnaker Insurance Company Acquisition On August 31, 2020, the Company acquired 100% of all issued and outstanding share capital of Spinnaker, a privately-held entity that is an Illinois domiciled property and casualty insurance carrier licensed in 50 states plus the District of Columbia in exchange for cash consideration. The acquisition has been accounted for as a business combination and allows the Company to vertically integrate an insurance carrier and enhance the Company’s control over unit economics and future carrier capacity. There were no other components of purchase consideration other than cash payments. The following table summarizes the closing date fair value of the consideration transferred, reflecting the measurement period adjustments recorded at the acquisition date (in millions).
Fair value of
Cash paid $ 95.6
Less: consideration for settlement of pre-existing liability due to Spinnaker (5.1 )
Total value of consideration transferred $ 90.5
The Company recognized $0.8 million of acquisition transaction costs as general and administrative expense in the Company’s consolidated statements of operations and comprehensive loss during the year ended December 31, 2020. The following table presents the allocation of the purchase price for Spinnaker, measured as of the acquisition date:(in millions):
Acquisition-Date Estimated Useful Life
Tangible assets acquired and (liabilities) assumed:
Investments:
Fixed maturities available-for-sale, at fair value $ 45.7
Short term investments 5.0
Total investments $ 50.7
Cash and cash equivalents 16.9
Restricted cash 2.1
Accounts receivable, net 18.3
Reinsurance recoverable on paid and unpaid losses and LAE 116.3
Ceding commissions receivable 18.7
Prepaid reinsurance premiums 131.9
Other assets 0.6
Accrued expenses and other liabilities (6.6 )
Loss and loss adjustment expense reserves (93.3 )
Unearned premiums (132.1 )
Reinsurance premium payable (76.1 )
Net tangible assets acquired $ 47.4
Intangible assets acquired
Agency relationships 3.4 8 years
VOBA 0.1 2 years
State licenses 7.1 Indefinite
Goodwill 32.5
Total purchase price $ 90.5 Goodwill represents the excess of the Purchase Consideration over the fair value of the net tangible and intangible assets acquired and has been allocated to the Company’s one operating segment. Goodwill is primarily attributable to expected post-acquisition synergies from integrating Spinnaker’s property and casualty insurance carrier business into the Company’s homeowner’s insurance business to improve the Company’s speed to market for new products and offers incremental revenue opportunities from Spinnaker’s existing programs. The goodwill recorded is not deductible for income tax purposes. The results of operations of Spinnaker have been included in the Company’s consolidated statements of operations from the acquisition date. The following unaudited pro forma financial information gives effect to the acquisition of Spinnaker as if it were consummated on January 1, 2019, including pro forma adjustments related to the valuation and allocation of the purchase price, primarily amortization of acquired intangible assets; stock-based compensation expense; alignment of accounting policies; to Spinnaker’s historical financial statements; and direct transaction costs reflected in the historical financial statements. This data is presented for informational purposes only and is not intended to represent or be indicative of the results of operations that would have been reported had the acquisition occurred on the assumed date. It should not be taken as representative of future results of operations of the Company (in millions):
Year Ended
Pro forma revenue $ 54.1
Pro forma net loss $ (136.6 ) Agency Acquisition On December 31, 2020, the Company acquired an insurance agency aggregator for purchase consideration of $24.4 million, consisting primarily of cash and the issuance of a convertible promissory note of $12.5 million. See Note 13 for additional information of the convertible promissory note. The acquisition allows the Company to continue to expand its customer base. Of the total purchase consideration, $11.0 million has been recorded to acquired intangible assets, $13.9 million to goodwill, and $0.5 million of net liabilities, primarily working capital. The Company incurred $0.1 million in acquisition related costs, which were recognized as general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income (loss). The intangible assets acquired primarily relate to carrier and agency relationships and have a useful life of eight years. The Company valued the intangibles using income-based approaches including the excess earnings and relief from royalty method as well as the with and without approach. The goodwill represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including expected future synergies. The goodwill recognized is expected to be deductible for tax purposes. Other Acquisition On August 31, 2021, the Company acquired a software development and engineering consulting firm for the aggregate purchase price of $7.8 million, consisting of cash and equity. The acquisition has been accounted for as a business combination under ASC 805 and was made to further strengthen the Company’s technology and development capabilities. Of the total purchase consideration, $5.3 million has been recorded to goodwill, $0.6 million to acquired intangible assets, and $2.0 million to net working capital. The Company incurred $0.4 million in acquisition related costs which were recognized as general and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income (loss). Included in the arrangement is $9.2 million in equity instruments granted to certain employees that have vesting conditions contingent on certain performance milestones and are accounted for as equity-settled stock- based compensation transactions. These will be recorded as post-combination compensation expense over a service period of up to 18 months, when the performance milestones become probable, if not forfeited by the employees.

Related Party

Related Party12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]
Related Party21. Related Party In December 2020, the Company acquired First Connect Insurance Services, a wholesale P&C insurance provider for independent agents interested in gaining access to the advanced quoting platforms that are provided by insurtech companies. One of our executive officers, Richard McCathron, was the President and Chief Executive Officer of First Connect Insurance services from 2012 to 2017 and owned greater than 10% of First Connect Insurance Services prior to the time of the transaction. The Company paid Mr. McCathron $6.4 million for his equity interests in First Connect Insurance Services prior to the transaction. The Company also entered into an agency aggregator agreement with First Connect. The Company incurred a total of $9.9 million of expenses during the year ended December 31, 2020 related to this agreement. In October 2020, Hippo entered into a Master Services Agreement with Forecast Labs, LLC, which operates a startup studio for Comcast Ventures, LP, which provides accelerator and incubator services to select portfolio companies of Comcast Ventures. Comcast Ventures and its affiliated funds are beneficial owners of more than 5% of outstanding Hippo capital stock. Hippo incurred a total of $2.2 million of expenses during the year ended December 31, 2020 related to this agreement. As of December 31, 2021 this entity is no longer a related party. In February 2020, Comcast Neptune, LLC assumed the Master Services Agreement between Loop Labs, Inc. d/b/a Notion and the Company. Comcast Neptune, LLC and its affiliated funds is a beneficial owner of more than 5% of our outstanding capital stock. The Company incurred a total of $3.2 million of expenses during the year ended December 31, 2020 related to this services agreement. As of December 31, 2021 this entity is no longer a related party. In February 2019, the Company entered into an Accelerate Agreement with Comcast Ventures, LLC. Comcast Ventures, LLC and its affiliated funds are beneficial owners of more than 5% of our outstanding capital stock. The Company incurred over $120,000 of expenses during the year ended December 31, 2020 related to this services agreement. As of December 31, 2021 this entity is no longer a related party.

Statutory Financial Information

Statutory Financial Information12 Months Ended
Dec. 31, 2021
Insurance [Abstract]
Statutory Financial Information22. Statutory Financial Information The Company’s insurance subsidiaries are subject to insurance laws and regulations in the jurisdictions in which they operate. U.S. state insurance laws and regulations prescribe accounting practices for determining statutory net income and capital and surplus for insurance companies. In addition, state regulators may permit statutory accounting practices (SAP) that differ from prescribed practices. The principal differences between SAP and GAAP as they relate to the financial statements of the Company’s insurance subsidiaries are (a) policy acquisition costs are expensed as incurred under SAP, whereas they are deferred and amortized under GAAP, (b) certain assets are not admitted for purposes of determining surplus under SAP, (c) investments in fixed income securities are carried at amortized cost under SAP whereas such securities are carried at fair value under GAAP , and (d) the criteria for recognizing net DTAs and the methodologies used to determine such amounts are different under SAP and GAAP. Risk-Based Capital (“RBC”) requirements promulgated by the National Association of Insurance Commissioners require property/casualty insurers to maintain minimum capitalization levels determined based on formulas incorporating various business risks of the insurance subsidiaries. As of December 31, 2021 and 2020, the company’s capital and surplus exceeds its authorized control level. The statutory net income and statutory capital and surplus of the Company’s insurance subsidiaries in accordance with regulatory accounting practices were as follows (in millions):
Statutory Net Income Capital Surplus
2021 2020 2021 2020
Statutory net income
U.S. insurance subsidiaries $ (0.5 ) $ 6.6 $ 131.8 $ 69.6
International insurance subsidiary (54.7 ) (16.7 ) 7.7 22.6
Statutory capital and surplus $ (55.2 ) $ (10.1 ) $ 139.5 $ 92.2

Dividend Restrictions

Dividend Restrictions12 Months Ended
Dec. 31, 2021
Insurance [Abstract]
Dividend Restrictions23. Dividend Restrictions Spinnaker Insurance Company The maximum amount of dividends that can be paid by an Illinois-domiciled property and casualty insurance company without prior approval of the Illinois Insurance Commissioner in a 12 month period, measured retrospectively from the date of payment, is the greater of (1) ten percent (10%) of surplus as regards policyholders as of December 31 of the preceding year; or (2) the net income of such insurer as of December 31 of the preceding year, provided unassigned funds (surplus) exceeds zero following payment of such dividends. At December 31, 2021, $11.7 million was available for the payment of dividends without prior approval of the Illinois Department of Insurance. Spinnaker Specialty Insurance Company (“SSIC”) and Mainsail Insurance Company (“MIC”) The maximum amount of dividends that can be paid by a Texas-domiciled property and casualty insurance company without prior approval of the Texas Insurance Commissioner in a 12 month period, measured retrospectively from the date of payment, is the greater of (1) ten percent (10%) of surplus as regards policyholders as of December 31, 2021; or (2) the net income of such insurer as of December 31, 2021. At December 31, 2021, surplus as regards policyholders for SSIC and MIC was $47.0 million and $10.0 million respectively. Net income was nil for SSIC and MIC for the year ended December 31, 2021. RH Solutions Insurance (Cayman) Ltd. The Company’s insurance subsidiary in the Cayman Islands, RHS, is regulated by the Cayman Islands Monetary Authority (“CIMA”). CIMA must be given advanced notice of any dividend payments. At December 31, 2021 and 2020, approximately $5.4 million and $28.0 million, respectively, of excess capital were available for the payment of dividends contingent on receiving the prior approval of CIMA. Dividend distributions to RH Solutions’ stakeholders are recognized in the period in which the dividends are declared by the Directors. In accordance with the terms of the Insurance (Capital and Solvency) (Class B, C, and D Insurers) Regulations, 2012, as a Class B(iii) issuer under the Law, RH Solutions is required to maintain the Prescribed Capital Requirement (“PCR”) of $2.3 million, which is based on net earned premium during the fiscal year.

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and ConsolidationBasis of Presentation and Consolidation The consolidated financial statements and accompanying notes of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries where it has controlling financial interests, and any variable interest entities for which the Company is deemed to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. As a result of the Business Combination, which was completed on August 2, 2021, prior period share and per share amounts presented in the accompanying Consolidated Financial Statements and these related notes have been converted in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. Refer to Note 2 for additional information.
Use of EstimatesUse of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, loss and loss adjustment expense (“LAE”) reserves, provision for commission slide and cancellations, reinsurance recoverable on paid and unpaid losses and LAE, the fair values of investments, common stock, stock-based awards, warrant liabilities, contingent consideration liabilities, embedded derivative liabilities, acquired intangible assets and goodwill, deferred tax assets and uncertain tax positions, and revenue recognition. The Company evaluates these estimates on an ongoing basis. These estimates are informed by experience and other assumptions that the Company believes are reasonable under the circumstances. Actual results may differ significantly from these estimates.
Business CombinationsBusiness Combinations The Company accounts for acquisitions of entities or asset groups that qualify as businesses using the acquisition method of accounting in accordance with ASC 805, Business Combinations. Purchase consideration is allocated to the tangible and intangible assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date, which are measured in accordance with the principles outlined in ASC 820, Fair Value Measurement. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature. The excess of the total purchase consideration over the fair value of the identified net assets acquired is recognized as goodwill. The results of the acquired businesses are included in the results of operations beginning from the date of acquisition. Acquisition-related costs are expensed as incurred. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the allocation of purchase consideration and to the fair values of assets acquired and liabilities assumed to the extent that additional information becomes available. After this period, any subsequent adjustments are recorded in the Consolidated Statements of Operations and Comprehensive Income (Loss). The Business Combination on August 2, 2021 was accounted for as a reverse recapitalization. See Note 2 for additional information.
Segment InformationSegment Information The Company’s chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, the Company has a single operating and reportable segment structure. Primarily all the Company’s long-lived assets are in the United States.
Cash, Cash Equivalents, and Restricted CashCash, Cash Equivalents, and Restricted Cash Cash consists of cash on deposit. The Company considers all highly liquid securities readily convertible to cash, that mature within three months or less from the original date of purchase to be cash equivalents. The Company’s restricted cash relates to cash restricted to support issued letter of credits and collateral to insurers. The Company’s restricted cash also includes fiduciary assets.
Fiduciary Assets and LiabilitiesFiduciary Assets and Liabilities In its capacity as an insurance agent and broker, the Company collects premiums from insureds and, after deducting its commission, remits the premiums to the respective insurers. The Company also processes claims on behalf of insurers and collects claims from insurers on behalf of insureds. Premiums collected from insureds but not yet remitted to insurance companies and claims collected from insurance companies but not yet remitted to insureds are fiduciary assets. Fiduciary assets are recorded within restricted cash in the Company’s consolidated balance sheets. Unremitted insurance premiums and claims held in a fiduciary capacity and the obligation to remit these funds is recorded as fiduciary liabilities within accrued expenses and other liabilities in the consolidated balance sheets.
InvestmentsInvestments The Company has categorized its investment portfolio as available-for-sale and has reported the portfolio at fair value, adjusted for other-than-temporary declines in fair value, with unrealized gains and losses, net of tax, reported as an amount in other comprehensive loss. Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Amortization of premium and accretion of discount are computed using the scientific method (constant yield to worst). Realized gains and losses are determined using specific identification method and included in the determination of income. Net investment income includes interest and dividend income, amortization and accretion of investment premiums and discounts, respectively, realized gains and losses on sales of securities, and other-than-temporary declines in the fair value of securities, if any. The Company regularly reviews all the investments for other-than-temporary declines in fair value. The review includes the consideration of the cause of the impairment, including the creditworthiness of the security issuers, the number of securities in an unrealized loss position, the severity and duration of the unrealized losses, whether the Company has the intent to sell the securities, and whether it is more likely than not the Company will be required to sell the securities before the recovery of their amortized cost basis. When the Company determines that the decline in fair value of an investment is below the accounting basis and the decline is other-than-temporary, it reduces the carrying value of the security and records a loss for the amount of such decline in net investment income in the consolidated statements of operations and comprehensive loss.
Fair Value of Financial InstrumentsFair Value of Financial Instruments The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions, and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
• Level 1 — Quoted prices in active markets for identical assets or liabilities that are publicly accessible at the measurement date.
• Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
• Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The Company’s financial instruments include cash equivalents, restricted cash, fixed maturities, short-term investments, accounts receivable, accounts payable, assumed and ceded reinsurance contracts, preferred stock warrants and public and private warrants. Cash equivalents and restricted cash are principally stated at amortized cost, which approximates their fair value. Short-term investments and preferred stock warrants are reported at fair value. The recorded carrying amount of accounts receivable, assumed and ceded reinsurance contracts, and accounts payable approximates their fair value due to their short-term nature.
Concentration of Credit RisksConcentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk are primarily comprised of cash and cash equivalents, short-term investments, fixed maturities available-for-sale, and reinsurance recoverables. Cash deposits may, at times, exceed amounts insured by the Federal Deposit Insurance Corporation and the Securities Investor Protection Corporation. However, its exposure to credit risk in the event of default by the financial institutions is limited to the extent of amounts recorded on the balance sheet. The Company performs evaluations of the relative credit standing of these financial institutions to limit the amount of credit exposure. The Company has not experienced any losses on its deposits of cash and cash equivalents to date. The Company limits its exposure to credit losses by investing in money market funds, U.S. government securities, or securities with average credit quality of AA- or better. Premium receivables are a mix of receivables due from policyholders, agents, and program administrators. The Company has no significant off-balance-sheet concentration of credit risks such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. The Company enters into quota share and excess of loss contracts which may be susceptible to catastrophe exposure. The ceding of insurance does not legally discharge the Company from its primary liability for the full amount of the policy coverage, and therefore the Company will be required to pay the loss and bear collection risk if the reinsurer fails to meet its obligations under the reinsurance agreement. To minimize exposure to significant losses from reinsurance insolvencies, the Company evaluates the financial condition of its reinsurers, monitors concentrations of credit risk and, in certain circumstances, holds substantial collateral (in the form of funds withheld and letters of credit) as security under the reinsurance agreements.
Accounts ReceivableAccounts Receivable Accounts receivable consists of premium receivables and commission receivables and is reported net of an allowance for premium amounts or estimated uncollectible commission. Such allowance is based upon an ongoing review of amounts outstanding, length of collection periods, the creditworthiness of the insured and other relevant factors. Amounts deemed to be uncollectible are written off against the allowance. As of December 31, 2021 and 2020, the Company has an allowance of $0.4 million and $0.5 million, respectively. Write-offs of receivables have not been material to the Company during the years ended December 31, 2021 and 2020.
ReinsuranceReinsurance Reinsurance recoverable, including amounts related to incurred but not reported claims (“IBNR”), represent paid losses and LAE and reserves for unpaid losses and LAE ceded to reinsurers that are subject to reimbursement under reinsurance treaties. To minimize exposure to losses related to a reinsurer’s inability to pay, the financial condition of such reinsurer is evaluated initially upon placement of the reinsurance and periodically thereafter. In addition to considering the financial condition of a reinsurer, the collectability of the reinsurance recoverable is evaluated based upon a number of other factors. Such factors include the amounts outstanding, length of collection periods, disputes, any collateral or letters of credit held and other relevant factors. To the extent that an allowance for uncollectible reinsurance recoverable is established, amounts deemed to be uncollectible would be written off against the allowance for estimated uncollectible reinsurance recoverable. The Company currently has no allowance for uncollectible reinsurance recoverable. Ceded premium written is recorded in accordance with the applicable terms of the reinsurance contracts and ceded premium earned is charged against revenue over the period of the reinsurance contracts. Ceded losses incurred reduce net loss and LAE incurred over the applicable periods of the reinsurance contracts with third-party reinsurers. Prepaid reinsurance premiums represents the unearned portion of premiums ceded to reinsurers. Amounts recoverable from reinsurers are estimated in a manner consistent with the liability associated with the reinsured business and consistent with the terms of the underlying contract.
Deferred Policy Acquisition Costs, net of Ceding CommissionsDeferred Policy Acquisition Costs, net of Ceding Commissions Incremental direct costs of acquiring insurance contracts and certain costs related directly to the acquisition process are deferred and amortized over the term of the policies or reinsurance treaties to which they relate. Those costs include commissions, premium taxes, and board and bureau fees. Ceding commissions relating to reinsurance agreements are recorded as a reimbursement for both deferrable and non-deferrable acquisition costs. The portion of the ceding commission that is equal to the pro-rata share of acquisition costs based on quota share percentage is recorded as an offset to the direct deferred acquisition costs. Any portion of the ceding commission that exceeds the deferrable acquisition costs of the business ceded is recorded as a deferred liability and amortized over the same period in which the related premiums are earned. The amortization of deferred policy acquisition costs is included in insurance related expenses on the consolidated statements of operations and comprehensive loss. The Company amortized deferred policy acquisition costs of $13.9 million and $3.7 million for the years ended December 31, 2021 and 2020, respectively.
Premium DeficiencyPremium Deficiency A premium deficiency is recognized if the sum of expected losses and LAE, unamortized acquisition costs, and policy maintenance costs exceeds the remaining unearned premiums. A premium deficiency would first be recognized by charging any unamortized acquisition costs to expense to the extent required to eliminate the deficiency. If the premium deficiency was greater than unamortized acquisition costs, a liability would be accrued for the excess deficiency. The Company does not consider anticipated investment income when determining if a premium deficiency exists. The Company recognized a $0.3 million and nil premium deficiency at December 31, 2021 and 2020, respectively.
Property and EquipmentProperty and Equipment Property and equipment is stated at cost, net of accumulated depreciation and is reflected within other assets on the consolidated balance sheets. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful life of three years for furniture, fixtures, and equipment and two years for computer equipment. Leasehold improvements are also depreciated using the straight-line method and are amortized over the shorter of the remaining term of the lease or the useful life of the improvement. Depreciation expense totaled $0.4 million for the years ended December 31, 2021 and 2020, respectively. Expenditures for improvements are capitalized, and expenditures for maintenance and repairs are expensed as incurred. Upon sale or retirement, the cost and related accumulated depreciation is removed from the related accounts, and the resulting gain or loss, if any, is reflected in interest and other expense in the consolidated statements of operations and comprehensive loss.
LeasesLeases The Company categorizes leases at their inception as either operating or capital leases. As of and for the years ended December 31, 2021 and 2020, the Company’s leases are categorized as operating. In certain lease agreements, the Company may receive rent holidays and other incentives. For operating leases, the Company recognizes lease costs on a straight-line basis once control of the space is achieved, without regard to deferred payment terms such as rent holidays that defer the commencement date of required payments. Additionally, incentives received are treated as a reduction of costs over the term of the agreement.
Capitalized Internal Use SoftwareCapitalized Internal Use Software The Company capitalizes the costs to develop its internal use software when preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. Such costs are amortized on a straight-line basis over the estimated useful life of five years. Costs incurred prior to meeting these criteria, in addition to costs incurred for training and maintenance, are expensed as incurred.
Goodwill and Intangible AssetsGoodwill and Intangible Assets The Company accounts for business combinations using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recorded at their fair values as of the acquisition date on the consolidated balance sheets. Any excess of purchase price over the fair value of net assets acquired is recorded as goodwill. The determination of estimated fair value requires the Company to make significant estimates and assumptions. Transaction costs associated with business combinations are expensed as they are incurred. Included in the purchase price of an acquisition may be an estimation of the fair value of liabilities associated with contingent consideration. The fair value of contingent consideration is based upon the present value of the expected future payments to be made to the sellers of an acquired business in accordance with the provisions contained in the respective purchase agreements. Subsequent changes in the fair value of contingent consideration are recorded in the consolidated statements of operations and comprehensive loss. When the Company determines net assets acquired does not meet the definition of a business combination under the acquisition method of accounting, the transaction is accounted for as an acquisition of assets and, therefore, no goodwill is recorded.
Amortization and ImpairmentAmortization and Impairment Intangible assets with finite useful lives are amortized over their estimated useful lives in the consolidated statements of operations and comprehensive loss. Indefinite-lived intangible assets and goodwill are not amortized but are tested for impairment annually, or more frequently if necessary. The goodwill impairment test is performed at the reporting unit level. To review for impairment the Company first assess qualitative factors to determine whether events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. After assessing the totality of events and circumstances, if the Company determines that it is not more likely than not that the fair value of a reporting units is less than its carrying amount, no further assessment is performed. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company calculates the fair value of that reporting unit and compares the fair value to the reporting unit’s net book value. If the fair value of the reporting unit is greater than its net book value, there is no impairment. If the net book value exceeds the reporting unit’s fair value, an impairment loss is recognized, with the loss not exceeding the total amount of goodwill allocated to that reporting unit. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. Indefinite-lived intangible assets are tested for impairment by comparing the estimated fair value of the asset to the asset’s carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized, and the asset is written down to its estimated fair value. There were no material impairment losses recognized on indefinite-lived intangible assets or goodwill during the years ended December 31, 2021 and 2020. The Company evaluates the recoverability of long-lived assets, excluding goodwill and indefinite-lived intangible assets, whenever events or changes in circumstances indicate the carrying value of such asset may not be recoverable. Should there be an indication of impairment, the Company tests for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of the asset to the carrying amount of the asset or asset group. If the asset or asset group is determined to be impaired, any excess of the carrying value of the asset or asset group over its estimated fair value is recognized as an impairment loss. There were no material impairment losses recognized on long-lived assets during the years ended December 31, 2021 and 2020.
Loss and Loss Adjustment Expense ReserveLoss and Loss Adjustment Expense Reserve The reserve for unpaid losses and loss adjustment expenses include estimates for unpaid claims, claims adjustment expenses on reported losses and estimates of losses incurred but not reported (IBNR), net of salvage and subrogation recoveries. The liability is based on the Company’s best estimate of the amounts yet to be paid for all loss and loss adjustment expenses that will be paid on claims that occurred during the period and prior, whether those claims are currently known or unknown. Loss and loss adjustment reserves at December 31, 2021 are the amount of ultimate loss and loss adjustment expense less the paid amounts as of December 31, 2021. Ultimate loss and loss adjustment expense is the sum of the following items:
1. Loss and loss adjustment expense paid through a given evaluation date
2. Case reserves for loss and loss adjustment expense for losses that have been reported but not yet paid as of a given evaluation date
3. IBNR for loss and loss adjustment expense include an estimate for future loss payments on incurred claims not yet reported and for expected development on reported claims Case reserves are established within the claims adjustment process based on all known circumstances of a claim at the time. In addition, IBNR reserves are established by the Company based on reported loss and loss adjustment expenses and estimates of ultimate loss and loss adjustment expenses based on generally accepted actuarial reserving techniques that consider quantitative loss experience data and qualitative factors as appropriate. The most significant assumptions used in the determination of the recorded reserve for loss and loss adjustment expenses are historical aggregate claim reporting and payment patterns, which is assumed to be indicative of future loss development and trends. Additionally, claim counts are used for analyses relating to natural disasters, such as hurricanes, earthquakes, and wildfires as losses from these events are inherently more difficult to estimate due to the potential exposure of the catastrophic events. Other assumptions considered include information developed from internal and independent external sources such as premium, rate and cost trends, litigation and regulatory trends, legislative activity, climate change, social and economic patterns. Inherent in the estimates of ultimate loss and loss adjustment expenses are expected trends in claims severity and frequency among other factors that could vary significantly as claims are settled. The Company’s loss and loss adjustment expense reserves are continually reviewed, and adjustments, if any, are reflected in current operations in the consolidated statements of operations and comprehensive loss in the period in which they become known. The establishment of new loss and loss adjustment expense reserves or the adjustment of previously recorded loss and loss adjustment expense reserves could result in significant positive or negative changes to the Company’s financial condition for any particular period. While the Company believes that it has made a reasonable estimate of loss and loss adjustment expense reserves, the ultimate loss experience may not be as reliably predicted as may be the case with other insurance expenses, and it is possible that actual loss and loss adjustment expenses will be higher or lower than the loss and loss adjustment reserve amount recorded by the Company.
Provision for CommissionProvision for Commission Provision for commission includes return commission payable to insurers based on the actual performance of insurance policies issued by the Company against a contractual range of performance targets. The Company’s reserve estimation is based on current and historical performance of the portfolio of insurance policies placed with the insurance carriers. Provision for commission also includes cancellation reserve which represent the Company’s estimate of return commission payable to insureds based on policy cancellations after the effective date. The Company’s estimation for the reserve uses historical policy cancellation. The commission slide and cancellation liabilities are based on assumptions and estimates, and while management believes the amount recorded is the Company’s best estimate, the ultimate liability may differ from the amount recorded. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in the period in which they become known.
Revenue RecognitionRevenue Recognition Net Earned Premium Net earned premium represents the earned portion of the Company’s gross written premium for insurance policies written or assumed by the Company and less ceded written premium (any portion of the Company’s gross written premium that is ceded to third-party reinsurers under the Company’s reinsurance agreements). The Company earns written premiums on a pro-rata basis over the term of the policies. Unearned premium represents the unexpired portion of the Company’s gross written premium. Amounts applicable to reinsurance ceded for unearned premium reserves are reported as a prepaid reinsurance premiums on the consolidated balance sheet. Commission Income, net Commission income, net includes:
1. Managing General Agent (“MGA”) Commission: The Company operates as a MGA for multiple insurers. The Company designs and underwrites insurance products on behalf of the insurers culminating in the sale of insurance policies. The Company earns recurring commission and policy fees associated with the policies, they sell. While the Company has underwriting authority and responsibility for administering claims, the Company does not take the risk associated with policies on the consolidated balance sheets. Rather, the Company works with affiliated and unaffiliated carrier platforms and a diversified panel of highly rated reinsurance companies who pay the Company commission in exchange for the opportunity to take that risk on their balance sheets. The Company’s performance obligation associated with these contracts is the placement of the policy, which is met on the effective data. Upon issuance of a new policy, the Company charges policy fees and inspection fees, retains the share of ceding commission, and remits the balance of premium collected to the respective insurers. Subsequent ceding commission adjustments arising from policy changes such as endorsements, are recognized when the adjustments can be reasonably estimated.
2. Agency Commission: The Company also operates licensed insurance agencies that are engaged solely in the sale of policies, including non-Hippo policies. For these policies, the Company earns a recurring agency commission from the carriers whose policies the Company sells, which is recorded in the commission income, net line in the consolidated statements of operations and comprehensive loss. Similar to the MGA business, the performance obligation from the agency contracts is the placement of the insurance policies. For both MGA and insurance agency activities, the Company recognizes commission received from insurers for the sale of insurance contracts as revenue at a point in time on the policy effective dates.
3. Ceding Commission: The Company receives revenue based on the premium it cedes to third-party reinsurers for the compensation reimbursement for the Company’s acquisition and underwriting services. Excess ceding commission over the cost of acquisition and underwriting expenses is included in commission income, net line on the consolidated statements of operations and comprehensive loss. For the policies that the Company write on its own carrier as MGA, the Company recognizes the commission as ceding commission on the consolidated statements of operations and comprehensive loss. The Company earns commission on reinsurance premium ceded in a manner consistent with the recognition of the earned premium on the underlying insurance policies, on a pro-rata basis over the terms of the policies reinsured. The Company records the portion of ceding commission income which represents reimbursement of successful direct acquisition costs related to the underlying policies as an offset to the applicable direct acquisition costs.
4. Carrier Fronting Fees: Through the Company’s insurance-as-a-service business the Company earns recurring fees from the MGA programs it supports. The Company earns fronting fees in a manner consistent with the recognition of the earned premium on the underlying insurance policies, on a pro-rata basis over the terms of the policies. This revenue is included in the commission income, net line on the consolidated statements of operations and comprehensive loss.
5. Claim Processing Fees: As a MGA the Company receives a fee, that is calculated as a percent of the premium, from the insurers in exchange for providing claims adjudication services. The claims
adjudication services are provided over the term of the policy and recognized ratably over the same period. Service and Fee Income Service and fee income mainly represent policy fees and small portion of other revenue. The Company directly bills policyholders for policy fees and collect and retain fees per the terms of the contracts between the Company and its insurers. Similar to the commission revenue, the Company estimates a cancellation reserve for policy fees using historical information. The performance obligation associated with these fees is satisfied at a point in time upon completion of the underwriting process, which is the policy effective date. Accordingly, the Company recognizes all fees as revenue on the policy effective date.
Insurance-Related ExpensesInsurance-Related Expenses Insurance-related expenses primarily consist of amortization of commissions costs and deferred acquisition costs, and credit card processing fees not charged to the Company’s customers. Insurance-related expenses also include employee compensation (including stock-based compensation and benefits) of the Company’s underwriting teams as well as allocated occupancy costs and related overhead based on headcount, and amortization of capitalized internal use software costs. Insurance-related expenses are offset by the portion of ceding commission income which represents reimbursement of successful acquisition costs related to the underlying policies. Additionally, insurance-related expenses are comprised of the costs of providing bound policies and delivering claims services to the Company’s customers. These costs include technology service costs including software, data services, and third-party call center costs in addition to personnel-related costs.
Technology and DevelopmentTechnology and Development Technology and development expenses primarily consist of employee compensation (including stock-based compensation and benefits) for the Company’s technology staff, which includes technology development, infrastructure support, actuarial, and third-party services. Technology and development also includes allocated facility costs and related overhead based on headcount.
Sales and MarketingSales and Marketing Sales and marketing expenses primarily consist of sales commissions, advertising costs, and marketing expenditures, as well as employee compensation (including stock-based compensation and benefits) for employees engaged in sales, marketing, data analytics, and customer acquisition. The Company expenses advertising costs as incurred. Sales and marketing also include allocated facility costs and related overhead based on headcount. Advertising costs were $28.9 million and $12.2 million for the years ended December 31, 2021 and 2020, respectively.
General and AdministrativeGeneral and Administrative General and administrative expenses primarily consist of employee compensation (including stock-based compensation and benefits) for the Company’s finance, human resources, legal, and general management functions as well as facilities, insurance, and professional services.
Interest and Other (Income) ExpenseInterest and Other (Income) Expense Interest and other (income) expense after the Business Combination in August 2021 primarily consist of fair value adjustments on outstanding warrants. Prior to the Business Combination, interest and other (income) expense primarily consisted of interest expense incurred for the convertible promissory notes, fair value adjustments on preferred stock warrant liabilities, and fair value adjustments on the embedded derivative on convertible promissory notes.
Gain On Extinguishment Of DebtGain on extinguishment of debt The Company recorded a gain on the extinguishment of the convertible promissory notes and related derivative liability of $47.0 million and nil for the years ended December 31, 2021 and 2020, respectively.
Stock-Based Compensation ExpenseStock-Based Compensation Expense The Company recognizes stock-based compensation expense based on the estimated fair value of equity-based payment awards on the date of grant using the Black-Scholes-Merton option-pricing model. The Company recognizes stock-based compensation expenses for the value of its awards granted based on the straight-line method over the requisite service period of each of the awards in the Company’s consolidated statements of operations and comprehensive loss. The Company has elected to record forfeitures as they occur. Certain employees early exercised stock options in exchange for promissory notes. The Company accounted for the promissory notes as nonrecourse in their entirety since the promissory notes are not aligned with a corresponding percentage of the underlying shares. The fair value of the stock option is recognized over the requisite service period through a charge to stock-based compensation expenses. The maturity date of the promissory notes reflects the legal term of the stock option for purposes of valuing the award. These loans and all interest accrued thereon was forgiven upon the consummation of the Business Combination. The forgiveness of the promissory notes were deemed to be exercises.
Income TaxesIncome Taxes The Company accounts for income taxes using the asset and liability method, under which deferred tax liabilities and assets are recognized for the expected future tax consequences of temporary differences between consolidated financial statement carrying amounts and the tax basis of assets and liabilities and net operating loss and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The effect on deferred taxes of a change in tax rate is recognized in income in the period that includes the enactment date. The Company accounts for application of the U.S. Global Intangible Low Taxed Income rules by recognizing the tax in the period in which it is incurred. The Company determines whether it is more likely than not that a tax position will be sustained upon examination. If it is not more likely than not that a position will be sustained, no amount of benefit attributable to the position is recognized. The tax benefit to be recognized of any tax position that meets the more likely than not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon resolution of the contingency.
Net Loss Per Share Attributable to Common Stockholders of Hippo Holdings Inc.Net Loss Per Share Attributable to Common Stockholders of Hippo Holdings Inc. Basic and diluted net loss per share attributable to common stockholders of Hippo Holdings Inc. is presented in conformity with the two-class method required for common stock and participating securities. Under the two-class Under the two-class method, the net loss attributable to common stockholders of Hippo Holdings Inc. is not allocated to the convertible preferred stock and unvested common stock as these securities do not have a contractual obligation to share in the Company’s losses. Distributed and undistributed earnings allocated to participating securities are subtracted from net loss in determining net loss attributable to common stockholders. Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average shares used in computing net loss per share attributable to common stockholders. For periods in which the Company reports net losses, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.
Emerging Growth CompanyEmerging Growth Company The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 and is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance.
Recent Accounting Pronouncements Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted Internal Use Software In August 2018, the FASB issued ASU No. 2018-15, Intangibles — Goodwill and Other — Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial instruments — Credit Losses (Topic 326) In January 2020, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes interim periods beginning after December 15, 2022, with early adoption permitted. The Company expects to adopt ASU 2019-12 under the private company transition guidance beginning January 1, 2022 and does not expect the adoption of this standard to have a material impact on the Company’s consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity

Description of Business and S_3

Description of Business and Summary of Significant Accounting Policies (Tables)12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Disaggregation of Revenue by Major SourceThe following table disaggregates the Company’s revenues by major source (in millions):
Year Ended December 31,
2021 2020
Net earned premium $ 38.9 $ 17.1
Ceding commissions, net 21.3 1.2
Agency commissions, net 12.3 8.4
Policy fees 10.9 2.6
MGA commissions, net 2.6 12.8
Claims processing fees 1.3 4.6
Other revenue 3.6 3.8
Net investment income 0.3 1.1
Total revenue, net $ 91.2 $ 51.6

Business Combinations (Tables)

Business Combinations (Tables)12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Schedule Of Reverse RecapitalizationThe following table reconciles the elements of the Business Combination and the PIPE investment to the Condensed Consolidated Statements of Cash Flows and the Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the year ended December 31, 2021:
in millions Recapitalization
Cash in trust, net of redemptions $ 37.7
Cash — PIPE 550.0
Less: Cash used for repurchase of common stock (95.0 )
Less: transaction costs and advisory fees (42.4 )
Net cash received from the Business Combination and PIPE investment $ 450.3
Net assets acquired from the Business Combination 3.6
Total $ 453.9
The number of shares of common stock issued immediately following the consummation of the Business Combination and the PIPE Investment:
Number of Shares
Class A common stock outstanding prior to Business Combination 23,000,000
Less: Redemption of RTPZ Class A common stock (19,261,380 )
Class A common stock of RTPZ 3,738,620
RTPZ Founder shares — Class B 5,750,000
PIPE Shares 55,000,000
Business Combination and PIPE shares which converted to Hippo common stock 64,488,620
Old Hippo shares, net of repurchase (1) 495,242,606
Total shares of common stock outstanding immediately after Business Combination and PIPE investment 559,731,226
(1) The number of Old Hippo shares was determined based on Old Hippo common stock outstanding immediately prior to the closing of the Business Combination multiplied by the Exchange Ratio of 6.95433 adjusted for buyback of 9,500,000 shares of common stock. For further details, refer to Note 17, Stockholders’ Equity.

Investments (Tables)

Investments (Tables)12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Fixed Maturities Securities and Short-Term InvestmentsThe amortized cost and fair value of fixed maturities securities and short-term investments are as follows (in millions):
December 31, 2021
Amortized Unrealized Unrealized Fair
Fixed maturities available-for-sale:
U.S. government and agencies $ 9.3 $ — $ — $ 9.3
States, and other territories 5.8 — (0.1 ) 5.7
Corporate securities 17.3 — (0.2 ) 17.1
Foreign securities 0.9 — — 0.9
Residential mortgage-backed securities 10.8 — (0.2 ) 10.6
Commercial mortgage-backed securities 4.8 — (0.1 ) 4.7
Asset backed securities 6.7 — (0.1 ) 6.6
Total fixed maturities available-for-sale 55.6 — (0.7 ) 54.9
Short-term investments:
U.S. government and agencies 9.1 — — 9.1
Total $ 64.7 $ — $ (0.7 ) $ 64.0
December 31, 2020
Amortized Unrealized Unrealized Fair
Fixed maturities available-for-sale:
U.S. government and agencies $ 10.1 $ — $ — $ 10.1
States, and other territories 5.1 — — 5.1
Corporate securities 17.4 — — 17.4
Foreign securities 0.8 — — 0.8
Residential mortgage-backed securities 12.9 — — 12.9
Commercial mortgage-backed securities 5.4 0.1 — 5.5
Asset backed securities 4.2 — — 4.2
Total $ 55.9 $ 0.1 $ — $ 56.0
Investments Classified by Contractual Maturity DateThe amortized cost and fair value of fixed maturities securities by contractual maturity are as follows (in millions):
December 31, 2021
Amortized Fair
Due to mature:
One year or less $ 10.5 $ 10.5
After one year through five years 18.3 18.1
After five years 4.5 4.4
Residential mortgage-backed securities 10.8 10.6
Commercial mortgage-backed securities 4.8 4.7
Asset backed securities 6.7 6.6
Total fixed maturities available-for-sale $ 55.6 $ 54.9
Investment IncomeThe Company’s net investment income is comprised of the following (in millions):
Year Ended
2021 2020
Fixed maturities income $ 0.4 $ 1.1
Short-term investment income — —
Total gross investment income 0.4 1.1
Investment expenses (0.1 ) —
Net investment income $ 0.3 $ 1.1
Special DepositsThe following table summarizes special deposits (in millions):
December 31, 2021 December 31, 2020
Amortized Fair Amortized Fair
State
New York $ 3.2 $ 3.2 $ 3.1 $ 3.1
Illinois 1.9 1.9 1.6 1.6
Colorado 1.4 1.5 1.5 1.5
Virginia 0.3 0.4 0.4 0.4
North Carolina 0.3 0.3 0.3 0.3
New Mexico 0.3 0.3 0.4 0.4
Vermont 0.3 0.3 0.3 0.3
Florida 0.3 0.3 0.3 0.3
Nevada 0.2 0.2 0.4 0.4
Massachusetts 0.1 0.1 0.1 0.1
Georgia 0.1 0.1 — —
Total states $ 8.4 $ 8.6 $ 8.4 $ 8.4

Cash, Cash Equivalents, and R_2

Cash, Cash Equivalents, and Restricted Cash (Tables)12 Months Ended
Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
Schedule of Cash and Cash Equivalents The following table sets forth the cash, cash equivalents, and restricted cash (in millions):
December 31, December 31,
Cash and cash equivalents:
Cash $ 219.2 $ 56.7
Money market funds 556.4 372.1
Treasury bills — 23.5
Total cash and cash equivalents 775.6 452.3
Restricted cash:
Fiduciary assets 25.0 12.1
Letters of credit and cash on deposit 18.1 28.0
Total restricted cash 43.1 40.1
Total cash, cash equivalents, and restricted cash $ 818.7 $ 492.4
Restrictions on Cash and Cash EquivalentsThe following table sets forth the cash, cash equivalents, and restricted cash (in millions):
December 31, December 31,
Cash and cash equivalents:
Cash $ 219.2 $ 56.7
Money market funds 556.4 372.1
Treasury bills — 23.5
Total cash and cash equivalents 775.6 452.3
Restricted cash:
Fiduciary assets 25.0 12.1
Letters of credit and cash on deposit 18.1 28.0
Total restricted cash 43.1 40.1
Total cash, cash equivalents, and restricted cash $ 818.7 $ 492.4

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring BasisThe following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis (in millions):
December 31, 2021
Level 1 Level 2 Level 3 Total
Financial assets:
Cash equivalents:
Money market funds $ 556.4 $ — $ — $ 556.4
Total cash equivalents 556.4 — — 556.4
Fixed maturities available-for-sale:
U.S. government and agencies 9.3 — — 9.3
States, and other territories — 5.7 — 5.7
Corporate securities — 17.1 — 17.1
Foreign securities — 0.9 — 0.9
Residential mortgage-backed securities — 10.6 — 10.6
Commercial mortgage-backed securities — 4.7 — 4.7
Asset backed securities — 6.6 — 6.6
Total fixed maturities available-for-sale 9.3 45.6 — 54.9
Short term investments
U.S. government and agencies — 9.1 — 9.1
Total financial assets $ 565.7 $ 54.7 $ — $ 620.4
Financial liabilities:
Contingent consideration liability $ — $ — $ 11.6 $ 11.6
Public warrants 2.2 — — 2.2
Private placement warrants — 2.1 — 2.1
Total financial liabilities $ 2.2 $ 2.1 $ 11.6 $ 15.9
December 31, 2020
Level 1 Level 2 Level 3 Total
Financial assets:
Cash equivalents:
Money market funds $ 372.1 $ — $ — $ 372.1
Treasury bills 23.5 — — 23.5
Total cash equivalents 395.6 — — 395.6
Fixed maturities available-for-sale:
U.S. government and agencies 10.1 — — 10.1
States, and other territories — 5.1 — 5.1
Corporate securities — 17.4 — 17.4
Foreign securities — 0.8 — 0.8
Residential mortgage-backed securities — 12.9 — 12.9
Commercial mortgage-backed securities — 5.5 — 5.5
Asset backed securities — 4.2 — 4.2
Total fixed maturities available-for-sale 10.1 45.9 — 56.0
Total financial assets $ 405.7 $ 45.9 $ — $ 451.6
Financial liabilities:
Derivative liability on convertible promissory notes $ — $ — $ 113.3 $ 113.3
Contingent consideration liability — — 12.0 12.0
Preferred stock warrant liabilities — — 22.9 22.9
Total financial liabilities $ — $ — $ 148.2 $ 148.2
Liabilities Measured on at Fair Value, Unobservable Input ReconciliationThe table below presents the changes in the contingent consideration liability valued using Level 3 inputs (in millions):
2021 2020
Balance as of January 1, $ 12.0 $ 13.8
Payments of contingent consideration (3.9 ) (5.2 )
Changes in fair value 3.5 3.4
Balance as of December 31, $ 11.6 $ 12.0
The table below presents changes in the preferred stock warrant liability valued using Level 3 inputs (in millions):
2021 2020
Balance as of January 1, $ 22.9 $ 6.7
Changes in fair value 121.6 16.2
Settlement of preferred stock warrants (144.5 ) —
Balance as of December 31, $ — $ 22.9
2021 2020
Balance as of January 1, $ 113.3 $ —
Initial measurement of new derivative 2.8 107.2
Changes in fair value 61.4 6.1
Settlement of derivative liability (177.5 ) —
Balance as of December 31, $ — $ 113.3
The following table presents the changes in the fair value of the warrant liability (Public Warrants and Private Placement Warrants) (in millions):
2021
Balance as of January 1, $ —
Initial measurement of warrants 14.6
Changes in fair value (10.3 )
Balance as of December 31, $ 4.3

Goodwill (Tables)

Goodwill (Tables)12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of GoodwillThe following table represents the changes in goodwill (in millions):
Balance at January 1, 2020 $ 1.9
Additions from acquisitions 45.9
Balance at December 31, 2020 $ 47.8
Additions from acquisitions 5.2
Other adjustments 0.5
Balance at December 31, 2021 $ 53.5

Intangible Assets (Tables)

Intangible Assets (Tables)12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Indefinite-Lived Intangible AssetsDecember 31, 2021 December 31, 2020
Weighted- Gross Accumulated Net Gross Accumulated Net
(in millions) (in millions)
Agency and carrier relationships 6.9 $ 13.5 $ (1.7 ) $ 11.8 $ 13.5 $ (0.1 ) $ 13.4
State licenses and domain name Indefinite 10.5 — 10.5 7.1 — 7.1
Customer relationships 3.2 13.7 (6.0 ) 7.7 13.2 (3.8 ) 9.4
Developed technology 0.3 3.6 (2.7 ) 0.9 3.6 (1.4 ) 2.2
VOBA 0.7 0.1 (0.1 ) — 0.1 — 0.1
Other 6.5 2.0 (0.7 ) 1.3 1.9 (0.2 ) 1.7
Total intangible assets, net $ 43.4 $ (11.2 ) $ 32.2 $ 39.4 $ (5.5 ) $ 33.9
Schedule of Finite-Lived Intangible AssetsDecember 31, 2021 December 31, 2020
Weighted- Gross Accumulated Net Gross Accumulated Net
(in millions) (in millions)
Agency and carrier relationships 6.9 $ 13.5 $ (1.7 ) $ 11.8 $ 13.5 $ (0.1 ) $ 13.4
State licenses and domain name Indefinite 10.5 — 10.5 7.1 — 7.1
Customer relationships 3.2 13.7 (6.0 ) 7.7 13.2 (3.8 ) 9.4
Developed technology 0.3 3.6 (2.7 ) 0.9 3.6 (1.4 ) 2.2
VOBA 0.7 0.1 (0.1 ) — 0.1 — 0.1
Other 6.5 2.0 (0.7 ) 1.3 1.9 (0.2 ) 1.7
Total intangible assets, net $ 43.4 $ (11.2 ) $ 32.2 $ 39.4 $ (5.5 ) $ 33.9
Finite-lived Intangible Assets Amortization ExpenseAs of December 31, 2021, the projected annual amortization expense for the Company’s intangible assets for the next five years is as follows (in millions):
Year ending December 31,
2022 $ 5.2
2023 4.2
2024 4.0
2025 2.4
2026 1.7
Thereafter 4.2
Total $ 21.7

Capitalized Internal Use Soft_2

Capitalized Internal Use Software (Tables)12 Months Ended
Dec. 31, 2021
Research and Development [Abstract]
Schedule of Capitalized Computer SoftwareThe following table represents the changes in capitalized internal use software:
December 31, December 31,
(in millions)
Capitalized internal use software $ 34.5 $ 18.4
Less: accumulated amortization (8.6 ) (3.7 )
Total capitalized internal use software $ 25.9 $ 14.7

Accrued Expenses and Other Li_2

Accrued Expenses and Other Liabilities (Tables)12 Months Ended
Dec. 31, 2021
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other LiabilitiesDecember 31, December 31,
(in millions)
Claim payments outstanding $ 23.2 $ 9.9
Deferred revenue 11.2 1.7
Advances from customers 8.7 4.4
Employee related accruals 8.5 5.0
Accrued licenses and taxes 5.8 2.5
Premium refund liability 4.8 2.6
Warrant liability 4.3 —
Fiduciary liability 3.7 5.0
Other 13.6 12.1
Total accrued expenses and other liabilities $ 83.8 $ 43.2

Loss and Loss Adjustment Expe_2

Loss and Loss Adjustment Expense Reserves (Tables)12 Months Ended
Dec. 31, 2021
Insurance [Abstract]
Schedule of Liability for Unpaid Claims and Claims Adjustment ExpenseThe reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance is summarized as follows for the year ended December 31, (in millions):
2021 2020
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of beginning of the period $ 105.1 $ —
Reinsurance recoverables on unpaid losses (92.1 ) —
Reserve for losses and LAE, net of reinsurance recoverables as of beginning of the period 13.0 —
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year 85.0 25.3
Prior years (0.6 ) —
Total incurred 84.4 25.3
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year 43.6 17.0
Prior year 9.8 0.3
Total paid 53.4 17.3
Reserve for losses and LAE, net of reinsurance recoverables acquired from Spinnaker — 5.0
Reserve for losses and LAE, net of reinsurance recoverables at end of period 44.0 13.0
Add: Reinsurance recoverables on unpaid losses and LAE at end of period 216.8 92.1
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of end of the period $ 260.8 $ 105.1
Short-duration Insurance Contracts, Claims DevelopmentThe information about incurred and paid claims development for the years ended prior to December 31, 2021 is presented as unaudited supplementary information. In addition, the following table shows incurred loss and LAE by accident year in aggregate as the Company has one single operating and reportable segment (in millions, except for number of claims):
December 31, December 31, 2021
2015* 2016* 2017* 2018* 2019* 2020* 2021 IBNR Cumulative
Accident Year
2015 $ — $ — $ — $ — $ — $ — $ — $ — 7
2016 2.5 1.9 1.9 1.8 1.8 1.8 — 715
2017 5.2 4.4 4.0 4.0 4.0 — 3,072
2018 7.8 7.2 7.2 7.2 0.5 5,882
2019 4.8 4.9 4.7 — 14,952
2020 28.1 27.7 1.5 28,304
2021 76.7 32.1 38,903
Total incurred Loss and Loss Adjustment Expenses, net $ 122.1 $ 34.1 91,835
* Presented as unaudited required supplementary information Cumulative paid loss and LAE, net of reinsurance
December 31,
2015* 2016* 2017* 2018* 2019* 2020* 2021
Accident Year
2015 $ — $ — $ — $ — $ — $ — $ —
2016 1.2 1.8 1.9 1.8 1.8 1.8
2017 3.0 4.0 4.0 4.0 4.0
2018 5.3 5.7 5.7 5.7
2019 3.2 4.4 4.6
2020 17.1 26.8
2021 35.2
Total paid losses and LAE, net $ 78.1
Total unpaid loss and LAE reserves, net 44.0
Ceded unpaid loss and LAE $ 216.8
Gross unpaid loss and LAE $ 260.8
* Presented as unaudited required supplementary information
Short-duration Insurance Contracts, Schedule of Historical Claims DurationThe following table presents the average annual percentage payout of incurred losses by age, net of reinsurance as of December 31, 2021:
Years 1 2 3 4 5
Property and Casualty 81 % 12 % 3 % 3 % 2 %
Short-duration Insurance Contracts, Reconciliation of Claims Development to LiabilityThe reconciliation of the net incurred and paid loss information in the loss reserve rollforward table and development tables with respect to the 2021 and 2020 accident year is as follows (in millions):
2021 Current
Incurred Paid
Development table $ 76.7 $ 35.2
Unallocated loss adjustment expense 8.3 8.3
Other — 0.1
Rollforward table $ 85.0 $ 43.6
2020 Current
Incurred Paid
Development table $ 28.1 $ 17.1
Unallocated loss adjustment expense 2.2 (2.1 )
Loss and LAE of Spinnaker prior to the acquisition (5.0 ) 2.0
Rollforward table $ 25.3 $ 17.0

Reinsurance (Tables)

Reinsurance (Tables)12 Months Ended
Dec. 31, 2021
Insurance [Abstract]
Effects of ReinsuranceThe following tables reflect amounts affecting the consolidated balance sheets and statements of operations and comprehensive loss for ceded reinsurance as of and for the years ended December 31, 2021, and 2020 (in millions).
As of December 31,
2021 2020
Loss and LAE Unearned Loss and LAE Unearned
Direct $ 253.4 $ 246.6 $ 102.7 $ 143.7
Assumed 7.4 6.5 2.4 6.6
Gross 260.8 253.1 105.1 150.3
Ceded (216.8 ) (231.6 ) (92.1 ) (129.4 )
Net $ 44.0 $ 21.5 $ 13.0 $ 20.9
For the Year Ended December 31,
2021 2020
Written Earned Loss and LAE Written Earned Loss and LAE
Direct $ 474.0 $ 364.7 $ 498.5 $ 90.0 $ 88.7 $ 93.6
Assumed 3.3 9.8 16.9 26.1 9.3 13.3
Gross 477.3 374.5 515.4 116.1 98.0 106.9
Ceded (434.8 ) (335.6 ) (431.0 ) (78.4 ) (80.9 ) (81.6 )
Net $ 42.5 $ 38.9 $ 84.4 $ 37.7 $ 17.1 $ 25.3
Reinsurance RecoverableAmounts recoverable from reinsurers are recognized in a manner consistent with the claims liabilities associated with the reinsurance placement and presented on the balance sheet as reinsurance recoverable on paid and unpaid losses and LAE. Such balance is presented in the table below (in millions).
December 31,
2021 2020
Reinsurance recoverable on paid loss $ 50.1 $ 42.0
Ceded unpaid loss and LAE 216.8 92.1
Total reinsurance recoverable $ 266.9 $ 134.1
Ceded Credit RiskThe Company has the following unsecured reinsurance recoverable and prepaid reinsurance premium balances from reinsurers as of December 31, 2021 (in millions):
December 31,
AM Best Reinsurer 2021 2020
A+ Everest Insurance Company $ 65.7 $ 4.2
A Validus Reinsurance (Switzerland) Ltd. 57.5 22.6
A+ Transatlantic Reinsurance Company 46.3 28.8
A+ Renaissance Reinsurance U.S. Inc. 28.9 5.5
A+ Munich Reinsurance America, Inc. 18.3 11.7
A Validus Reinsurance, Ltd. 9.6 46.9
A++ General Reinsurance Corporation 7.9 14.4
$ 234.2 $ 134.1
Other reinsurers 86.9 28.4
$ 321.1 $ 162.5

Geographical Breakdown of Gro_2

Geographical Breakdown of Gross Written Premium (Tables)12 Months Ended
Dec. 31, 2021
Insurance [Abstract]
Gross Written Premium by Geographical AreasGross written premium by state is as follows (in millions):
Year Ended December 31,
2021 2020
Amount % of GWP Amount % of GWP
State
Texas $ 139.2 29.2 % $ 43.9 37.8 %
California 85.2 17.9 % 10.4 9.0 %
Florida 26.8 5.6 % 7.3 6.3 %
Georgia 22.0 4.6 % 4.7 4.0 %
Illinois 19.1 4.0 % 4.9 4.2 %
Colorado 13.6 2.8 % 2.5 2.2 %
Missouri 13.0 2.7 % 3.4 2.9 %
Arizona 11.4 2.4 % 1.6 1.4 %
Ohio 10.5 2.2 % 3.0 2.6 %
New Jersey 10.4 2.2 % 3.4 2.9 %
Other 126.1 26.4 % 31.0 26.7 %
Total $ 477.3 100 % $ 116.1 100 %

Commitment and Contingencies (T

Commitment and Contingencies (Tables)12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating LeasesAt December 31, 2021, future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year, most of which pertain to real estate leases, are as follows (in millions):
Year ending December 31,
2022 $ 4.1
2023 5.1
2024 5.2
2025 5.2
2026 4.2
Thereafter 5.2
Total $ 29.0

Convertible Preferred Stock (Ta

Convertible Preferred Stock (Tables)12 Months Ended
Dec. 31, 2021
Temporary Equity Disclosure [Abstract]
Temporary EquityThe following tables summarize the authorized, issued and outstanding convertible preferred stock of the Company (in millions, except share and per share data):
December 31, 2020
Issuance Price Authorized Shares Issued and Net Carrying Liquidation
Preferred A-1 Stock $ 0.56965 40,959,815 40,959,815 $ 3.4 $ 3.4
Preferred A-2 Stock 1.57432 48,790,097 48,590,772 10.9 11.0
Preferred B Stock 3.59757 48,326,627 48,326,627 24.9 25.0
Preferred C Stock 7.04471 69,101,902 69,101,895 56.1 70.0
Preferred C-1 Stock 11.74119 17,145,581 — — —
Preferred D Stock 15.16420 45,860,183 45,860,183 99.8 100.0
Preferred E Stock 19.66420 53,048,255 53,048,151 149.7 150.0
Total 323,232,460 305,887,443 $ 344.8 $ 359.4
Fair Value Measurement Inputs and Valuation TechniquesThe following assumptions were used in determining fair value of the convertible preferred stock warrant liabilities:
December 31, 2020
Fair value of Series A-2 Preferred Stock $18.25
Fair value of Series C-1 Preferred Stock $20.09
Exercise price A-2 Preferred Stock $1.57
Exercise price C-1 Preferred Stock $11.74
Expected term (in years) 1.8-6.2
Expected volatility 29.0%-40.7%
Risk-free interest rate 0.1%-0.5%
Expected dividend yield —%

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)12 Months Ended
Dec. 31, 2021
Equity [Abstract]
Schedule of Activity From Outstanding Instruments Related To Business AcquisitionThe below table shows the conversion of Old Hippo’s outstanding instruments on the date of the Closing that were converted, exercised, or issued as stock consideration.
Description Balance Exchange Post Conversion
Old Hippo common stock 15,940,914 6.95433 110,858,374
Old Hippo convertible preferred stock 43,985,178 6.95433 305,887,443
Old Hippo convertible promissory notes 6,247,807 6.95433 43,449,312
Old Hippo preferred stock warrants 2,494,116 6.95433 17,344,906
Old Hippo common stock warrants 3,911,610 6.95433 27,202,571
504,742,606
Less: Repurchase of common stock (9,500,000 )
Net Old Hippo shares consideration 495,242,606
Stock Warrants OutstandingThe following common stock warrants were outstanding as of December 31, 2020:
Issue Date Exercise Price Number of Expiration Date Outstanding as of
December 11, 2017 $ 0.01 4,738,051 December 31, 2022 4,738,051
February 19, 2018 $ 0.01 4,738,051 August 19, 2022 4,738,051
Share-based Payment Arrangement, Option, ActivityThe following table summarizes option activity under the plans:
Options Outstanding Weighted-Average Contract Term Aggregate
Number of Weighted
Outstanding as of January 1, 2021 72,205,242 $ 0.70 8.90 $ 108.9
Granted 9,686,589 4.81
Exercised (22,801,742 ) 0.33
Cancelled/Expired (11,551,163 ) 2.05
Outstanding as of December 31, 2021 47,538,926 $ 1.39 8.30 $ 84.8
Vested and exercisable as of December 31, 2021 15,919,802 $ 0.81 7.88 $ 32.9
Schedule of Share-based Payment Award, Stock Options, Valuation AssumptionsThe fair value of granted stock options was estimated as of the date of grant using the Black-Scholes-Merton option-pricing model, based on the following inputs:
December 31,
2021 2020
Expected term (in years) 5.4 - 6.5 5.6 - 6.1
Expected volatility 29.6% - 30.1% 22.6% - 29.9%
Risk-free interest rate 0.6% - 1.4% 0.3% - 1.6%
Expected dividend yield — % — %
Schedule of Unvested Restricted Stock Units Roll ForwardNumber of Weighted Average
Unvested and outstanding as of December 31, 2020 — $ —
Granted 28,233,515 3.91
Vested (187,125 ) 4.00
Canceled and forfeited (875,460 ) 3.97
Unvested and outstanding as of December 31, 2021 27,170,930 3.91
Share-based Payment Arrangement, Expensed and Capitalized, AmountTotal stock-based compensation expense, classified in the accompanying consolidated statements of operations and comprehensive loss was as follows (in millions):
Year Ended
2021 2020
Losses and loss adjustment expenses $ 0.6 $ 0.1
Insurance related expenses 1.1 0.2
Technology and development 6.8 2.4
Sales and marketing 5.0 2.1
General and administrative 10.8 12.4
Total stock-based compensation expense $ 24.3 $ 17.2

Income Taxes (Tables)

Income Taxes (Tables)12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]
Schedule of Income before Income Tax, Domestic and ForeignIncome (loss) before tax consists of the following (in millions)
Year Ended
2021 2020
United States $ (371.3 ) $ (143.2 )
Foreign 0.6 —
Total $ (370.7 ) $ (143.2 )
Schedule of Effective Income Tax Rate ReconciliationThe components of the total provision for income taxes are as follows (in millions):
Year Ended
2021 2020
Loss before income taxes $ (370.7 ) $ (143.2 )
Income tax benefit from statutory rate (77.9 ) (30.1 )
Effect of:
Meals, entertainment & parking 0.1 0.1
Deferred compensation 27.8 8.1
Transaction costs 0.1 0.1
State taxes (7.2 ) (1.1 )
Non-deductible interest 5.5 —
Increase in valuation allowance 53.4 19.9
Other (1.1 ) 1.2
Income taxes expense (benefit) $ 0.7 $ (1.8 )
Schedule of Components of Income Tax Expense (Benefit)The components of the provision for income taxes are as follows (in millions):
Year Ended
2021 2020
Income tax applicable to:
Current
State $ 0.2 $ 0.2
Foreign 0.5 —
Total current provision $ 0.7 $ 0.2
Deferred
Federal $ — $ (1.9 )
State — (0.1 )
Total deferred provision $ — $ (2.0 )
Total provision for income taxes $ 0.7 $ (1.8 )
Schedule of Deferred Tax Assets and LiabilitiesSignificant components of the Company’s deferred tax assets and liabilities are as follows (in millions):
As of December 31,
2021 2020
Deferred tax assets:
Net operating loss carryforward $ 87.4 $ 35.4
Provision for commission — 5.4
Intangible assets 3.5 3.1
Research and development credit 2.4 0.2
Deferred compensation 2.2 0.3
Unearned premium reserve 1.2 1.0
Loss reserve discount 0.6 0.1
Unrealized losses 0.2 —
Deferred rent 0.2 0.1
Other accruals 3.5 0.9
Interest expense limitation — 0.6
Total deferred tax assets $ 101.2 $ 47.1
Valuation allowance (93.2 ) (39.6 )
Total deferred income tax assets $ 8.0 $ 7.5
Deferred tax liabilities
Property and equipment $ 0.3 $ 0.1
Provision for commission 0.2 —
Capitalized software 6.1 3.3
Acquired intangibles 0.2 0.5
Unrealized gains — 0.4
Spinnaker stepped-up adjustment — 2.9
Deferred acquisition costs 0.9 0.3
Other 0.3 —
Total deferred tax liabilities $ 8.0 $ 7.5
Deferred income tax assets, net $ — $ —
Summary of Operating Loss CarryforwardsComponents of the NOL carryforwards are as follows (in millions):
20-year Carryforward Indefinite Total
U.S. Federal $ 62.4 $ 310.5 $ 372.9
U.S. State 136.3 — 136.3
Balance as of December 31, 2021 $ 198.7 $ 310.5 $ 509.2

Net Loss Per Share Attributab_2

Net Loss Per Share Attributable to Common Stockholders (Tables)12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and DilutedNet loss per share attributable to common stockholders was computed as follows:
Year Ended December 31,
2021 2020
Numerator:
Net loss attributable to Hippo – basic and diluted (in millions) $ (371.4 ) $ (141.5 )
Denominator:
Weighted-average shares used in computing net loss per share attributable to Hippo — basic and diluted 272,168,933 86,897,893
Net loss per share attributable to Hippo — basic and diluted $ (1.36 ) $ (1.63 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per SharePotential dilutive securities that were not included in the diluted loss per share calculations because they would be anti-dilutive were as follows:
December 31,
2021 2020
Convertible preferred stock (on an as if converted basis) — 275,009,550
Outstanding options 47,538,926 58,168,262
Warrants to purchase common shares 9,000,000 33,127,646
Warrants to purchase preferred shares — 17,344,906
Common stock subject to repurchase 5,008,767 9,499,253
RSU and PRSUs 28,939,349 —
Convertible notes — 15,146,260
Total 90,487,042 408,295,877

Acquisitions (Tables)

Acquisitions (Tables)12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Schedule of Business Acquisitions, by AcquisitionThe following table summarizes the closing date fair value of the consideration transferred, reflecting the measurement period adjustments recorded at the acquisition date (in millions).
Fair value of
Cash paid $ 95.6
Less: consideration for settlement of pre-existing liability due to Spinnaker (5.1 )
Total value of consideration transferred $ 90.5
Acquisition-Date Estimated Useful Life
Tangible assets acquired and (liabilities) assumed:
Investments:
Fixed maturities available-for-sale, at fair value $ 45.7
Short term investments 5.0
Total investments $ 50.7
Cash and cash equivalents 16.9
Restricted cash 2.1
Accounts receivable, net 18.3
Reinsurance recoverable on paid and unpaid losses and LAE 116.3
Ceding commissions receivable 18.7
Prepaid reinsurance premiums 131.9
Other assets 0.6
Accrued expenses and other liabilities (6.6 )
Loss and loss adjustment expense reserves (93.3 )
Unearned premiums (132.1 )
Reinsurance premium payable (76.1 )
Net tangible assets acquired $ 47.4
Intangible assets acquired
Agency relationships 3.4 8 years
VOBA 0.1 2 years
State licenses 7.1 Indefinite
Goodwill 32.5
Total purchase price $ 90.5
Business Acquisition, Pro Forma InformationThe following unaudited pro forma financial information gives effect to the acquisition of Spinnaker as if it were consummated on January 1, 2019, including pro forma adjustments related to the valuation and allocation of the purchase price, primarily amortization of acquired intangible assets; stock-based compensation expense; alignment of accounting policies; to Spinnaker’s historical financial statements; and direct transaction costs reflected in the historical financial statements. This data is presented for informational purposes only and is not intended to represent or be indicative of the results of operations that would have been reported had the acquisition occurred on the assumed date. It should not be taken as representative of future results of operations of the Company (in millions):
Year Ended
Pro forma revenue $ 54.1
Pro forma net loss $ (136.6 )

Statutory Financial Informati_2

Statutory Financial Information (Tables)12 Months Ended
Dec. 31, 2021
Insurance [Abstract]
Statutory Accounting Practices DisclosureThe statutory net income and statutory capital and surplus of the Company’s insurance subsidiaries in accordance with regulatory accounting practices were as follows (in millions):
Statutory Net Income Capital Surplus
2021 2020 2021 2020
Statutory net income
U.S. insurance subsidiaries $ (0.5 ) $ 6.6 $ 131.8 $ 69.6
International insurance subsidiary (54.7 ) (16.7 ) 7.7 22.6
Statutory capital and surplus $ (55.2 ) $ (10.1 ) $ 139.5 $ 92.2

Description of Business and S_4

Description of Business and Summary of Significant Accounting Policies - Description of Business (Details) - state12 Months Ended
Dec. 31, 2021Aug. 31, 2020
Business Acquisition [Line Items]
Number of states licensed as insurance agency50
Number of states acting as managing general agent with underwriting and distributing of policies37
Reinsured risk, percentage12.00%
Spinnaker Insurance Company (Spinnaker)
Business Acquisition [Line Items]
Number of states with ability to write commercial and personal line products and licensed property casualty carrier50

Description of Business and S_5

Description of Business and Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable, allowance $ 0.4 $ 0.5

Description of Business and S_6

Description of Business and Summary of Significant Accounting Policies - Deferred Policy Acquisition Costs, net of Ceding Commissions (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Amortized deferred policy acquisition costs $ 13.9 $ 3.7

Description of Business and S_7

Description of Business and Summary of Significant Accounting Policies - Premium Deficiency (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Premium deficiency $ 0.3 $ 0

Description of Business and S_8

Description of Business and Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Depreciation expense $ 0.4 $ 0.4
Furniture, fixtures, and equipment
Property, Plant and Equipment [Line Items]
Useful life3 years
Computer equipment
Property, Plant and Equipment [Line Items]
Useful life2 years

Description of Business and S_9

Description of Business and Summary of Significant Accounting Policies - Capitalized Internal Use Software (Details)12 Months Ended
Dec. 31, 2021
Internal use software
Property, Plant and Equipment [Line Items]
Useful life5 years

Description of Business and _10

Description of Business and Summary of Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net earned premium $ 38.9 $ 17.1
Ceding commissions, net21.3 1.2
Agency commissions, net12.3 8.4
Policy fees10.9 2.6
MGA commissions, net2.6 12.8
Claims processing fees1.3 4.6
Other revenue3.6 3.8
Net investment income0.3 1.1
Total revenue $ 91.2 $ 51.6

Description of Business and _11

Description of Business and Summary of Significant Accounting Policies - Sales and Marketing (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Advertising costs $ 28.9 $ 12.2

Description of Business and _12

Description of Business and Summary of Significant Accounting Policies - Gain on Extinguishment of Debt (Details) - USD ($)12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Gain on extinguishment of debt $ 47,000,000 $ 0

Business Combinations - Reverse

Business Combinations - Reverse Recapitalization (Details) $ / shares in Units, $ in MillionsAug. 02, 2021USD ($)$ / sharessharesAug. 01, 2021USD ($)$ / sharessharesDec. 31, 2021USD ($)sharesDec. 31, 2020USD ($)shares
Business Acquisition [Line Items]
Sale of stock, number of shares issued in transaction (in shares) | shares55,000,000
Sale of stock, price per share (in dollars per share) | $ / shares $ 10
Sale of stock, consideration received on transaction $ 550
Stock issued during period, shares, business combination $ 453.9
Exchange ratio6.95433
Common stock, shares outstanding (in shares) | shares559,731,226 565,031,129 92,547,013
Proceeds from reverse capitalization, gross $ 587.7
Cash - PIPE550 $ 550
Cash in trust, net of redemptions37.7 37.7
Cash used for repurchase of common stock95 95
Transaction costs and advisory fees $ 42.4 42.4
Stock converted, reverse recapitalization (in shares) | shares495,242,606
Proceeds from the exercise of preferred stock warrants29 $ 0
Preferred stock warrant liabilities
Business Acquisition [Line Items]
Proceeds from the exercise of preferred stock warrants $ 29
Old Hippo common stock
Business Acquisition [Line Items]
Repurchase of common stock $ 95
Repurchase of common stock (in shares) | shares9,500,000
Common stock, shares outstanding (in shares) | shares9,500,000
Founder Shares Class B | Reinvent Sponsor Z LLC | Reinvent Technology Partners Z
Business Acquisition [Line Items]
Stock issued during period, shares, business combination (in shares) | shares5,750,000
Stock issued during period, shares, business combination $ 25,000
Exchange ratio1
Common Class A
Business Acquisition [Line Items]
Common stock, shares outstanding (in shares) | shares23,000,000
Common Class A | Reinvent Technology Partners Z
Business Acquisition [Line Items]
Repurchase of common stock $ 192.6
Repurchase of common stock (in shares) | shares19,261,380
Stock issued during period, shares, business combination (in shares) | shares3,738,620
Exchange ratio1
Repurchase of common stock (in dollars per share) | $ / shares $ 10
Common Class A | Reinvent Sponsor Z LLC | Reinvent Technology Partners Z
Business Acquisition [Line Items]
Stock issued during period, shares, business combination (in shares) | shares5,750,000

Business Combinations - Element

Business Combinations - Elements of the Business Combination (Details) - USD ($) $ in MillionsAug. 02, 2021Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Cash in trust, net of redemptions $ 37.7 $ 37.7
Cash - PIPE550 550
Less: Cash used for repurchase of common stock(95)(95)
Less: transaction costs and advisory fees $ (42.4)(42.4)
Net cash received from the Business Combination and PIPE investment450.3
Net assets acquired from the Business Combination3.6
Total $ 453.9

Business Combinations - Issuanc

Business Combinations - Issuance of Common Stock Related to Business Combination (Details)Aug. 02, 2021sharesAug. 01, 2021sharesDec. 31, 2021sharesDec. 31, 2020shares
Business Acquisition [Line Items]
Common stock, shares outstanding (in shares)559,731,226 565,031,129 92,547,013
PIPE Shares (in shares)55,000,000
Business Combination and PIPE shares which converted to Hippo Holding common stock (in shares)64,488,620
Old Hippo shares, net of repurchase (in shares)495,242,606
Exchange Ratio6.95433
Common Class A
Business Acquisition [Line Items]
Common stock, shares outstanding (in shares)23,000,000
Old Hippo common stock
Business Acquisition [Line Items]
Common stock, shares outstanding (in shares)9,500,000
Less: Repurchase of common stock (in shares)(9,500,000)
Reinvent Technology Partners Z | Common Class A
Business Acquisition [Line Items]
Less: Repurchase of common stock (in shares)(19,261,380)
Stock issued during period, shares, business combination (in shares)3,738,620
Exchange Ratio1
Reinvent Technology Partners Z | Reinvent Sponsor Z LLC | Common Class A
Business Acquisition [Line Items]
Stock issued during period, shares, business combination (in shares)5,750,000

Investments - Fixed Maturities

Investments - Fixed Maturities Securities and Short-Term Investments (Details) - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost $ 55.6 $ 55.9
Unrealized Gains0 0.1
Unrealized Losses(0.7)0
Fair Value54.9 56
Fair Value9.1 0
Amortized Cost64.7
Unrealized Gains0
Unrealized Losses(0.7)
Total investments64 56
U.S. government and agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost9.3 10.1
Unrealized Gains0 0
Unrealized Losses0 0
Fair Value9.3 10.1
Amortized Cost9.1
Unrealized Gains0
Unrealized Losses0
Fair Value9.1
States, and other territories
Debt Securities, Available-for-sale [Line Items]
Amortized Cost5.8 5.1
Unrealized Gains0 0
Unrealized Losses(0.1)0
Fair Value5.7 5.1
Corporate securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost17.3 17.4
Unrealized Gains0 0
Unrealized Losses(0.2)0
Fair Value17.1 17.4
Foreign securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost0.9 0.8
Unrealized Gains0 0
Unrealized Losses0 0
Fair Value0.9 0.8
Residential mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost10.8 12.9
Unrealized Gains0 0
Unrealized Losses(0.2)0
Fair Value10.6 12.9
Commercial mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost4.8 5.4
Unrealized Gains0 0.1
Unrealized Losses(0.1)0
Fair Value4.7 5.5
Asset backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost6.7 4.2
Unrealized Gains0 0
Unrealized Losses(0.1)0
Fair Value $ 6.6 $ 4.2

Investments - Narrative (Detail

Investments - Narrative (Details)12 Months Ended
Dec. 31, 2021USD ($)securityDec. 31, 2020USD ($)
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, number of positions | security0
Other than temporary impairment losses, investments | $ $ 0 $ 0

Investments - Contractual Matur

Investments - Contractual Maturity (Details) - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020
Amortized Cost
One year or less $ 10.5
After one year through five years18.3
After five years4.5
Amortized Cost55.6 $ 55.9
Fair Value
One year or less10.5
After one year through five years18.1
After five years4.4
Fair Value54.9 56
Residential mortgage-backed securities
Amortized Cost
Securities10.8
Amortized Cost10.8 12.9
Fair Value
Securities10.6
Fair Value10.6 12.9
Commercial mortgage-backed securities
Amortized Cost
Securities4.8
Amortized Cost4.8 5.4
Fair Value
Securities4.7
Fair Value4.7 5.5
Asset backed securities
Amortized Cost
Securities6.7
Amortized Cost6.7 4.2
Fair Value
Securities6.6
Fair Value $ 6.6 $ 4.2

Investments - Net Investment In

Investments - Net Investment Income (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Fixed maturities income $ 0.4 $ 1.1
Short-term investments0 0
Total gross investment income0.4 1.1
Investment expenses(0.1)0
Net investment income $ 0.3 $ 1.1

Investments - Special Deposits

Investments - Special Deposits (Details) - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost $ 8.4 $ 8.4
Fair Value8.6 8.4
New York
Debt Securities, Available-for-sale [Line Items]
Amortized Cost3.2 3.1
Fair Value3.2 3.1
Illinois
Debt Securities, Available-for-sale [Line Items]
Amortized Cost1.9 1.6
Fair Value1.9 1.6
Colorado
Debt Securities, Available-for-sale [Line Items]
Amortized Cost1.4 1.5
Fair Value1.5 1.5
Virginia
Debt Securities, Available-for-sale [Line Items]
Amortized Cost0.3 0.4
Fair Value0.4 0.4
North Carolina
Debt Securities, Available-for-sale [Line Items]
Amortized Cost0.3 0.3
Fair Value0.3 0.3
New Mexico
Debt Securities, Available-for-sale [Line Items]
Amortized Cost0.3 0.4
Fair Value0.3 0.4
Vermont
Debt Securities, Available-for-sale [Line Items]
Amortized Cost0.3 0.3
Fair Value0.3 0.3
Florida
Debt Securities, Available-for-sale [Line Items]
Amortized Cost0.3 0.3
Fair Value0.3 0.3
Nevada
Debt Securities, Available-for-sale [Line Items]
Amortized Cost0.2 0.4
Fair Value0.2 0.4
Massachusetts
Debt Securities, Available-for-sale [Line Items]
Amortized Cost0.1 0.1
Fair Value0.1 0.1
Georgia
Debt Securities, Available-for-sale [Line Items]
Amortized Cost0.1 0
Fair Value $ 0.1 $ 0

Cash, Cash Equivalents, and R_3

Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020Dec. 31, 2019
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents $ 775.6 $ 452.3
Restricted cash43.1 40.1
Total cash, cash equivalents, and restricted cash818.7 492.4 $ 42
Cash
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents219.2 56.7
Money market funds
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents556.4 372.1
Treasury bills
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents0 23.5
Fiduciary assets
Cash and Cash Equivalents [Line Items]
Restricted cash25 12.1
Letters of credit and cash on deposit
Cash and Cash Equivalents [Line Items]
Restricted cash $ 18.1 $ 28

Fair Value Measurement - Assets

Fair Value Measurement - Assets and Liabilities (Details) - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020
Financial assets:
Cash equivalents $ 556.4 $ 395.6
Fixed maturities available-for-sale54.9 56
Short-term investments9.1 0
Total financial assets620.4 451.6
Financial liabilities:
Derivative liability on convertible promissory notes113.3
Contingent consideration liability11.6 12
Warrants liabilities0 22.9
Total financial liabilities15.9 148.2
Public warrants
Financial liabilities:
Warrants liabilities2.2
Private placement warrants
Financial liabilities:
Warrants liabilities2.1
Preferred stock warrant liabilities
Financial liabilities:
Warrants liabilities22.9
Level 1
Financial assets:
Cash equivalents556.4 395.6
Fixed maturities available-for-sale9.3 10.1
Total financial assets565.7 405.7
Financial liabilities:
Derivative liability on convertible promissory notes0
Contingent consideration liability0 0
Total financial liabilities2.2 0
Level 1 | Public warrants
Financial liabilities:
Warrants liabilities2.2
Level 1 | Private placement warrants
Financial liabilities:
Warrants liabilities0
Level 1 | Preferred stock warrant liabilities
Financial liabilities:
Warrants liabilities0
Level 2
Financial assets:
Cash equivalents0 0
Fixed maturities available-for-sale45.6 45.9
Total financial assets54.7 45.9
Financial liabilities:
Derivative liability on convertible promissory notes0
Contingent consideration liability0 0
Total financial liabilities2.1 0
Level 2 | Public warrants
Financial liabilities:
Warrants liabilities0
Level 2 | Private placement warrants
Financial liabilities:
Warrants liabilities2.1
Level 2 | Preferred stock warrant liabilities
Financial liabilities:
Warrants liabilities0
Level 3
Financial assets:
Cash equivalents0 0
Fixed maturities available-for-sale0 0
Total financial assets0 0
Financial liabilities:
Derivative liability on convertible promissory notes113.3
Contingent consideration liability11.6 12
Total financial liabilities11.6 148.2
Level 3 | Public warrants
Financial liabilities:
Warrants liabilities0
Level 3 | Private placement warrants
Financial liabilities:
Warrants liabilities0
Level 3 | Preferred stock warrant liabilities
Financial liabilities:
Warrants liabilities22.9
U.S. government and agencies
Financial assets:
Fixed maturities available-for-sale9.3 10.1
Short-term investments9.1
U.S. government and agencies | Level 1
Financial assets:
Fixed maturities available-for-sale9.3 10.1
Short-term investments0
U.S. government and agencies | Level 2
Financial assets:
Fixed maturities available-for-sale0 0
Short-term investments9.1
U.S. government and agencies | Level 3
Financial assets:
Fixed maturities available-for-sale0 0
Short-term investments0
States, and other territories
Financial assets:
Fixed maturities available-for-sale5.7 5.1
States, and other territories | Level 1
Financial assets:
Fixed maturities available-for-sale0 0
States, and other territories | Level 2
Financial assets:
Fixed maturities available-for-sale5.7 5.1
States, and other territories | Level 3
Financial assets:
Fixed maturities available-for-sale0 0
Corporate securities
Financial assets:
Fixed maturities available-for-sale17.1 17.4
Corporate securities | Level 1
Financial assets:
Fixed maturities available-for-sale0 0
Corporate securities | Level 2
Financial assets:
Fixed maturities available-for-sale17.1 17.4
Corporate securities | Level 3
Financial assets:
Fixed maturities available-for-sale0 0
Foreign securities
Financial assets:
Fixed maturities available-for-sale0.9 0.8
Foreign securities | Level 1
Financial assets:
Fixed maturities available-for-sale0 0
Foreign securities | Level 2
Financial assets:
Fixed maturities available-for-sale0.9 0.8
Foreign securities | Level 3
Financial assets:
Fixed maturities available-for-sale0 0
Residential mortgage-backed securities
Financial assets:
Fixed maturities available-for-sale10.6 12.9
Residential mortgage-backed securities | Level 1
Financial assets:
Fixed maturities available-for-sale0 0
Residential mortgage-backed securities | Level 2
Financial assets:
Fixed maturities available-for-sale10.6 12.9
Residential mortgage-backed securities | Level 3
Financial assets:
Fixed maturities available-for-sale0 0
Commercial mortgage-backed securities
Financial assets:
Fixed maturities available-for-sale4.7 5.5
Commercial mortgage-backed securities | Level 1
Financial assets:
Fixed maturities available-for-sale0 0
Commercial mortgage-backed securities | Level 2
Financial assets:
Fixed maturities available-for-sale4.7 5.5
Commercial mortgage-backed securities | Level 3
Financial assets:
Fixed maturities available-for-sale0 0
Asset backed securities
Financial assets:
Fixed maturities available-for-sale6.6 4.2
Asset backed securities | Level 1
Financial assets:
Fixed maturities available-for-sale0 0
Asset backed securities | Level 2
Financial assets:
Fixed maturities available-for-sale6.6 4.2
Asset backed securities | Level 3
Financial assets:
Fixed maturities available-for-sale0 0
Money market funds
Financial assets:
Cash equivalents556.4 372.1
Money market funds | Level 1
Financial assets:
Cash equivalents556.4 372.1
Money market funds | Level 2
Financial assets:
Cash equivalents0 0
Money market funds | Level 3
Financial assets:
Cash equivalents $ 0 0
Treasury bills
Financial assets:
Cash equivalents23.5
Treasury bills | Level 1
Financial assets:
Cash equivalents23.5
Treasury bills | Level 2
Financial assets:
Cash equivalents0
Treasury bills | Level 3
Financial assets:
Cash equivalents $ 0

Fair Value Measurement - Change

Fair Value Measurement - Changes in Fair Value (Details) - USD ($) $ in Millions5 Months Ended12 Months Ended
Dec. 31, 2021Dec. 31, 2021Dec. 31, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in fair value $ (10.3) $ 0
Contingent Consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liability, beginning balance12 13.8
Settlement/Payments(3.9)(5.2)
Changes in fair value3.5 3.4
Liability, ending balance $ 11.6 11.6 12
Embedded Derivative Liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liability, beginning balance113.3 0
Initial measurement of new derivative2.8 107.2
Changes in fair value61.4 6.1
Settlement/Payments(177.5)0
Liability, ending balance0 0 113.3
Preferred Stock Warrant
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liability, beginning balance22.9 6.7
Changes in fair value121.6 16.2
Settlement/Payments(144.5)0
Liability, ending balance0 0 $ 22.9
Warrant liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liability, beginning balance0
Initial measurement of new derivative14.6
Changes in fair value(10.3)
Liability, ending balance $ 4.3 $ 4.3

Fair Value Measurement - Narrat

Fair Value Measurement - Narrative (Details)Aug. 02, 2021Dec. 31, 2021
Minimum
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Convertible promissory notes, conversion period0 years
Maximum
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Convertible promissory notes, conversion period2 years 7 months 6 days
Discount rate | Income approach
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Convertible promissory notes, measurement input0.10

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Goodwill [Roll Forward]
Beginning balance $ 47.8 $ 1.9
Additions from acquisitions5.2 45.9
Other adjustments0.5
Ending balance $ 53.5 $ 47.8

Intangible Assets - Components

Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount $ 10.5 $ 7.1
Accumulated Amortization(11.2)(5.5)
Gross Carrying Amount43.4 39.4
Net Carrying Amount21.7
Net Carrying Amount32.2 33.9
Amortization expense related to intangible assets $ 5.7 3.7
Agency and carrier relationships
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Useful Life Remaining (in years)6 years 10 months 24 days
Gross Carrying Amount $ 13.5 13.5
Accumulated Amortization(1.7)(0.1)
Net Carrying Amount $ 11.8 13.4
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Useful Life Remaining (in years)3 years 2 months 12 days
Gross Carrying Amount $ 13.7 13.2
Accumulated Amortization(6)(3.8)
Net Carrying Amount $ 7.7 9.4
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Useful Life Remaining (in years)3 months 18 days
Gross Carrying Amount $ 3.6 3.6
Accumulated Amortization(2.7)(1.4)
Net Carrying Amount $ 0.9 2.2
VOBA
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Useful Life Remaining (in years)8 months 12 days
Gross Carrying Amount $ 0.1 0.1
Accumulated Amortization $ (0.1)
Net Carrying Amount0.1
Other
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Useful Life Remaining (in years)6 years 6 months
Gross Carrying Amount $ 2 1.9
Accumulated Amortization(0.7)(0.2)
Net Carrying Amount $ 1.3 $ 1.7

Intangible Assets - Amortizatio

Intangible Assets - Amortization Expense for Intangible Assets (Details) $ in MillionsDec. 31, 2021USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022 $ 5.2
20234.2
20244
20252.4
20261.7
Thereafter4.2
Net Carrying Amount $ 21.7

Capitalized Internal Use Soft_3

Capitalized Internal Use Software (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Research and Development [Abstract]
Capitalized internal use software $ 34.5 $ 18.4
Less: accumulated amortization(8.6)(3.7)
Total capitalized internal use software25.9 14.7
Amortization expense $ 4.9 $ 2.6

Accrued Expenses and Other Li_3

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020
Payables and Accruals [Abstract]
Claim payments outstanding $ 23.2 $ 9.9
Deferred revenue11.2 1.7
Advances from customers8.7 4.4
Employee related accruals8.5 5
Accrued licenses and taxes5.8 2.5
Premium refund liability4.8 2.6
Warrant liability4.3 0
Fiduciary liabilities3.7 5
Other13.6 12.1
Total accrued expenses and other liabilities $ 83.8 $ 43.2

Loss and Loss Adjustment Expe_3

Loss and Loss Adjustment Expense Reserves - Reconciliation of Losses and Loss Adjustment Expenses (Details) - USD ($)12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of beginning of the period $ 105,100,000 $ 0
Reinsurance recoverables on unpaid losses(92,100,000)0
Reserve for losses and LAE, net of reinsurance recoverables as of beginning of the period13,000,000 0
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year85,000,000 25,300,000
Prior years(600,000)0
Total incurred84,400,000 25,300,000
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year43,600,000 17,000,000
Prior year9,800,000 300,000
Total paid53,400,000 17,300,000
Reserve for losses and LAE, net of reinsurance recoverables at end of period44,000,000 13,000,000
Add: Reinsurance recoverables on unpaid losses and LAE at end of period216,800,000 92,100,000
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of end of the period260,800,000 105,100,000
Hurricane Sally
Add: Incurred losses and LAE, net of reinsurance, related to:
Prior years0
Prior years, gross6,200,000
Spinnaker Insurance Company (Spinnaker)
Deduct: Loss and LAE payments, net of reinsurance, related to:
Reserve for losses and LAE, net of reinsurance recoverables acquired from Spinnaker $ 0 $ 5,000,000

Loss and Loss Adjustment Expe_4

Loss and Loss Adjustment Expense Reserves - Incurred and Paid Claims Development (Details) $ in Millions12 Months Ended
Dec. 31, 2021USD ($)SegmentYearDec. 31, 2020USD ($)Dec. 31, 2019USD ($)Dec. 31, 2018USD ($)Dec. 31, 2017USD ($)Dec. 31, 2016USD ($)Dec. 31, 2015USD ($)
Insurance [Abstract]
Number of operating segment | Segment1
Number of reportable segment | Segment1
Liability for Claims and Claims Adjustment Expense [Line Items]
Total incurred Loss and Loss Adjustment Expenses, net $ 122.1
IBNR $ 34.1
Cumulative Number of Reported Claims | Year91,835
2015
Liability for Claims and Claims Adjustment Expense [Line Items]
Total incurred Loss and Loss Adjustment Expenses, net $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
IBNR $ 0
Cumulative Number of Reported Claims | Year7
2016
Liability for Claims and Claims Adjustment Expense [Line Items]
Total incurred Loss and Loss Adjustment Expenses, net $ 1.8 1.8 1.8 1.9 1.9 $ 2.5
IBNR $ 0
Cumulative Number of Reported Claims | Year715
2017
Liability for Claims and Claims Adjustment Expense [Line Items]
Total incurred Loss and Loss Adjustment Expenses, net $ 4 4 4 4.4 $ 5.2
IBNR $ 0
Cumulative Number of Reported Claims | Year3,072
2018
Liability for Claims and Claims Adjustment Expense [Line Items]
Total incurred Loss and Loss Adjustment Expenses, net $ 7.2 7.2 7.2 $ 7.8
IBNR $ 0.5
Cumulative Number of Reported Claims | Year5,882
2019
Liability for Claims and Claims Adjustment Expense [Line Items]
Total incurred Loss and Loss Adjustment Expenses, net $ 4.7 4.9 $ 4.8
IBNR $ 0
Cumulative Number of Reported Claims | Year14,952
2020
Liability for Claims and Claims Adjustment Expense [Line Items]
Total incurred Loss and Loss Adjustment Expenses, net $ 27.7 $ 28.1
IBNR $ 1.5
Cumulative Number of Reported Claims | Year28,304
2021
Liability for Claims and Claims Adjustment Expense [Line Items]
Total incurred Loss and Loss Adjustment Expenses, net $ 76.7
IBNR $ 32.1
Cumulative Number of Reported Claims | Year38,903

Loss and Loss Adjustment Expe_5

Loss and Loss Adjustment Expense Reserves - Cumulative Paid Losses and LAE (Details) - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017Dec. 31, 2016Dec. 31, 2015
Liability for Claims and Claims Adjustment Expense [Line Items]
Total paid losses and LAE, net $ 78.1
Total unpaid loss and LAE reserves, net44
Ceded unpaid loss and LAE216.8 $ 92.1 $ 0
Gross unpaid loss and LAE260.8 105.1 0
2015
Liability for Claims and Claims Adjustment Expense [Line Items]
Total paid losses and LAE, net0 0 0 $ 0 $ 0 $ 0 $ 0
2016
Liability for Claims and Claims Adjustment Expense [Line Items]
Total paid losses and LAE, net1.8 1.8 1.8 1.9 1.8 $ 1.2
2017
Liability for Claims and Claims Adjustment Expense [Line Items]
Total paid losses and LAE, net4 4 4 4 $ 3
2018
Liability for Claims and Claims Adjustment Expense [Line Items]
Total paid losses and LAE, net5.7 5.7 5.7 $ 5.3
2019
Liability for Claims and Claims Adjustment Expense [Line Items]
Total paid losses and LAE, net4.6 4.4 $ 3.2
2020
Liability for Claims and Claims Adjustment Expense [Line Items]
Total paid losses and LAE, net26.8 $ 17.1
2021
Liability for Claims and Claims Adjustment Expense [Line Items]
Total paid losses and LAE, net $ 35.2

Loss and Loss Adjustment Expe_6

Loss and Loss Adjustment Expense Reserves - Historical Claim Duration (Details) - Property and CasualtyDec. 31, 2021
Years [Line Items]
181.00%
212.00%
33.00%
43.00%
52.00%

Loss and Loss Adjustment Expe_7

Loss and Loss Adjustment Expense Reserves - Reconciliation of Net Incurred and Paid Loss (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Incurred
Development table $ 76.7 $ 28.1
Unallocated loss adjustment expense8.3 2.2
Other0
Loss and LAE of Spinnaker prior to the acquisition(5)
Current year85 25.3
Paid
Development table35.2 17.1
Unallocated loss adjustment expense8.3 (2.1)
Other0.1
Loss and LAE of Spinnaker prior to the acquisition2
Current year $ 43.6 $ 17

Reinsurance - Narrative (Detail

Reinsurance - Narrative (Details)12 Months Ended
Dec. 31, 2021USD ($)reinsurerDec. 31, 2020USD ($)
Effects of Reinsurance [Line Items]
Number of third-party reinsures | reinsurer9
Reinsured risk, percentage12.00%
Loss on uncollectible accounts in period | $ $ 0 $ 0
Term-based agreement
Effects of Reinsurance [Line Items]
Number of third-party reinsures | reinsurer2
Percentage attributable to program33.00%
Agreement term3 years
XOL
Effects of Reinsurance [Line Items]
Excess retention, year return period, ratio0.004
XOL | Maximum
Effects of Reinsurance [Line Items]
Excess retention, percentage4.00%
Per-risk Reinsurance | Minimum
Effects of Reinsurance [Line Items]
Excess retention, amount | $ $ 500,000
Proportional and XOL | Minimum
Effects of Reinsurance [Line Items]
Ceded risk, percentage80.00%
Proportional and XOL | Maximum
Effects of Reinsurance [Line Items]
Ceded risk, percentage100.00%

Reinsurance - Ceded Reinsurance

Reinsurance - Ceded Reinsurance (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Loss and LAE Reserve
Direct $ 253.4 $ 102.7
Assumed7.4 2.4
Gross260.8 105.1
Ceded(216.8)(92.1)
Net44 13
Unearned premiums
Direct246.6 143.7
Assumed6.5 6.6
Gross253.1 150.3
Ceded(231.6)(129.4)
Net21.5 20.9
Written premiums
Direct474 90
Assumed3.3 26.1
Gross477.3 116.1
Ceded(434.8)(78.4)
Net42.5 37.7
Earned premiums
Direct364.7 88.7
Assumed9.8 9.3
Gross374.5 98
Ceded(335.6)(80.9)
Net38.9 17.1
Loss and LAE incurred
Direct498.5 93.6
Assumed16.9 13.3
Gross515.4 106.9
Ceded(431)(81.6)
Net $ 84.4 $ 25.3

Reinsurance - Amount Recoverabl

Reinsurance - Amount Recoverable From Reinsurers (Details) - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020Dec. 31, 2019
Insurance [Abstract]
Reinsurance recoverable on paid loss $ 50.1 $ 42
Ceded unpaid loss and LAE216.8 92.1 $ 0
Total reinsurance recoverable $ 266.9 $ 134.1

Reinsurance - Unsecured Reinsur

Reinsurance - Unsecured Reinsurance Recoverable and Prepaid Reinsurance Premium Balances (Details) - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020
Ceded Credit Risk [Line Items]
Unsecured reinsurance recoverable and prepaid reinsurance premium $ 321.1 $ 162.5
Other reinsurers
Ceded Credit Risk [Line Items]
Unsecured reinsurance recoverable and prepaid reinsurance premium86.9 28.4
A+ | Everest Insurance Company
Ceded Credit Risk [Line Items]
Unsecured reinsurance recoverable and prepaid reinsurance premium65.7 4.2
A+ | Transatlantic Reinsurance Company
Ceded Credit Risk [Line Items]
Unsecured reinsurance recoverable and prepaid reinsurance premium46.3 28.8
A+ | Renaissance Reinsurance U.S. Inc.
Ceded Credit Risk [Line Items]
Unsecured reinsurance recoverable and prepaid reinsurance premium28.9 5.5
A+ | Munich Reinsurance America, Inc.
Ceded Credit Risk [Line Items]
Unsecured reinsurance recoverable and prepaid reinsurance premium18.3 11.7
A | Validus Reinsurance (Switzerland) Ltd.
Ceded Credit Risk [Line Items]
Unsecured reinsurance recoverable and prepaid reinsurance premium57.5 22.6
A | Validus Reinsurance, Ltd.
Ceded Credit Risk [Line Items]
Unsecured reinsurance recoverable and prepaid reinsurance premium9.6 46.9
A++ | General Reinsurance Corporation
Ceded Credit Risk [Line Items]
Unsecured reinsurance recoverable and prepaid reinsurance premium7.9 14.4
Rated
Ceded Credit Risk [Line Items]
Unsecured reinsurance recoverable and prepaid reinsurance premium $ 234.2 $ 134.1

Geographical Breakdown of Gro_3

Geographical Breakdown of Gross Written Premium (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Gross Written Premium [Line Items]
Amount $ 477.3 $ 116.1
Geographic Concentration Risk | Gross written premium
Gross Written Premium [Line Items]
Concentration risk, percentage100.00%100.00%
Texas
Gross Written Premium [Line Items]
Amount $ 139.2 $ 43.9
Texas | Geographic Concentration Risk | Gross written premium
Gross Written Premium [Line Items]
Concentration risk, percentage29.20%37.80%
California
Gross Written Premium [Line Items]
Amount $ 85.2 $ 10.4
California | Geographic Concentration Risk | Gross written premium
Gross Written Premium [Line Items]
Concentration risk, percentage17.90%9.00%
Florida
Gross Written Premium [Line Items]
Amount $ 26.8 $ 7.3
Florida | Geographic Concentration Risk | Gross written premium
Gross Written Premium [Line Items]
Concentration risk, percentage5.60%6.30%
Georgia
Gross Written Premium [Line Items]
Amount $ 22 $ 4.7
Georgia | Geographic Concentration Risk | Gross written premium
Gross Written Premium [Line Items]
Concentration risk, percentage4.60%4.00%
Illinois
Gross Written Premium [Line Items]
Amount $ 19.1 $ 4.9
Illinois | Geographic Concentration Risk | Gross written premium
Gross Written Premium [Line Items]
Concentration risk, percentage4.00%4.20%
Colorado
Gross Written Premium [Line Items]
Amount $ 13.6 $ 2.5
Colorado | Geographic Concentration Risk | Gross written premium
Gross Written Premium [Line Items]
Concentration risk, percentage2.80%2.20%
Missouri
Gross Written Premium [Line Items]
Amount $ 13 $ 3.4
Missouri | Geographic Concentration Risk | Gross written premium
Gross Written Premium [Line Items]
Concentration risk, percentage2.70%2.90%
Arizona
Gross Written Premium [Line Items]
Amount $ 11.4 $ 1.6
Arizona | Geographic Concentration Risk | Gross written premium
Gross Written Premium [Line Items]
Concentration risk, percentage2.40%1.40%
Ohio
Gross Written Premium [Line Items]
Amount $ 10.5 $ 3
Ohio | Geographic Concentration Risk | Gross written premium
Gross Written Premium [Line Items]
Concentration risk, percentage2.20%2.60%
New Jersey
Gross Written Premium [Line Items]
Amount $ 10.4 $ 3.4
New Jersey | Geographic Concentration Risk | Gross written premium
Gross Written Premium [Line Items]
Concentration risk, percentage2.20%2.90%
Other
Gross Written Premium [Line Items]
Amount $ 126.1 $ 31
Other | Geographic Concentration Risk | Gross written premium
Gross Written Premium [Line Items]
Concentration risk, percentage26.40%26.70%

Convertible Promissory Notes _2

Convertible Promissory Notes and Derivative Liability (Details)Aug. 02, 2021USD ($)sharesDec. 31, 2021USD ($)Dec. 31, 2020USD ($)Feb. 21, 2021USD ($)
Debt Instrument [Line Items]
Convertible promissory notes $ 0 $ 273,000,000
Derivative liability0 113,300,000
Gain on extinguishment of debt $ 47,000,000 0
Convertible promissory note
Debt Instrument [Line Items]
Face amount $ 377,500,000 $ 7,000,000
Interest rate2.50%
Fair value of embedded derivatives $ 110,000,000
Threshold percentage of stock price trigger90.00%
Convertible promissory notes $ 304,000,000
Deferred discount and issuance costs86,900,000
Derivative liability177,500,000
Gain on extinguishment of debt $ 47,000,000
Convertible promissory note | Common Stock
Debt Instrument [Line Items]
Convertible, number of equity instruments (in shares) | shares43,449,312
Convertible promissory note | Conversion event has not occurred
Debt Instrument [Line Items]
Interest rate, increase (decrease)2.50%
Interest rate, stated percentage, maximum after rate increase7.50%
Convertible promissory note | Conversion event has not occurred, 15 month after
Debt Instrument [Line Items]
Interest rate, stated percentage, maximum after rate increase5.00%
Interest rate adjustment, period after issuance15 months
Convertible promissory note | Conversion event has not occurred, 21 month after
Debt Instrument [Line Items]
Interest rate, stated percentage, maximum after rate increase5.00%
Interest rate adjustment, period after issuance21 months

Public Warrants and Private P_2

Public Warrants and Private Placement Warrants (Details) - Reinvent Technology Partners ZNov. 30, 2020$ / sharesshares
Public warrants
Class of Warrant or Right [Line Items]
Warrant shares outstanding (in shares) | shares4,600,000
Private placement warrants
Class of Warrant or Right [Line Items]
Warrant shares outstanding (in shares) | shares4,400,000
Common stock warrant
Class of Warrant or Right [Line Items]
Conversion ratio1
Common Class A | Public warrants
Class of Warrant or Right [Line Items]
Exercise price (in dollars per share) | $ / shares $ 11.50
Common Class A | Private placement warrants
Class of Warrant or Right [Line Items]
Exercise price (in dollars per share) | $ / shares $ 11.50

Commitment and Contingencies -

Commitment and Contingencies - Narrative (Details) $ in Millions12 Months Ended
Dec. 31, 2021USD ($)Dec. 31, 2020USD ($)Nov. 19, 2019causes
Loss Contingencies [Line Items]
Rent expense $ 3.1 $ 2.8
Operating leases, future minimum payments due $ 29
Purchase obligation, term3 years
Purchase obligation $ 34.6
Pending litigation | Litigation, hippo and chief executive officer named defendants
Loss Contingencies [Line Items]
Loss contingency, pending causes of action, number | causes6
Pending litigation | Litigation, hippo named defendant only
Loss Contingencies [Line Items]
Loss contingency, pending causes of action, number | causes2
Texas
Loss Contingencies [Line Items]
Operating leases, future minimum payments due $ 8

Commitment and Contingencies _2

Commitment and Contingencies - Future Minimum Rental Payments (Details) $ in MillionsDec. 31, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022 $ 4.1
20235.1
20245.2
20255.2
20264.2
Thereafter5.2
Total $ 29

Convertible Preferred Stock - N

Convertible Preferred Stock - Narrative (Details) - sharesAug. 02, 2021Dec. 31, 2021Aug. 31, 2021Oct. 31, 2018Mar. 31, 2017
Preferred A-2 Stock
Temporary Equity [Line Items]
Warrant shares outstanding (in shares)28,662
Preferred C-1 Stock
Temporary Equity [Line Items]
Warrant shares outstanding (in shares)2,465,454
Convertible Preferred Stock
Temporary Equity [Line Items]
Issuances during period (in shares)0
Number of securities called by warrants or rights (in shares)2,494,116
Common Stock
Temporary Equity [Line Items]
Convertible preferred stock conversion (in shares)323,232,349
Number of securities called by each warrants or rights (in shares)17,344,906

Convertible Preferred Stock - C

Convertible Preferred Stock - Components (Details) - USD ($) $ / shares in Units, $ in MillionsDec. 31, 2021Dec. 31, 2020Dec. 31, 2019
Temporary Equity [Line Items]
Authorized Shares (in shares)10,000,000 323,232,460
Shares Issued (in shares)0 305,887,443
Shares Outstanding (in shares)0 305,887,443 250,604,066
Net Carrying Value $ 0 $ 344.8 $ 190.3
Liquidation Preference $ 0 $ 359.4
Preferred A-1 Stock
Temporary Equity [Line Items]
Issuance Price Per Share (in dollars per share) $ 0.56965
Authorized Shares (in shares)40,959,815
Shares Issued (in shares)40,959,815
Shares Outstanding (in shares)40,959,815
Net Carrying Value $ 3.4
Liquidation Preference $ 3.4
Preferred A-2 Stock
Temporary Equity [Line Items]
Issuance Price Per Share (in dollars per share) $ 1.57432
Authorized Shares (in shares)48,790,097
Shares Issued (in shares)48,590,772
Shares Outstanding (in shares)48,590,772
Net Carrying Value $ 10.9
Liquidation Preference $ 11
Preferred B Stock
Temporary Equity [Line Items]
Issuance Price Per Share (in dollars per share) $ 3.59757
Authorized Shares (in shares)48,326,627
Shares Issued (in shares)48,326,627
Shares Outstanding (in shares)48,326,627
Net Carrying Value $ 24.9
Liquidation Preference $ 25
Preferred C Stock
Temporary Equity [Line Items]
Issuance Price Per Share (in dollars per share) $ 7.04471
Authorized Shares (in shares)69,101,902
Shares Issued (in shares)69,101,895
Shares Outstanding (in shares)69,101,895
Net Carrying Value $ 56.1
Liquidation Preference $ 70
Preferred C-1 Stock
Temporary Equity [Line Items]
Issuance Price Per Share (in dollars per share) $ 11.74119
Authorized Shares (in shares)17,145,581
Shares Issued (in shares)0
Shares Outstanding (in shares)0
Net Carrying Value $ 0
Liquidation Preference $ 0
Preferred D Stock
Temporary Equity [Line Items]
Issuance Price Per Share (in dollars per share) $ 15.16420
Authorized Shares (in shares)45,860,183
Shares Issued (in shares)45,860,183
Shares Outstanding (in shares)45,860,183
Net Carrying Value $ 99.8
Liquidation Preference $ 100
Preferred E Stock
Temporary Equity [Line Items]
Issuance Price Per Share (in dollars per share) $ 19.66420
Authorized Shares (in shares)53,048,255
Shares Issued (in shares)53,048,151
Shares Outstanding (in shares)53,048,151
Net Carrying Value $ 149.7
Liquidation Preference $ 150

Convertible Preferred Stock - A

Convertible Preferred Stock - Assumptions (Details)Dec. 31, 2020
Preferred Stock Warrant | Minimum
Temporary Equity [Line Items]
Expected term (in years)1 year 9 months 18 days
Preferred Stock Warrant | Maximum
Temporary Equity [Line Items]
Expected term (in years)6 years 2 months 12 days
Preferred Stock Warrant | Expected volatility | Minimum
Temporary Equity [Line Items]
Measurement input29
Preferred Stock Warrant | Expected volatility | Maximum
Temporary Equity [Line Items]
Measurement input40.7
Preferred Stock Warrant | Risk-free interest rate | Minimum
Temporary Equity [Line Items]
Measurement input0.1
Preferred Stock Warrant | Risk-free interest rate | Maximum
Temporary Equity [Line Items]
Measurement input0.5
Preferred Stock Warrant | Expected dividend yield
Temporary Equity [Line Items]
Measurement input0
Preferred A-2 Stock | Fair value
Temporary Equity [Line Items]
Measurement input18.25
Preferred A-2 Stock | Exercise price
Temporary Equity [Line Items]
Measurement input1.57
Preferred C-1 Stock | Fair value
Temporary Equity [Line Items]
Measurement input20.09
Preferred C-1 Stock | Exercise price
Temporary Equity [Line Items]
Measurement input11.74

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($)Aug. 02, 2021Dec. 31, 2020Dec. 31, 2021Dec. 31, 2020Feb. 19, 2018Dec. 11, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized (in shares)2,000,000,000 582,981,484 2,000,000,000 582,981,484
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001 $ 0.0001 $ 0.0001
Stock converted, reverse recapitalization (in shares)495,242,606
Sale of stock, number of shares issued in transaction (in shares)55,000,000
Sale of stock, consideration received on transaction $ 550,000,000
Aggregate intrinsic value of options exercised $ 41,600,000 $ 15,400,000
Weighted average grant date, fair value (in dollars per share) $ 2.16 $ 0.70
Exercises in period, forgiveness (in shares)9,400,000
Exercises in period, forgiveness, intrinsic value $ 94,000,000
Incremental stock option charge, number of shares subject to repurchase (in shares)2,948,602
Early exercise of stock options liability for unvested awards $ 2,500,000 $ 2,200,000 $ 2,500,000
Number of shares subject to repurchase related to early exercise of stock option (in shares)2,399,245 2,060,221 2,399,245
Share-based compensation expense $ 24,300,000 $ 17,200,000
Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan modification, incremental charge $ 2,600,000
the 2019 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock, percent100.00%
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance (in shares)78,000,000
Percentage of issued and outstanding stock, maximum5.00%
2021 Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period2 years
2021 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period4 years
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock converted, reverse recapitalization (in shares)495,242,606
Common stock warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during period, shares, warrants exercised (in shares)3,911,610
Cancelled (in shares)5,564,492
Common stock warrant | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities called by warrants or rights (in shares)27,202,571
Warrant Issued on December 11, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant shares outstanding (in shares)4,738,051 4,738,051
Warrant Issued on February 19, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant shares outstanding (in shares)4,738,051 4,738,051
Vested (in shares)62,500
Plan modification, incremental charge $ 1,000,000
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan modification, incremental charge $ 2,100,000
Unrecognized compensation cost $ 28,900,000
Unrecognized compensation cost, period for recognition2 years 4 months 24 days
Expected term10 years
Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term5 years 4 months 24 days5 years 7 months 6 days
Options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term6 years 6 months6 years 1 month 6 days
Options | the 2019 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term period10 years
Vesting period4 years
RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding in period (in shares)0 27,170,930 0
Vested (in shares)187,125
Unrecognized compensation cost $ 106,300,000
Unrecognized compensation cost, period for recognition3 years 3 months 18 days
Nonvested, weighted average grant date fair value (in dollars per share) $ 0 $ 3.91 $ 0
RSU | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period2 years
RSU | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period4 years
RSU | the 2019 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period4 years
Restricted Share
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)133,871
Restricted Share | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period3 years
Restricted Share | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period4 years
Performance Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period18 months
Outstanding in period (in shares)1,768,419
Unrecognized compensation cost $ 6,200,000
Nonvested, weighted average grant date fair value (in dollars per share) $ 5.21
Share-based compensation expense $ 3,000,000
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock, percent85.00%
Number of shares authorized for issuance (in shares)13,000,000
Percentage of issued and outstanding stock, maximum1.00%
Maximum employee subscription amount $ 25,000,000,000
Look back feature6 months
Issued (in shares)0

Stockholders' Equity - Instrume

Stockholders' Equity - Instrument Activity Related to Business Acquisition (Details)Aug. 02, 2021sharesAug. 01, 2021shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding (in shares)504,742,606
Exchange Ratio6.95433
Old Hippo shares, net of repurchase (in shares)495,242,606
Old Hippo preferred stock warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding (in shares)17,344,906 2,494,116
Exchange Ratio6.95433
Old Hippo common stock warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding (in shares)27,202,571 3,911,610
Exchange Ratio6.95433
Old Hippo common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding (in shares)110,858,374 15,940,914
Less: Repurchase of common stock (in shares)(9,500,000)
Old Hippo convertible preferred stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding (in shares)305,887,443 43,985,178
Exchange Ratio6.95433
Old Hippo convertible promissory notes
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding (in shares)6,247,807
Exchange Ratio6.95433
Old Hippo convertible promissory notes | Old Hippo convertible promissory notes
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding (in shares)43,449,312
Exchange Ratio6.95433
Common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Less: Repurchase of common stock (in shares)(9,500,000)
Old Hippo shares, net of repurchase (in shares)495,242,606

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock Warrants (Details) - $ / sharesDec. 31, 2021Feb. 19, 2018Dec. 11, 2017
Warrant Issued on December 11, 2017
Class of Warrant or Right [Line Items]
Exercise Price Per Share (in dollars per share) $ 0.01
Outstanding Warrants (in shares)4,738,051 4,738,051
Warrant Issued on February 19, 2018
Class of Warrant or Right [Line Items]
Exercise Price Per Share (in dollars per share) $ 0.01
Outstanding Warrants (in shares)4,738,051 4,738,051

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Options Outstanding
Outstanding, beginning balance (in shares)72,205,242
Granted (in shares)9,686,589
Exercised (in shares)(22,801,742)
Cancelled/Expired (in shares)(11,551,163)
Outstanding, ending balance (in shares)47,538,926 72,205,242
Vested and exercisable (in shares)15,919,802
Weighted Average Exercise Price
Outstanding, beginning balance (in dollars per share) $ 0.70
Granted (in dollars per share)4.81
Exercised (in dollars per share)0.33
Cancelled/Expired (in dollars per share)2.05
Outstanding, ending balance (in dollars per share)1.39 $ 0.70
Vested and exercisable (in dollars per share) $ 0.81
Additional Disclosures
Outstanding, weighted-average remaining, contract term (in years)8 years 3 months 18 days8 years 10 months 24 days
Outstanding, aggregate intrinsic value $ 84.8 $ 108.9
Vested and exercisable, weighted-average remaining, contract term (in years)7 years 10 months 17 days
Vested and exercisable, aggregate intrinsic value $ 32.9

Stockholders' Equity - Stock _2

Stockholders' Equity - Stock Option Assumptions (Details) - Options12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)10 years
Expected volatility, minimum29.60%22.60%
Expected volatility, maximum30.10%29.90%
Risk-free interest rate, minimum0.60%0.30%
Risk-free interest rate, maximum1.40%1.60%
Expected dividend yield0.00%0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)5 years 4 months 24 days5 years 7 months 6 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)6 years 6 months6 years 1 month 6 days

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Units Activity (Details) - Restricted Stock Units12 Months Ended
Dec. 31, 2021$ / sharesshares
Number of Shares
Outstanding, beginning balance (in shares) | shares0
Granted (in shares) | shares28,233,515
Vested (in shares) | shares(187,125)
Canceled and forfeited (in shares) | shares(875,460)
Outstanding, ending balance (in shares) | shares27,170,930
Weighted Average Grant-Date Fair Value per Share
Outstanding, beginning balance (in dollars per share) | $ / shares $ 0
Granted (in dollars per share) | $ / shares3.91
Vested (in dollars per share) | $ / shares4
Canceled and forfeited (in dollars per share) | $ / shares3.97
Outstanding, ending balance (in dollars per share) | $ / shares $ 3.91

Stockholders' Equity - Share-ba

Stockholders' Equity - Share-based Compensation Expense (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense $ 24.3 $ 17.2
Losses and loss adjustment expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense0.6 0.1
Insurance related expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense1.1 0.2
Technology and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense6.8 2.4
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense5 2.1
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense $ 10.8 $ 12.4

Income Taxes - Income (Loss) Be

Income Taxes - Income (Loss) Before Tax (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Income Tax Disclosure [Abstract]
United States $ (371.3) $ (143.2)
Foreign0.6 0
Total $ (370.7) $ (143.2)

Income Taxes - Components of To

Income Taxes - Components of Total Provision for Income Taxes (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Income Tax Disclosure [Abstract]
Loss before income taxes $ (370.7) $ (143.2)
Income tax benefit from statutory rate(77.9)(30.1)
Meals, entertainment & parking0.1 0.1
Deferred compensation27.8 8.1
Transaction costs0.1 0.1
State taxes(7.2)(1.1)
Non-deductible interest5.5 0
Increase in valuation allowance53.4 19.9
Other(1.1)1.2
Total provision for income taxes $ 0.7 $ (1.8)

Income Taxes - Components of Pr

Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Current
State $ 0.2 $ 0.2
Foreign0.5 0
Total current provision0.7 0.2
Deferred
Federal0 (1.9)
State0 (0.1)
Total deferred provision0 (2)
Total provision for income taxes $ 0.7 $ (1.8)

Income Taxes - Deferred Income

Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in MillionsDec. 31, 2021Dec. 31, 2020
Deferred tax assets:
Net operating loss carryforward $ 87.4 $ 35.4
Provision for commission0 5.4
Intangible assets3.5 3.1
Research and development credit2.4 0.2
Deferred compensation2.2 0.3
Unearned premium reserve1.2 1
Loss reserve discount0.6 0.1
Unrealized losses0.2 0
Deferred rent0.2 0.1
Other accruals3.5 0.9
Interest expense limitation0 0.6
Total deferred tax assets101.2 47.1
Valuation allowance(93.2)(39.6)
Total deferred income tax assets8 7.5
Deferred tax liabilities
Property and equipment0.3 0.1
Provision for commission0.2 0
Capitalized software6.1 3.3
Acquired intangibles0.2 0.5
Unrealized gains0 0.4
Spinnaker stepped-up adjustment0 2.9
Deferred acquisition costs0.9 0.3
Other0.3 0
Total deferred tax liabilities8 7.5
Deferred income tax assets, net $ 0 $ 0

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Income Tax Disclosure [Abstract]
Unrecognized tax benefits $ 1,100,000 $ 0
Income tax interest or penalties incurred0 0
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards509,200,000
Income tax examination, penalties and interest incurred0 $ 0
RH Solutions Insurance (Cayman) Ltd.
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards53,300,000
U.S. Federal
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards372,900,000
U.S. Federal | Research Tax Credit Carryforward
Operating Loss Carryforwards [Line Items]
Tax credit carryforward, amount2,100,000
U.S. State
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards136,300,000
U.S. State | Research Tax Credit Carryforward
Operating Loss Carryforwards [Line Items]
Tax credit carryforward, amount $ 1,800,000

Income Taxes - Components of Ne

Income Taxes - Components of Net Operating Loss Carryforwards (Details) $ in MillionsDec. 31, 2021USD ($)
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, subject to expiration $ 198.7
Operating loss carryforwards, not subject to expiration310.5
Total509.2
U.S. Federal
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, subject to expiration62.4
Operating loss carryforwards, not subject to expiration310.5
Total372.9
U.S. State
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, subject to expiration136.3
Operating loss carryforwards, not subject to expiration0
Total $ 136.3

Net Loss Per Share Attributab_3

Net Loss Per Share Attributable to Common Stockholders - Computation (Details) - USD ($) $ / shares in Units, $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Earnings Per Share [Abstract]
Net loss attributable to Hippo - basic $ (371.4) $ (141.5)
Net loss attributable to Hippo - diluted $ (371.4) $ (141.5)
Weighted-average shares used in computing net loss per share attributable to Hippo - basic (in shares)272,168,933 86,897,893
Weighted-average shares used in computing net loss per share attributable to Hippo - diluted (in shares)272,168,933 86,897,893
Net loss per share attributable to Hippo - basic (in dollars per share) $ (1.36) $ (1.63)
Net loss per share attributable to Hippo - diluted (in dollars per share) $ (1.36) $ (1.63)

Net Loss Per Share Attributab_4

Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)90,487,042 408,295,877
Convertible preferred stock (on an as if converted basis)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)0 275,009,550
Outstanding options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)47,538,926 58,168,262
Warrants to purchase common shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)9,000,000 33,127,646
Warrants to purchase preferred shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)0 17,344,906
Common stock subject to repurchase
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)5,008,767 9,499,253
RSU and PRSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)28,939,349 0
Convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)0 15,146,260

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) $ in MillionsAug. 31, 2021USD ($)Aug. 31, 2020USD ($)stateDec. 31, 2021USD ($)Dec. 31, 2020USD ($)Feb. 21, 2021USD ($)Dec. 31, 2019USD ($)
Business Acquisition [Line Items]
Goodwill $ 53.5 $ 47.8 $ 1.9
Agency and carrier relationships
Business Acquisition [Line Items]
Useful life6 years 10 months 24 days
Convertible promissory note
Business Acquisition [Line Items]
Face amount377.5 $ 7
Spinnaker Insurance Company (Spinnaker)
Business Acquisition [Line Items]
Percentage of equity interests acquired100.00%
Number of states with ability to write commercial and personal line products and licensed property casualty carrier | state50
Acquisition related costs0.8
Consideration transferred $ 90.5
Goodwill32.5
Net liabilities $ 47.4
First Connect Insurance Services
Business Acquisition [Line Items]
Acquisition related costs0.1
Consideration transferred24.4
Acquired intangibles assets11
Goodwill13.9
Net liabilities $ 0.5
First Connect Insurance Services | Agency and carrier relationships
Business Acquisition [Line Items]
Useful life8 years
First Connect Insurance Services | Convertible promissory note
Business Acquisition [Line Items]
Face amount $ 12.5
Software Development and Engineering Consulting Firm
Business Acquisition [Line Items]
Acquisition related costs $ 0.4
Consideration transferred7.8
Acquired intangibles assets0.6
Goodwill5.3
Net working capital2
Unrecognized compensation cost $ 9.2
Unrecognized compensation cost, period for recognition18 months

Acquisitions - Consideration Tr

Acquisitions - Consideration Transferred (Details) - Spinnaker Insurance Company (Spinnaker) $ in MillionsAug. 31, 2020USD ($)
Business Acquisition [Line Items]
Cash paid $ 95.6
Less: consideration for settlement of pre-existing liability due to Spinnaker(5.1)
Total value of consideration transferred $ 90.5

Acquisitions - Purchase Price A

Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in MillionsAug. 31, 2020Dec. 31, 2021Dec. 31, 2020Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill $ 53.5 $ 47.8 $ 1.9
VOBA
Business Acquisition [Line Items]
Estimated Useful Life of Finite-Lived Intangible Assets8 months 12 days
Spinnaker Insurance Company (Spinnaker)
Business Acquisition [Line Items]
Short term investments $ 5
Fixed maturities available-for-sale, at fair value45.7
Total investments50.7
Cash and cash equivalents16.9
Restricted cash2.1
Accounts receivable, net18.3
Reinsurance recoverable on paid and unpaid losses and LAE116.3
Ceding commissions receivable18.7
Prepaid reinsurance premiums131.9
Other assets0.6
Accrued expenses and other liabilities(6.6)
Loss and loss adjustment expense reserves(93.3)
Unearned premiums(132.1)
Reinsurance premium payable(76.1)
Net tangible assets acquired47.4
State licenses7.1
Goodwill32.5
Total purchase price90.5
Spinnaker Insurance Company (Spinnaker) | Agency relationships
Business Acquisition [Line Items]
Intangible assets acquired $ 3.4
Estimated Useful Life of Finite-Lived Intangible Assets8 years
Spinnaker Insurance Company (Spinnaker) | VOBA
Business Acquisition [Line Items]
Intangible assets acquired $ 0.1
Estimated Useful Life of Finite-Lived Intangible Assets2 years

Acquisitions - Pro Forma (Detai

Acquisitions - Pro Forma (Details) - Spinnaker Insurance Company (Spinnaker) $ in Millions12 Months Ended
Dec. 31, 2020USD ($)
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Pro forma revenue $ 54.1
Pro forma net loss $ (136.6)

Related Party (Details)

Related Party (Details) - USD ($) $ in Millions11 Months Ended12 Months Ended
Nov. 30, 2020Dec. 31, 2020Oct. 31, 2020Feb. 29, 2020Feb. 28, 2019
Executive Officer
Related Party Transaction [Line Items]
Expenses from transactions with related party $ 9.9
Executive Officer | First Connect Insurance Services
Related Party Transaction [Line Items]
Investment ownership percentage10.00%
Purchases of investments $ 6.4
Forecast Labs, LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party2.2
Related party, ownership percentage of outstanding stock threshold, minimum5.00%
Comcast Neptune, LLC and Loop Labs, Inc. d/b/a Notion
Related Party Transaction [Line Items]
Expenses from transactions with related party3.2
Related party, ownership percentage of outstanding stock threshold, minimum5.00%
Comcast Ventures, LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party $ 120,000
Related party, ownership percentage of outstanding stock threshold, minimum5.00%

Statutory Financial Informati_3

Statutory Financial Information (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Statutory Accounting Practices [Line Items]
Statutory Net Income $ (55.2) $ (10.1)
Capital Surplus139.5 92.2
U.S. insurance subsidiaries
Statutory Accounting Practices [Line Items]
Statutory Net Income(0.5)6.6
Capital Surplus131.8 69.6
International insurance subsidiary
Statutory Accounting Practices [Line Items]
Statutory Net Income(54.7)(16.7)
Capital Surplus $ 7.7 $ 22.6

Dividend Restrictions (Details)

Dividend Restrictions (Details) - USD ($)12 Months Ended
Dec. 31, 2021Dec. 31, 2020
Statutory Accounting Practices [Line Items]
Statutory surplus, balance $ 139,500,000 $ 92,200,000
Statutory net income amount(55,200,000)(10,100,000)
Spinnaker Specialty Insurance Company ("SSIC")
Statutory Accounting Practices [Line Items]
Statutory surplus, balance47,000,000
Statutory net income amount0
Mainsail Insurance Company ("MIC")
Statutory Accounting Practices [Line Items]
Statutory surplus, balance10,000,000
Statutory net income amount0
RH Solutions Insurance (Cayman) Ltd.
Statutory Accounting Practices [Line Items]
Statutory amount available for dividend payments contingent on regulatory approval5,400,000 $ 28,000,000
Statutory prescribed capital requirement2,300,000
Illinois
Statutory Accounting Practices [Line Items]
Statutory amount available for dividend payments without regulatory approval $ 11,700,000