Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 09, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39711 | |
Entity Registrant Name | HIPPO HOLDINGS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0662604 | |
Entity Address, Address Line One | 150 Forest Avenue | |
Entity Address, City or Town | Palo Alto | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94301 | |
City Area Code | 650 | |
Local Phone Number | 294-8463 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 568,103,749 | |
Entity Central Index Key | 0001828105 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.0001 par value per share | |
Trading Symbol | HIPO | |
Security Exchange Name | NYSE | |
Warrants to purchase common stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase common stock | |
Trading Symbol | HIPO.WS | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments: | ||
Fixed maturities available-for-sale, at fair value (amortized cost: $89.5 and $55.6, respectively) | $ 86.5 | $ 54.9 |
Short-term investments | 348.9 | 9.1 |
Total investments | 435.4 | 64 |
Cash and cash equivalents | 336.8 | 775.6 |
Restricted cash | 44.8 | 43.1 |
Accounts receivable, net of allowance of $0.3 and $0.4, respectively | 61 | 56.5 |
Reinsurance recoverable on paid and unpaid losses and LAE | 321.4 | 266.9 |
Prepaid reinsurance premiums | 236 | 231.6 |
Ceding commissions receivable | 49.2 | 41.6 |
Capitalized internal use software | 30.3 | 25.9 |
Goodwill | 53.5 | 53.5 |
Intangible assets | 30.3 | 32.2 |
Other assets | 75.8 | 51.8 |
Total assets | 1,674.5 | 1,642.7 |
Liabilities: | ||
Loss and loss adjustment expense reserve | 282.4 | 260.8 |
Unearned premiums | 252.1 | 253.1 |
Reinsurance premiums payable | 201.7 | 159.4 |
Provision for commission | 14.4 | 12.3 |
Contingent consideration liability | 14.1 | 11.6 |
Accrued expenses and other liabilities | 101.1 | 83.8 |
Total liabilities | 865.8 | 781 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Common stock, $0.0001 par value per share; 2,000,000,000 and 2,000,000,000 shares authorized as of March 31, 2022 and December 31, 2021, respectively; 567,754,016 and 565,031,129 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 0 | 0 |
Additional paid-in capital | 1,504.4 | 1,488.3 |
Accumulated other comprehensive loss | (3.3) | (0.7) |
Accumulated deficit | (695.6) | (628) |
Total Hippo stockholders’ equity | 805.5 | 859.6 |
Noncontrolling interest | 3.2 | 2.1 |
Total stockholders’ equity | 808.7 | 861.7 |
Total liabilities and stockholders’ equity | $ 1,674.5 | $ 1,642.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available-for-sale, amortized cost | $ 89.5 | $ 55.6 |
Accounts receivable, allowance | $ 0.3 | $ 0.4 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 567,754,016 | 565,031,129 |
Common stock, shares outstanding (in shares) | 567,754,016 | 565,031,129 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue: | ||
Net earned premium | $ 9 | $ 8.8 |
Commission income, net | 11.5 | 5.2 |
Service and fee income | 3.6 | 2.9 |
Net investment income | 0.4 | 0.1 |
Total revenue | 24.5 | 17 |
Expenses: | ||
Losses and loss adjustment expenses | 22.5 | 19 |
Insurance related expenses | 13.2 | 5.8 |
Technology and development | 14.7 | 6.9 |
Sales and marketing | 24.9 | 24.7 |
General and administrative | 16.5 | 8.3 |
Interest and other (income) expense | (1) | 147.1 |
Total expenses | 90.8 | 211.8 |
Loss before income taxes | (66.3) | (194.8) |
Income tax expense | 0.2 | 0.1 |
Net loss | (66.5) | (194.9) |
Net income attributable to noncontrolling interests, net of tax | 1.1 | 0.3 |
Net loss attributable to Hippo | (67.6) | (195.2) |
Other comprehensive income: | ||
Change in net unrealized gain or loss on investments, net of tax | (2.6) | (0.6) |
Comprehensive loss attributable to Hippo | (70.2) | (195.8) |
Per share data: | ||
Net loss attributable to Hippo - basic | (67.6) | (195.2) |
Net loss attributable to Hippo - diluted | $ (67.6) | $ (195.2) |
Weighted-average shares used in computing net loss per share attributable to Hippo - basic (in shares) | 561,620,061 | 95,970,269 |
Weighted-average shares used in computing net loss per share attributable to Hippo - diluted (in shares) | 561,620,061 | 95,970,269 |
Net loss per share attributable to Hippo - basic (in dollars per share) | $ (0.12) | $ (2.03) |
Net loss per share attributable to Hippo - diluted (in dollars per share) | $ (0.12) | $ (2.03) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Hippo Stockholders' Equity (Deficit ) | Non controlling Interests |
Beginning balance (in shares) at Dec. 31, 2020 | 305,887,443 | ||||||
Beginning balance at Dec. 31, 2020 | $ 344.8 | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 305,887,443 | ||||||
Ending balance at Mar. 31, 2021 | $ 344.8 | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 92,547,014 | ||||||
Beginning balance at Dec. 31, 2020 | (199.5) | $ 0 | $ 56.9 | $ 0.1 | $ (256.6) | $ (199.6) | $ 0.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (194.9) | (195.2) | (195.2) | 0.3 | |||
Other comprehensive income | (0.6) | (0.6) | (0.6) | ||||
Issuance of common stock upon exercise of stock options (in shares) | 4,604,469 | ||||||
Issuance of common stock upon exercise of stock options | 1.9 | 1.9 | 1.9 | ||||
Vesting of early exercised stock options (in shares) | 171,695 | ||||||
Vesting of early exercised stock options | 0.2 | 0.2 | 0.2 | ||||
Repurchase of common stock (in shares) | (21,732) | ||||||
Stock-based compensation expense | 2.9 | 2.9 | 2.9 | ||||
Other | 0 | (0.1) | (0.1) | 0.1 | |||
Ending balance (in shares) at Mar. 31, 2021 | 97,301,446 | ||||||
Ending balance at Mar. 31, 2021 | $ (390) | $ 0 | 61.9 | (0.5) | (451.9) | (390.5) | 0.5 |
Beginning balance (in shares) at Dec. 31, 2021 | 0 | ||||||
Beginning balance at Dec. 31, 2021 | $ 0 | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 0 | ||||||
Ending balance at Mar. 31, 2022 | $ 0 | ||||||
Beginning balance (in shares) at Dec. 31, 2021 | 565,031,129 | ||||||
Beginning balance at Dec. 31, 2021 | 861.7 | $ 0 | 1,488.3 | (0.7) | (628) | 859.6 | 2.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (66.5) | (67.6) | (67.6) | 1.1 | |||
Other comprehensive income | (2.6) | (2.6) | (2.6) | ||||
Issuance of common stock upon exercise of stock options and vesting of RSUs (in shares) | 2,722,887 | ||||||
Issuance of common stock upon exercise of stock options and vesting of RSUs | 1.2 | 1.2 | 1.2 | ||||
Shares withheld related to net share settlement | $ (1) | (1) | (1) | ||||
Issuance of common stock upon exercise of stock options (in shares) | 1,753,435 | ||||||
Vesting of early exercised stock options (in shares) | 0 | ||||||
Vesting of early exercised stock options | $ 0.2 | 0.2 | 0.2 | ||||
Stock-based compensation expense | 15.7 | 15.7 | 15.7 | ||||
Ending balance (in shares) at Mar. 31, 2022 | 567,754,016 | ||||||
Ending balance at Mar. 31, 2022 | $ 808.7 | $ 0 | $ 1,504.4 | $ (3.3) | $ (695.6) | $ 805.5 | $ 3.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (66.5) | $ (194.9) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 3.9 | 2.5 |
Stock–based compensation expense | 13.4 | 2.5 |
Change in fair value of preferred stock warrant liabilities | 0 | 97.1 |
Change in fair value of warrant liability | (1.2) | 0 |
Change in fair value of contingent consideration liability | 3.2 | 0.6 |
Change in fair value of derivative liability on notes | 0 | 39.3 |
Amortization of debt discount | 0 | 8.2 |
Non-cash service expense | 0 | 7 |
Other non-cash items | 0.2 | 2.7 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (4.5) | (5.4) |
Reinsurance recoverable on paid and unpaid losses and LAE | (54.5) | (74.6) |
Ceding commissions receivable | (7.6) | (6.4) |
Prepaid reinsurance premiums | (4.4) | (26.6) |
Other assets | (3.3) | (10.2) |
Provision for commission | 2.1 | (3.1) |
Accrued expenses and other liabilities | (2.3) | 26.1 |
Loss and loss adjustment expense reserves | 21.6 | 62.8 |
Unearned premiums | (1) | 24.7 |
Reinsurance premiums payable | 42.3 | 32.2 |
Net cash used in operating activities | (58.6) | (15.5) |
Cash flows from investing activities: | ||
Capitalized internal use software costs | (3.8) | (2.7) |
Purchase of intangible assets | 0 | (3.3) |
Purchases of property and equipment | (2.4) | 0 |
Purchases of investments | (385.4) | (5.8) |
Maturities of investments | 12.8 | 0.7 |
Sales of investments | 2.6 | 2.1 |
Other | (2) | 0 |
Net cash used in investing activities | (378.2) | (9) |
Cash flows from financing activities: | ||
Taxes paid related to net share settlement of equity awards | (1) | 0 |
Proceeds from exercise of options | 1.2 | 1.9 |
Other | (0.5) | (1.7) |
Net cash (used in) provided by financing activities | (0.3) | 0.2 |
Net increase in cash, cash equivalents, and restricted cash | (437.1) | (24.3) |
Cash, cash equivalents, and restricted cash at the beginning of the period | 818.7 | 492.4 |
Cash, cash equivalents, and restricted cash at the end of the period | 381.6 | 468.1 |
Supplemental disclosures of non-cash financing and investing activities: | ||
Convertible promissory notes issued for services | 0 | 7 |
Unpaid transaction costs | $ 0 | $ 3.9 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business and Summary of Significant Accounting Policies Description of Business Hippo Holdings Inc., referred to in these Notes to the Consolidated Financial Statements as “Hippo” or the “Company,” specializes in the underwriting, administration, and marketing of personal property and commercial insurance policies. 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. Hippo Analytics Inc. offers its insurance products through licensed insurance agents, and direct-to-consumer channels. 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. The Company has a wholly-owned Cayman domiciled captive insurance company, RH Solutions Insurance (Cayman) Ltd. (“RHS”) which assumes insurance risk of policies from affiliated and non-affiliated insurance carriers. Hippo was originally incorporated under the name Reinvent Technology Partners Z (“RTPZ”) as 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, and 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. Basis of Presentation and Consolidation The interim 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”) and include the Company’s consolidated subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted accordingly. The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Interim results are not necessarily indicative of the results for a full year. 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, fair value of common stock prior to the Business Combination, stock-based awards, 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. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In February 2016, the FASB issued ASU 2016-02 In June 2016, the FASB issued ASU No. 2016-13, Financial instruments — Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), and subsequent related ASUs, which amends the guidance on the impairment of financial instruments by requiring measurement and recognition of expected credit losses for financial assets held. The Company early adopted Topic 326 effective January 1, 2022 using the modified retrospective approach which resulted in no cumulative-effect adjustment to retained earnings. The adoption of the accounting guidance did not have a material impact on the Company’s available-for-sale securities. In December 2020, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. The Company adopted ASU 2019-12 as of January 1, 2022, under the private company transition guidance and the adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Leases Leases arise from contractual obligations that convey the right to control the use of an identified property, plant or equipment for a stated time period in exchange for consideration. The Company determines if an arrangement is, or contains a lease at contract inception. Lease classification is determined at the lease commencement date, on which the leased assets are available for the Company’s use. The Company recognizes a ROU asset and a corresponding lease liability at commencement date for operating leases. ROU assets are presented under other assets and lease liabilities are presented under accrued expenses and other liabilities in the consolidated balance sheets. The Company did not have any material finance leases in the periods presented. ROU assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make payments during the lease term. ROU assets are recognized at the lease commencement date for the lease liability amount, adjusted for initial direct costs incurred and lease incentives received. Lease liabilities are recognized at commencement based on the present value of the future lease payments over the lease term. Lease terms may include options to extend or terminate the lease when the Company believes it is reasonably certain that the Company will exercise such options. Since the implicit discount rate for operating leases is not readily determinable, the Company uses an estimate of its incremental borrowing rate (“IBR”) on the lease commencement date in determining the present value of lease payments. IBR is determined based on information available at lease commencement including interest rates, credit ratings, credit spreads, and lease term. Operating lease expense is recognized on a straight-line basis over the lease term. The Company accounts for lease and non-lease components as a single lease component. Accordingly, the Company includes fixed non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities. Non-lease components that are not fixed are expensed as incurred as variable lease payments. The Company does not record leases on the balance sheet that have a term of 12 months or less at the lease commencement date. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 2. Investments The amortized cost and fair value of fixed maturities securities and short-term investments are as follows (in millions): March 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Fixed maturities available-for-sale: U.S. government and agencies $ 15.1 $ — $ (0.2) $ 14.9 States, and other territories 5.8 — (0.4) 5.4 Corporate securities 40.2 — (1.0) 39.2 Foreign securities 0.9 — — 0.9 Residential mortgage-backed securities 10.9 — (0.7) 10.2 Commercial mortgage-backed securities 6.6 — (0.4) 6.2 Asset backed securities 10.0 — (0.3) 9.7 Total fixed maturities available-for-sale 89.5 — (3.0) 86.5 Short-term investments: U.S. government and agencies 349.2 — (0.3) 348.9 Total $ 438.7 $ — $ (3.3) $ 435.4 December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value 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 The following tables present the gross unrealized losses and related fair values for the Company’s investments in available-for-sale debt securities, grouped by duration of time in a continuous unrealized loss position as of March 31, 2022, and December 31, 2021 (in millions): March 31, 2022 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities available-for-sale: U.S. government and agencies $ 14.4 $ (0.2) $ 0.5 $ — $ 14.9 $ (0.2) States, and other territories 0.5 — 4.9 (0.4) 5.4 (0.4) Corporate securities 25.9 (0.4) 10.8 (0.6) 36.7 (1.0) Residential mortgage-backed securities 3.0 (0.2) 6.5 (0.5) 9.5 (0.7) Commercial mortgage-backed securities — — 4.3 (0.4) 4.3 (0.4) Asset backed securities 4.6 (0.1) 4.2 (0.2) 8.8 (0.3) Short-term investments: U.S. government and agencies 348.9 (0.3) — — 348.9 (0.3) Total $ 397.3 $ (1.2) $ 31.2 $ (2.1) $ 428.5 $ (3.3) December 31, 2021 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses States, and other territories 5.2 (0.1) — — 5.2 (0.1) Corporate securities 15.9 (0.2) — — 15.9 (0.2) Residential mortgage-backed securities 10.5 (0.2) — — 10.5 (0.2) Commercial mortgage-backed securities 4.7 (0.1) — — 4.7 (0.1) Asset backed securities 5.4 (0.1) — — 5.4 (0.1) Total $ 41.7 $ (0.7) $ — $ — $ 41.7 $ (0.7) Company determined that an allowance for credit losses was not necessary as it is more likely than not that the Company will not be required to sell the investments before the recovery of the amortized cost basis. The amortized cost and fair value of fixed maturities securities by contractual maturity are as follows (in millions): March 31, 2022 Amortized Cost Fair Value Due to mature: One year or less $ 8.4 $ 8.3 After one year through five years 46.8 45.6 After five years 6.8 6.5 Residential mortgage-backed securities 10.9 10.2 Commercial mortgage-backed securities 6.6 6.2 Asset backed securities 10.0 9.7 Total fixed maturities available-for-sale $ 89.5 $ 86.5 Expected maturities may 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 three months ended March 31, 2022 and 2021, respectively. The Company’s net investment income is comprised of the following (in millions): Three Months Ended March 31, 2022 2021 Fixed maturities income $ 0.2 $ 0.1 Short-term investment income 0.2 — Total gross investment income 0.4 0.1 Investment expenses — — Net investment income $ 0.4 $ 0.1 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 carrying value of securities on deposit with state regulatory authorities total $9.0 million and $8.4 million as of March 31, 2022 and December 31, 2021, respectively. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 3 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | 3. Cash, Cash Equivalents, and Restricted Cash The following table sets forth the cash, cash equivalents, and restricted cash (in millions): March 31, December 31, Cash and cash equivalents: Cash $ 141.4 $ 219.2 Money market funds 161.4 556.4 Treasury bills 34.0 — Total cash and cash equivalents 336.8 775.6 Restricted cash: Fiduciary assets 26.7 25.0 Letters of credit and cash on deposit 18.1 18.1 Total restricted cash 44.8 43.1 Total cash, cash equivalents, and restricted cash $ 381.6 $ 818.7 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 4. 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): March 31, 2022 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents: Money market funds $ 161.4 $ — $ — $ 161.4 Treasury bills 34.0 — — 34.0 Total cash equivalents 195.4 — — 195.4 Fixed maturities available-for-sale: U.S. government and agencies 14.9 — — 14.9 States, and other territories — 5.4 — 5.4 Corporate securities — 39.2 — 39.2 Foreign securities — 0.9 — 0.9 Residential mortgage-backed securities — 10.2 — 10.2 Commercial mortgage-backed securities — 6.2 — 6.2 Asset backed securities — 9.7 — 9.7 Total fixed maturities available-for-sale 14.9 71.6 — 86.5 Short term investments U.S. government and agencies 348.9 — — 348.9 Total financial assets $ 559.2 $ 71.6 $ — $ 630.8 Financial liabilities: Contingent consideration liability $ — $ — $ 14.1 $ 14.1 Public warrants 1.6 — — 1.6 Private placement warrants — 1.5 — 1.5 Total financial liabilities $ 1.6 $ 1.5 $ 14.1 $ 17.2 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 The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels at the end of each reporting period. There were no transfers between levels in the fair value hierarchy during the three months ended March 31, 2022. 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. 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): 2022 2021 Balance as of January 1, $ 11.6 $ 12.0 Payments of contingent consideration (0.7) (0.7) Changes in fair value 3.2 0.6 Balance as of March 31, $ 14.1 $ 11.9 Preferred Stock Warrant Liabilities The preferred stock warrants were issued through the issuance of Series A-2 and Series C-1 Preferred Stock in March 2017 and October 2018, respectively. The warrants were vested immediately. Prior to the Business Combination on August 2, 2021, the holders exercised their warrants for 2,494,116 shares of Old Hippo preferred stock in exchange for 17,344,906 shares of the Company’s common stock. The warrants 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 of fair value using the Black-Scholes-Merton option-pricing model at each balance sheet date. The table below presents changes in the preferred stock warrant liability valued using Level 3 inputs (in millions): 2021 Balance as of January 1, $ 22.9 Changes in fair value 97.1 Balance as of March 31, $ 120.0 The following assumptions were used in determining fair value of the convertible preferred stock warrant liabilities: March 31, 2021 Fair value of Series A-2 Preferred Stock $ 59.10 Fair value of Series C-1 Preferred Stock $ 59.73 Exercise price A-2 Preferred Stock $ 1.57 Exercise price C-1 Preferred Stock $ 11.74 Expected term (in years) 1.6-6.0 Expected volatility 29.0%-43.8% Risk-free interest rate 0.1%-1.2% Expected dividend yield — % Derivative liability on notes The embedded derivative liabilities on the previously issued and outstanding convertible promissory notes were re-valued to the then current fair value at the end the reporting period using the income-based approach with or without a 10% discount. The expected time to conversion used in the mark to market valuation was 0.3-2.9 years. The table below presents the changes in derivative liability on convertible promissory notes valued using Level 3 inputs (in millions): 2021 Balance as of January 1, $ 113.3 Initial measurement of new derivative 2.8 Changes in fair value 39.3 Balance as of March 31, $ 155.4 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. Intangible Assets March 31, 2022 December 31, 2021 Weighted- Average Useful Life Remaining (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) (in millions) Agency and carrier relationships 6.7 $ 13.5 $ (2.1) $ 11.4 $ 13.5 $ (1.7) $ 11.8 State licenses and domain name Indefinite 10.5 — 10.5 10.5 — 10.5 Customer relationships 3.0 13.7 (6.6) 7.1 13.7 (6.0) 7.7 Developed technology — — — — 3.6 (2.7) 0.9 VOBA — — — — 0.1 (0.1) — Other 6.5 2.0 (0.7) 1.3 2.0 (0.7) 1.3 Total intangible assets, net $ 39.7 $ (9.4) $ 30.3 $ 43.4 $ (11.2) $ 32.2 Amortization expense related to intangible assets for the three months ended March 31, 2022 and 2021 was $1.9 million and $1.4 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. |
Capitalized Internal Use Softwa
Capitalized Internal Use Software | 3 Months Ended |
Mar. 31, 2022 | |
Research and Development [Abstract] | |
Capitalized Internal Use Software | 6. Capitalized Internal Use Software March 31, December 31, (in millions) Capitalized internal use software $ 40.7 $ 34.5 Less: accumulated amortization (10.4) (8.6) Total capitalized internal use software $ 30.3 $ 25.9 Amortization expense totaled $1.8 million and $1.0 million for the three months ended March 31, 2022 and 2021, respectively. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 7. Other Assets March 31, December 31, (in millions) Prepaid expenses $ 26.1 $ 21.2 Claims receivable 25.0 24.4 Lease right-of-use assets 15.9 — Other 8.8 6.2 Total other assets $ 75.8 $ 51.8 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | 8. Accrued Expenses and Other Liabilities March 31, December 31, (in millions) Claim payments outstanding $ 25.3 $ 23.2 Lease liability 16.6 — Advances from customers 13.7 8.7 Deferred revenue 10.8 11.2 Employee related accruals 8.1 8.5 Premium refund liability 6.1 4.8 Fiduciary liability 4.6 3.7 Accrued licenses and taxes 3.2 5.8 Warrant liability 3.1 4.3 Other 9.6 13.6 Total accrued expenses and other liabilities $ 101.1 $ 83.8 |
Loss and Loss Adjustment Expens
Loss and Loss Adjustment Expense Reserves | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Loss and Loss Adjustment Expense Reserves | 9. 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 three months ended March 31, (in millions): 2022 2021 Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of beginning of the period $ 260.8 $ 105.1 Reinsurance recoverables on unpaid losses (217.0) (92.1) Reserve for losses and LAE, net of reinsurance recoverables as of beginning of the period 43.8 13.0 Add: Incurred losses and LAE, net of reinsurance, related to: Current year 25.3 19.4 Prior years (2.8) (0.4) Total incurred 22.5 19.0 Deduct: Loss and LAE payments, net of reinsurance, related to: Current year 8.8 9.8 Prior year 10.4 4.4 Total paid 19.2 14.2 Reserve for losses and LAE, net of reinsurance recoverables at end of period 47.1 17.8 Add: Reinsurance recoverables on unpaid losses and LAE at end of period 235.3 150.1 Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of end of the period $ 282.4 $ 167.9 Loss development occurs when actual losses incurred vary from the Company’s previously developed estimates, which are established through the Company’s loss and LAE reserve estimate processes. Net incurred losses and LAE experienced favorable development of $2.8 million and $0.4 million for the three months ended March 31, 2022 and 2021, respectively. The prior period development of $2.8 million was driven primarily by favorable net loss development relating to the 2021 accident year, resulting in a net release of $2.1 million from attritional reserves and $0.7 million from catastrophe reserves. These changes are generally a result of ongoing analysis of claims emergence patterns and loss trends. Unpaid loss and LAE includes anticipated salvage and subrogation recoverable. The amount of anticipated salvage and subrogation recoverable is insignificant as of March 31, 2022. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Reinsurance | 10. Reinsurance The Company purchases reinsurance to help manage exposure to property and casualty insurance risks, including attritional and catastrophic risks. The Company’s insurance company subsidiaries have entered into proportional and non-proportional reinsurance treaties, under which a significant portion of the liabilities have been ceded to third party reinsurers. The Company also assumes risk from non-affiliated insurance carriers. Proportional Reinsurance Treaties — Hippo For the Company’s primary homeowners reinsurance treaties commencing in 2021 and 2022, the Company secured proportional, quota share reinsurance from a diverse panel of third-party reinsurers. Two of the reinsurers, representing approximately one-third of the programs, provided three-year agreements which incepted in 2021. All reinsurers are either rated “A-” Excellent or better by AM Best, or are collateralized. The Company retains approximately 10% of the premium through its insurance company subsidiaries. Additionally, the reinsurance contracts continue to be subject to variable commission adjustments and loss participation features, including loss ratio caps and loss corridors, and may increase the amount of risk retained by the Company in excess of the Company’s pro-rata participation. Such provisions are recognized in the period based on the experience to date under the agreements. Non-Proportional Reinsurance — Hippo The Company further reduces its risk retention through the purchase of non-proportional reinsurance, primarily excess of loss catastrophe coverage (“XOL”). Through the Company’s insurance company subsidiaries, the Company is exposed to the risk of natural catastrophe events that could occur on the risks arising from policies underwritten by the Company or other managing general agents (“MGAs”). In 2021, the per-risk program protected 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. The per-risk reinsurance program was not continued in 2022. Other Reinsurance Other Spinnaker reinsurance treaties are a mix of proportional and XOL in which approximately 75% to 100% of the risk is ceded. The reinsurance contracts continue to be subject to variable commission adjustments and loss participation features, including loss caps, and may increase the amount of risk retained by the Company in excess of the Company’s proportional participation. Such provisions are recognized in the period the experience to date under the agreement. The Company also purchases a corporate catastrophe XOL program, which provides protection to the Company from catastrophes that could impact a large number of insurance policies. The XOL program provides protection so that the probability of losses from a single occurrence exceeding the protection purchased is no more than 0.4%, or equivalent to a 1 in 250 year return period. This reinsurance protects the Company from all but the most severe catastrophic events. With all reinsurance programs, the Company’s wholly owned insurance carriers are not relieved of their 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 three months ended March 31, 2022 and 2021 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 statements of operations and comprehensive loss for ceded reinsurance as of and for the three months ended March 31, 2022, and 2021 (in millions). For the Three Months Ended March 31, 2022 2021 Written premiums Earned premiums Loss and LAE incurred Written premiums Earned premiums Loss and LAE incurred Direct $ 117.0 $ 120.1 $ 90.9 $ 95.1 $ 71.0 $ 142.1 Assumed 0.1 — 0.3 4.1 3.4 5.3 Gross 117.1 120.1 91.2 99.2 74.4 147.4 Ceded (116.5) (111.1) (68.7) (92.0) (65.6) (128.4) Net $ 0.6 $ 9.0 $ 22.5 $ 7.2 $ 8.8 $ 19.0 As of March 31, 2022 and December 31, 2021, a provision for sliding scale commissions of $9.2 million and $8.6 million, respectively, is included in provision for commission on the consolidated balance sheets. As of March 31, 2022 and December 31, 2021, a receivable for sliding scale commissions of $3.1 million and $2.7 million, respectively, is included in ceding commissions receivable on the consolidated balance sheets. As of March 31, 2022 and December 31, 2021, a provision for loss participation features of $16.4 million and $8.3 million, respectively, was recorded as a contra-asset in reinsurance recoverable on the consolidated balance sheets. |
Geographical Breakdown of Gross
Geographical Breakdown of Gross Written Premium | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Geographical Breakdown of Gross Written Premium | 11. Geographical Breakdown of Gross Written Premium Gross written premium by state is as follows (in millions): Three Months Ended March 31, 2022 2021 Amount % of GWP Amount % of GWP State Texas $ 33.9 28.9 % $ 33.0 33.3 % California 22.1 18.9 % 18.9 19.1 % Florida 6.8 5.8 % 5.8 5.8 % Georgia 6.1 5.2 % 4.1 4.1 % Illinois 3.5 3.0 % 3.1 3.1 % Colorado 3.2 2.7 % 2.5 2.5 % Missouri 3.0 2.6 % 2.4 2.4 % Arizona 3.1 2.6 % 2.4 2.4 % Ohio 2.6 2.2 % 2.0 2.0 % New Jersey 2.6 2.2 % 2.2 2.2 % Other 30.2 25.8 % 22.8 23.0 % Total $ 117.1 100 % $ 99.2 100 % |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Legal Proceedings 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, dismissing all claims against Hippo without prejudice. On May 2, 2022, Mr. Navon amended his complaint, naming Hippo in his breach of contract, promissory estoppel, negligent misrepresentation, and constructive fraud causes of action (in addition to re-pleading the declaratory relief and fraud causes of action). Hippo’s responsive pleading is due on June 1, 2022. Hippo’s CEO has yet to be properly served in the matter. The lawsuit is in the early stages and, at this time, the Company is unable to predict the outcome and cannot estimate the likelihood or magnitude of the Company’s possible or potential loss contingency. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | 13. Leases The Company leases office space under non-cancelable operating leases with various expiration dates through 2026, some of which include options to extend the leases for up to 5 years. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain. For the three months ended March 31, 2022, the Company recognized operating lease expense of $1.0 million in the consolidated statement of operations. Under ASC 840, the operating lease expense during the three months ended March 31, 2021 was $0.7 million. The weighted average remaining lease term and the weighted average discount rate for operating leases as of March 31, 2022 were as follows: Weighted average remaining lease term 4.29 Weighted average discount rate 3.38 % Maturities of operating lease liabilities by fiscal year as of March 31, 2022 are as follows (in millions): Operating Leases 2022 (Remainder) $ 2.9 2023 3.9 2024 4.0 2025 3.7 2026 2.7 Thereafter — Total undiscounted lease payments 17.2 Less: Imputed interest (0.6) Present value of lease payments 16.6 As of March 31, 2022, the Company has entered in additional operating leases for office space that have not yet commenced with total future lease obligations of $7.2 million. These operating leases are expected to commence during 2022. The following table presents supplemental cash flow information about the Company’s operating leases (in millions): Three Months Ended March 31, 2022 Cash paid for amounts included in measurement of liabilities Operating cash flows from operating leases $ (1.0) Right-of-use assets obtained in exchange for new operating liabilities $ — |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity | 14. 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. 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 This reserve increases on January 1 of each year through 2031, by an amount equal to the smaller of: (i) 5% of the number of shares of common stock issued and outstanding on the last day of the immediately preceding fiscal year, or (ii) an amount determined by the board of directors. Stock Options The following table summarizes option activity under the plans: Options Outstanding Weighted-Average Remaining Aggregate Intrinsic Value Number of Shares Weighted Average Exercise Price Contract Term Outstanding as of December 31, 2021 47,538,926 $ 1.39 8.30 $ 84.8 Granted — — Exercised (1,753,435) 0.64 Cancelled/Expired (1,336,079) 1.23 Outstanding as of March 31, 2022 44,449,412 $ 1.35 8.04 $ 45.5 Vested and exercisable as of March 31, 2022 17,879,890 $ 0.94 7.72 $ 21.2 The aggregate intrinsic value of options exercised during the three months ended March 31, 2022 and 2021 was $2.5 million and $34.3 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. Total unrecognized compensation cost of $25.2 million as of March 31, 2022 is expected to be recognized over a weighted-average period of 2.2 years. 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 related number of unvested shares subject to repurchase as of March 31, 2022 was 2,362,894 . In 2020 and 2021, certain employees early exercised stock options with cash. On March 31, 2022 and December 31, 2021, the Company had $2.0 million and $2.2 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 1,888,525 and 2,060,221, 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 Shares Weighted Average Grant-Date Fair Value per Share Unvested and outstanding as of December 31, 2021 27,170,930 $ 3.91 Granted 3,808,702 1.98 Vested (1,409,457) 3.93 Canceled and forfeited (1,546,494) 3.86 Unvested and outstanding as of March 31, 2022 28,023,681 $ 3.65 Total unrecognized compensation cost related to unvested RSUs is $90.9 million as of March 31, 2022, and it is expected to be recognized over a weighted-average period of 3.1 years. Performance Restricted Stock Units In August 2021 and November 2021, the Company granted performance-based restricted stock units ( PRSUs), w hich 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. The Company recognized $2.3 million of stock-based compensation expense associated with the PRSUs for the three months ended March 31, 2022. Total unrecognized compensation cost related to unvested PRSUs is $3.9 million as of March 31, 2022, and it is expected to be recognized within the next six 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 March 31, 2022 . 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 2022 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 Total stock-based compensation expense, classified in the accompanying consolidated statements of operations and comprehensive loss was as follows (in millions): Three Months Ended March 31, 2022 2021 Losses and loss adjustment expenses $ 0.7 $ 0.1 Insurance related expenses 1.3 0.1 Technology and development 5.2 0.4 Sales and marketing 2.4 1.0 General and administrative 3.8 0.9 Total stock-based compensation expense $ 13.4 $ 2.5 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The consolidated effective tax rate was (0.3)% and (0.1)% for the three months ended March 31, 2022 and 2021, respectively. The difference between the rate for the three months ended March 31, 2022 and 2021 and the U.S. federal income tax rate of 21% was due primarily to a full valuation allowance against the Company’s net deferred tax assets. As of March 31, 2022 and 2021, the Company has $1.1 million and $0.0 million of unrecognized tax benefits, respectively, fully offset by a valuation allowance. No interest or penalties were incurred during the three months ended March 31, 2022 and 2021. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | 16. Net Loss Per Share Attributable to Common Stockholders Net loss per share attributable to common stockholders was computed as follows: Three Months Ended March 31, 2022 2021 Numerator: Net loss attributable to Hippo – basic and diluted (in millions) $ (67.6) $ (195.2) Denominator: Weighted-average shares used in computing net loss per share attributable to Hippo — basic and diluted 561,620,061 95,970,269 Net loss per share attributable to Hippo — basic and diluted $ (0.12) $ (2.03) The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows: March 31, 2022 2021 Convertible preferred stock (on an as if converted basis) — 305,887,443 Outstanding options 44,449,412 68,856,873 Warrants to purchase common shares 9,000,000 33,384,616 Warrants to purchase preferred shares — 17,344,906 Common stock subject to repurchase 4,251,406 12,003,660 RSU and PRSUs 29,792,100 — Convertible notes — 149,377,472 Total 87,492,918 586,854,969 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | The interim 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”) and include the Company’s consolidated subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted accordingly. The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Interim results are not necessarily indicative of the results for a full year. |
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, fair value of common stock prior to the Business Combination, stock-based awards, 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. |
Recent Accounting Pronouncements | Accounting Pronouncements Recently Adopted In February 2016, the FASB issued ASU 2016-02 In June 2016, the FASB issued ASU No. 2016-13, Financial instruments — Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), and subsequent related ASUs, which amends the guidance on the impairment of financial instruments by requiring measurement and recognition of expected credit losses for financial assets held. The Company early adopted Topic 326 effective January 1, 2022 using the modified retrospective approach which resulted in no cumulative-effect adjustment to retained earnings. The adoption of the accounting guidance did not have a material impact on the Company’s available-for-sale securities. In December 2020, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. The Company adopted ASU 2019-12 as of January 1, 2022, under the private company transition guidance and the adoption of this standard did not have a material impact on the Company’s consolidated financial statements. |
Leases | Leases arise from contractual obligations that convey the right to control the use of an identified property, plant or equipment for a stated time period in exchange for consideration. The Company determines if an arrangement is, or contains a lease at contract inception. Lease classification is determined at the lease commencement date, on which the leased assets are available for the Company’s use. The Company recognizes a ROU asset and a corresponding lease liability at commencement date for operating leases. ROU assets are presented under other assets and lease liabilities are presented under accrued expenses and other liabilities in the consolidated balance sheets. The Company did not have any material finance leases in the periods presented. ROU assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make payments during the lease term. ROU assets are recognized at the lease commencement date for the lease liability amount, adjusted for initial direct costs incurred and lease incentives received. Lease liabilities are recognized at commencement based on the present value of the future lease payments over the lease term. Lease terms may include options to extend or terminate the lease when the Company believes it is reasonably certain that the Company will exercise such options. Since the implicit discount rate for operating leases is not readily determinable, the Company uses an estimate of its incremental borrowing rate (“IBR”) on the lease commencement date in determining the present value of lease payments. IBR is determined based on information available at lease commencement including interest rates, credit ratings, credit spreads, and lease term. Operating lease expense is recognized on a straight-line basis over the lease term. The Company accounts for lease and non-lease components as a single lease component. Accordingly, the Company includes fixed non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities. Non-lease components that are not fixed are expensed as incurred as variable lease payments. The Company does not record leases on the balance sheet that have a term of 12 months or less at the lease commencement date. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturities Securities and Short-Term Investments | The amortized cost and fair value of fixed maturities securities and short-term investments are as follows (in millions): March 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Fixed maturities available-for-sale: U.S. government and agencies $ 15.1 $ — $ (0.2) $ 14.9 States, and other territories 5.8 — (0.4) 5.4 Corporate securities 40.2 — (1.0) 39.2 Foreign securities 0.9 — — 0.9 Residential mortgage-backed securities 10.9 — (0.7) 10.2 Commercial mortgage-backed securities 6.6 — (0.4) 6.2 Asset backed securities 10.0 — (0.3) 9.7 Total fixed maturities available-for-sale 89.5 — (3.0) 86.5 Short-term investments: U.S. government and agencies 349.2 — (0.3) 348.9 Total $ 438.7 $ — $ (3.3) $ 435.4 December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value 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 |
Schedule of Unrealized Loss on Investments | The following tables present the gross unrealized losses and related fair values for the Company’s investments in available-for-sale debt securities, grouped by duration of time in a continuous unrealized loss position as of March 31, 2022, and December 31, 2021 (in millions): March 31, 2022 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities available-for-sale: U.S. government and agencies $ 14.4 $ (0.2) $ 0.5 $ — $ 14.9 $ (0.2) States, and other territories 0.5 — 4.9 (0.4) 5.4 (0.4) Corporate securities 25.9 (0.4) 10.8 (0.6) 36.7 (1.0) Residential mortgage-backed securities 3.0 (0.2) 6.5 (0.5) 9.5 (0.7) Commercial mortgage-backed securities — — 4.3 (0.4) 4.3 (0.4) Asset backed securities 4.6 (0.1) 4.2 (0.2) 8.8 (0.3) Short-term investments: U.S. government and agencies 348.9 (0.3) — — 348.9 (0.3) Total $ 397.3 $ (1.2) $ 31.2 $ (2.1) $ 428.5 $ (3.3) December 31, 2021 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses States, and other territories 5.2 (0.1) — — 5.2 (0.1) Corporate securities 15.9 (0.2) — — 15.9 (0.2) Residential mortgage-backed securities 10.5 (0.2) — — 10.5 (0.2) Commercial mortgage-backed securities 4.7 (0.1) — — 4.7 (0.1) Asset backed securities 5.4 (0.1) — — 5.4 (0.1) Total $ 41.7 $ (0.7) $ — $ — $ 41.7 $ (0.7) |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturities securities by contractual maturity are as follows (in millions): March 31, 2022 Amortized Cost Fair Value Due to mature: One year or less $ 8.4 $ 8.3 After one year through five years 46.8 45.6 After five years 6.8 6.5 Residential mortgage-backed securities 10.9 10.2 Commercial mortgage-backed securities 6.6 6.2 Asset backed securities 10.0 9.7 Total fixed maturities available-for-sale $ 89.5 $ 86.5 |
Investment Income | The Company’s net investment income is comprised of the following (in millions): Three Months Ended March 31, 2022 2021 Fixed maturities income $ 0.2 $ 0.1 Short-term investment income 0.2 — Total gross investment income 0.4 0.1 Investment expenses — — Net investment income $ 0.4 $ 0.1 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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): March 31, December 31, Cash and cash equivalents: Cash $ 141.4 $ 219.2 Money market funds 161.4 556.4 Treasury bills 34.0 — Total cash and cash equivalents 336.8 775.6 Restricted cash: Fiduciary assets 26.7 25.0 Letters of credit and cash on deposit 18.1 18.1 Total restricted cash 44.8 43.1 Total cash, cash equivalents, and restricted cash $ 381.6 $ 818.7 |
Restrictions on Cash and Cash Equivalents | The following table sets forth the cash, cash equivalents, and restricted cash (in millions): March 31, December 31, Cash and cash equivalents: Cash $ 141.4 $ 219.2 Money market funds 161.4 556.4 Treasury bills 34.0 — Total cash and cash equivalents 336.8 775.6 Restricted cash: Fiduciary assets 26.7 25.0 Letters of credit and cash on deposit 18.1 18.1 Total restricted cash 44.8 43.1 Total cash, cash equivalents, and restricted cash $ 381.6 $ 818.7 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | 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): March 31, 2022 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents: Money market funds $ 161.4 $ — $ — $ 161.4 Treasury bills 34.0 — — 34.0 Total cash equivalents 195.4 — — 195.4 Fixed maturities available-for-sale: U.S. government and agencies 14.9 — — 14.9 States, and other territories — 5.4 — 5.4 Corporate securities — 39.2 — 39.2 Foreign securities — 0.9 — 0.9 Residential mortgage-backed securities — 10.2 — 10.2 Commercial mortgage-backed securities — 6.2 — 6.2 Asset backed securities — 9.7 — 9.7 Total fixed maturities available-for-sale 14.9 71.6 — 86.5 Short term investments U.S. government and agencies 348.9 — — 348.9 Total financial assets $ 559.2 $ 71.6 $ — $ 630.8 Financial liabilities: Contingent consideration liability $ — $ — $ 14.1 $ 14.1 Public warrants 1.6 — — 1.6 Private placement warrants — 1.5 — 1.5 Total financial liabilities $ 1.6 $ 1.5 $ 14.1 $ 17.2 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 |
Liabilities Measured on at Fair Value, Unobservable Input Reconciliation | The table below presents the changes in the contingent consideration liability valued using Level 3 inputs (in millions): 2022 2021 Balance as of January 1, $ 11.6 $ 12.0 Payments of contingent consideration (0.7) (0.7) Changes in fair value 3.2 0.6 Balance as of March 31, $ 14.1 $ 11.9 The table below presents changes in the preferred stock warrant liability valued using Level 3 inputs (in millions): 2021 Balance as of January 1, $ 22.9 Changes in fair value 97.1 Balance as of March 31, $ 120.0 2021 Balance as of January 1, $ 113.3 Initial measurement of new derivative 2.8 Changes in fair value 39.3 Balance as of March 31, $ 155.4 |
Fair Value Measurement Inputs and Valuation Techniques | The following assumptions were used in determining fair value of the convertible preferred stock warrant liabilities: March 31, 2021 Fair value of Series A-2 Preferred Stock $ 59.10 Fair value of Series C-1 Preferred Stock $ 59.73 Exercise price A-2 Preferred Stock $ 1.57 Exercise price C-1 Preferred Stock $ 11.74 Expected term (in years) 1.6-6.0 Expected volatility 29.0%-43.8% Risk-free interest rate 0.1%-1.2% Expected dividend yield — % |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | March 31, 2022 December 31, 2021 Weighted- Average Useful Life Remaining (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) (in millions) Agency and carrier relationships 6.7 $ 13.5 $ (2.1) $ 11.4 $ 13.5 $ (1.7) $ 11.8 State licenses and domain name Indefinite 10.5 — 10.5 10.5 — 10.5 Customer relationships 3.0 13.7 (6.6) 7.1 13.7 (6.0) 7.7 Developed technology — — — — 3.6 (2.7) 0.9 VOBA — — — — 0.1 (0.1) — Other 6.5 2.0 (0.7) 1.3 2.0 (0.7) 1.3 Total intangible assets, net $ 39.7 $ (9.4) $ 30.3 $ 43.4 $ (11.2) $ 32.2 |
Schedule of Finite-Lived Intangible Assets | March 31, 2022 December 31, 2021 Weighted- Average Useful Life Remaining (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) (in millions) Agency and carrier relationships 6.7 $ 13.5 $ (2.1) $ 11.4 $ 13.5 $ (1.7) $ 11.8 State licenses and domain name Indefinite 10.5 — 10.5 10.5 — 10.5 Customer relationships 3.0 13.7 (6.6) 7.1 13.7 (6.0) 7.7 Developed technology — — — — 3.6 (2.7) 0.9 VOBA — — — — 0.1 (0.1) — Other 6.5 2.0 (0.7) 1.3 2.0 (0.7) 1.3 Total intangible assets, net $ 39.7 $ (9.4) $ 30.3 $ 43.4 $ (11.2) $ 32.2 |
Capitalized Internal Use Soft_2
Capitalized Internal Use Software (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Research and Development [Abstract] | |
Schedule of Capitalized Computer Software | March 31, December 31, (in millions) Capitalized internal use software $ 40.7 $ 34.5 Less: accumulated amortization (10.4) (8.6) Total capitalized internal use software $ 30.3 $ 25.9 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | March 31, December 31, (in millions) Prepaid expenses $ 26.1 $ 21.2 Claims receivable 25.0 24.4 Lease right-of-use assets 15.9 — Other 8.8 6.2 Total other assets $ 75.8 $ 51.8 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | March 31, December 31, (in millions) Claim payments outstanding $ 25.3 $ 23.2 Lease liability 16.6 — Advances from customers 13.7 8.7 Deferred revenue 10.8 11.2 Employee related accruals 8.1 8.5 Premium refund liability 6.1 4.8 Fiduciary liability 4.6 3.7 Accrued licenses and taxes 3.2 5.8 Warrant liability 3.1 4.3 Other 9.6 13.6 Total accrued expenses and other liabilities $ 101.1 $ 83.8 |
Loss and Loss Adjustment Expe_2
Loss and Loss Adjustment Expense Reserves (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance is summarized as follows for the three months ended March 31, (in millions): 2022 2021 Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of beginning of the period $ 260.8 $ 105.1 Reinsurance recoverables on unpaid losses (217.0) (92.1) Reserve for losses and LAE, net of reinsurance recoverables as of beginning of the period 43.8 13.0 Add: Incurred losses and LAE, net of reinsurance, related to: Current year 25.3 19.4 Prior years (2.8) (0.4) Total incurred 22.5 19.0 Deduct: Loss and LAE payments, net of reinsurance, related to: Current year 8.8 9.8 Prior year 10.4 4.4 Total paid 19.2 14.2 Reserve for losses and LAE, net of reinsurance recoverables at end of period 47.1 17.8 Add: Reinsurance recoverables on unpaid losses and LAE at end of period 235.3 150.1 Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of end of the period $ 282.4 $ 167.9 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Effects of Reinsurance | The following tables reflect amounts affecting the consolidated statements of operations and comprehensive loss for ceded reinsurance as of and for the three months ended March 31, 2022, and 2021 (in millions). For the Three Months Ended March 31, 2022 2021 Written premiums Earned premiums Loss and LAE incurred Written premiums Earned premiums Loss and LAE incurred Direct $ 117.0 $ 120.1 $ 90.9 $ 95.1 $ 71.0 $ 142.1 Assumed 0.1 — 0.3 4.1 3.4 5.3 Gross 117.1 120.1 91.2 99.2 74.4 147.4 Ceded (116.5) (111.1) (68.7) (92.0) (65.6) (128.4) Net $ 0.6 $ 9.0 $ 22.5 $ 7.2 $ 8.8 $ 19.0 |
Geographical Breakdown of Gro_2
Geographical Breakdown of Gross Written Premium (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Gross Written Premium by Geographical Areas | Gross written premium by state is as follows (in millions): Three Months Ended March 31, 2022 2021 Amount % of GWP Amount % of GWP State Texas $ 33.9 28.9 % $ 33.0 33.3 % California 22.1 18.9 % 18.9 19.1 % Florida 6.8 5.8 % 5.8 5.8 % Georgia 6.1 5.2 % 4.1 4.1 % Illinois 3.5 3.0 % 3.1 3.1 % Colorado 3.2 2.7 % 2.5 2.5 % Missouri 3.0 2.6 % 2.4 2.4 % Arizona 3.1 2.6 % 2.4 2.4 % Ohio 2.6 2.2 % 2.0 2.0 % New Jersey 2.6 2.2 % 2.2 2.2 % Other 30.2 25.8 % 22.8 23.0 % Total $ 117.1 100 % $ 99.2 100 % |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost | The weighted average remaining lease term and the weighted average discount rate for operating leases as of March 31, 2022 were as follows: Weighted average remaining lease term 4.29 Weighted average discount rate 3.38 % The following table presents supplemental cash flow information about the Company’s operating leases (in millions): Three Months Ended March 31, 2022 Cash paid for amounts included in measurement of liabilities Operating cash flows from operating leases $ (1.0) Right-of-use assets obtained in exchange for new operating liabilities $ — |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities by fiscal year as of March 31, 2022 are as follows (in millions): Operating Leases 2022 (Remainder) $ 2.9 2023 3.9 2024 4.0 2025 3.7 2026 2.7 Thereafter — Total undiscounted lease payments 17.2 Less: Imputed interest (0.6) Present value of lease payments 16.6 |
Stockholders_ Deficit (Tables)
Stockholders’ Deficit (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Share-based Payment Arrangement, Option, Activity | The following table summarizes option activity under the plans: Options Outstanding Weighted-Average Remaining Aggregate Intrinsic Value Number of Shares Weighted Average Exercise Price Contract Term Outstanding as of December 31, 2021 47,538,926 $ 1.39 8.30 $ 84.8 Granted — — Exercised (1,753,435) 0.64 Cancelled/Expired (1,336,079) 1.23 Outstanding as of March 31, 2022 44,449,412 $ 1.35 8.04 $ 45.5 Vested and exercisable as of March 31, 2022 17,879,890 $ 0.94 7.72 $ 21.2 |
Schedule of Unvested Restricted Stock Units Roll Forward | Number of Shares Weighted Average Grant-Date Fair Value per Share Unvested and outstanding as of December 31, 2021 27,170,930 $ 3.91 Granted 3,808,702 1.98 Vested (1,409,457) 3.93 Canceled and forfeited (1,546,494) 3.86 Unvested and outstanding as of March 31, 2022 28,023,681 $ 3.65 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | Total stock-based compensation expense, classified in the accompanying consolidated statements of operations and comprehensive loss was as follows (in millions): Three Months Ended March 31, 2022 2021 Losses and loss adjustment expenses $ 0.7 $ 0.1 Insurance related expenses 1.3 0.1 Technology and development 5.2 0.4 Sales and marketing 2.4 1.0 General and administrative 3.8 0.9 Total stock-based compensation expense $ 13.4 $ 2.5 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Net loss per share attributable to common stockholders was computed as follows: Three Months Ended March 31, 2022 2021 Numerator: Net loss attributable to Hippo – basic and diluted (in millions) $ (67.6) $ (195.2) Denominator: Weighted-average shares used in computing net loss per share attributable to Hippo — basic and diluted 561,620,061 95,970,269 Net loss per share attributable to Hippo — basic and diluted $ (0.12) $ (2.03) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows: March 31, 2022 2021 Convertible preferred stock (on an as if converted basis) — 305,887,443 Outstanding options 44,449,412 68,856,873 Warrants to purchase common shares 9,000,000 33,384,616 Warrants to purchase preferred shares — 17,344,906 Common stock subject to repurchase 4,251,406 12,003,660 RSU and PRSUs 29,792,100 — Convertible notes — 149,377,472 Total 87,492,918 586,854,969 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 31, 2022 | Jan. 01, 2022 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-02 [Member] | ||
Lease liability | $ 0 | $ 16.6 | |
ROU assets | $ 0 | $ 15.9 | |
Cumulative Effect, Period of Adoption, Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Lease liability | $ 17.4 | ||
ROU assets | 16.7 | ||
Deferred rent | $ (0.7) |
Investments - Fixed Maturities
Investments - Fixed Maturities Securities and Short-Term Investments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 89.5 | $ 55.6 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | (0.7) |
Fair Value | 86.5 | 54.9 |
Fair Value | 348.9 | 9.1 |
Amortized Cost | 438.7 | 64.7 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3.3) | (0.7) |
Total investments | 435.4 | 64 |
U.S. government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15.1 | 9.3 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (0.2) | 0 |
Fair Value | 14.9 | 9.3 |
Amortized Cost | 349.2 | 9.1 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (0.3) | 0 |
Fair Value | 348.9 | 9.1 |
States, and other territories | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5.8 | 5.8 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (0.4) | (0.1) |
Fair Value | 5.4 | 5.7 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 40.2 | 17.3 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (0.2) |
Fair Value | 39.2 | 17.1 |
Foreign securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 0.9 | 0.9 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 0.9 | 0.9 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10.9 | 10.8 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (0.7) | (0.2) |
Fair Value | 10.2 | 10.6 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6.6 | 4.8 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (0.4) | (0.1) |
Fair Value | 6.2 | 4.7 |
Asset backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10 | 6.7 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (0.3) | (0.1) |
Fair Value | $ 9.7 | $ 6.6 |
Investments - Continuous Loss P
Investments - Continuous Loss Position (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | $ 397.3 | $ 41.7 |
Less than 12 months, Gross Unrealized Losses | (1.2) | (0.7) |
12 months or longer, Fair Value | 31.2 | 0 |
12 months or longer, Gross Unrealized Losses | (2.1) | 0 |
Total, Fair Value | 428.5 | 41.7 |
Total, Gross Unrealized Losses | (3.3) | (0.7) |
U.S. government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 14.4 | |
Less than 12 months, Gross Unrealized Losses | (0.2) | |
12 months or longer, Fair Value | 0.5 | |
12 months or longer, Gross Unrealized Losses | 0 | |
Total, Fair Value | 14.9 | |
Total, Gross Unrealized Losses | (0.2) | |
States, and other territories | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 0.5 | 5.2 |
Less than 12 months, Gross Unrealized Losses | 0 | (0.1) |
12 months or longer, Fair Value | 4.9 | 0 |
12 months or longer, Gross Unrealized Losses | (0.4) | 0 |
Total, Fair Value | 5.4 | 5.2 |
Total, Gross Unrealized Losses | (0.4) | (0.1) |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 25.9 | 15.9 |
Less than 12 months, Gross Unrealized Losses | (0.4) | (0.2) |
12 months or longer, Fair Value | 10.8 | 0 |
12 months or longer, Gross Unrealized Losses | (0.6) | 0 |
Total, Fair Value | 36.7 | 15.9 |
Total, Gross Unrealized Losses | (1) | (0.2) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 3 | 10.5 |
Less than 12 months, Gross Unrealized Losses | (0.2) | (0.2) |
12 months or longer, Fair Value | 6.5 | 0 |
12 months or longer, Gross Unrealized Losses | (0.5) | 0 |
Total, Fair Value | 9.5 | 10.5 |
Total, Gross Unrealized Losses | (0.7) | (0.2) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 0 | 4.7 |
Less than 12 months, Gross Unrealized Losses | 0 | (0.1) |
12 months or longer, Fair Value | 4.3 | 0 |
12 months or longer, Gross Unrealized Losses | (0.4) | 0 |
Total, Fair Value | 4.3 | 4.7 |
Total, Gross Unrealized Losses | (0.4) | (0.1) |
Asset backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 4.6 | 5.4 |
Less than 12 months, Gross Unrealized Losses | (0.1) | (0.1) |
12 months or longer, Fair Value | 4.2 | 0 |
12 months or longer, Gross Unrealized Losses | (0.2) | 0 |
Total, Fair Value | 8.8 | 5.4 |
Total, Gross Unrealized Losses | (0.3) | $ (0.1) |
U.S. government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 348.9 | |
Less than 12 months, Gross Unrealized Losses | (0.3) | |
12 months or longer, Fair Value | 0 | |
12 months or longer, Gross Unrealized Losses | 0 | |
Total, Fair Value | 348.9 | |
Total, Gross Unrealized Losses | $ (0.3) |
Investments - Contractual Matur
Investments - Contractual Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
One year or less | $ 8.4 | |
After one year through five years | 46.8 | |
After five years | 6.8 | |
Amortized Cost | 89.5 | $ 55.6 |
Fair Value | ||
One year or less | 8.3 | |
After one year through five years | 45.6 | |
After five years | 6.5 | |
Fair Value | 86.5 | 54.9 |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Securities | 10.9 | |
Amortized Cost | 10.9 | 10.8 |
Fair Value | ||
Securities | 10.2 | |
Fair Value | 10.2 | 10.6 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Securities | 6.6 | |
Amortized Cost | 6.6 | 4.8 |
Fair Value | ||
Securities | 6.2 | |
Fair Value | 6.2 | 4.7 |
Asset backed securities | ||
Amortized Cost | ||
Securities | 10 | |
Amortized Cost | 10 | 6.7 |
Fair Value | ||
Securities | 9.7 | |
Fair Value | $ 9.7 | $ 6.6 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Fixed maturities income | $ 0.2 | $ 0.1 |
Short-term investment income | 0.2 | 0 |
Total gross investment income | 0.4 | 0.1 |
Investment expenses | 0 | 0 |
Net investment income | $ 0.4 | $ 0.1 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Securities on deposit with state regulatory authorities | $ 9 | $ 8.4 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 336.8 | $ 775.6 | ||
Restricted cash | 44.8 | 43.1 | ||
Total cash, cash equivalents, and restricted cash | 381.6 | 818.7 | $ 468.1 | $ 492.4 |
Cash | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 141.4 | 219.2 | ||
Money market funds | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 161.4 | 556.4 | ||
Treasury bills | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 34 | 0 | ||
Fiduciary assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | 26.7 | 25 | ||
Letters of credit and cash on deposit | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 18.1 | $ 18.1 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Cash equivalents | $ 195.4 | $ 556.4 |
Fixed maturities available-for-sale | 86.5 | 54.9 |
Short-term investments | 348.9 | 9.1 |
Total financial assets | 630.8 | 620.4 |
Financial liabilities: | ||
Contingent consideration liability | 14.1 | 11.6 |
Total financial liabilities | 17.2 | 15.9 |
Public warrants | ||
Financial liabilities: | ||
Warrants liabilities | 1.6 | 2.2 |
Private placement warrants | ||
Financial liabilities: | ||
Warrants liabilities | 1.5 | 2.1 |
U.S. government and agencies | ||
Financial assets: | ||
Fixed maturities available-for-sale | 14.9 | 9.3 |
Short-term investments | 348.9 | 9.1 |
States, and other territories | ||
Financial assets: | ||
Fixed maturities available-for-sale | 5.4 | 5.7 |
Corporate securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 39.2 | 17.1 |
Foreign securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0.9 | 0.9 |
Residential mortgage-backed securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 10.2 | 10.6 |
Commercial mortgage-backed securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 6.2 | 4.7 |
Asset backed securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 9.7 | 6.6 |
Money market funds | ||
Financial assets: | ||
Cash equivalents | 161.4 | 556.4 |
Treasury bills | ||
Financial assets: | ||
Cash equivalents | 34 | |
Level 1 | ||
Financial assets: | ||
Cash equivalents | 195.4 | 556.4 |
Fixed maturities available-for-sale | 14.9 | 9.3 |
Total financial assets | 559.2 | 565.7 |
Financial liabilities: | ||
Contingent consideration liability | 0 | 0 |
Total financial liabilities | 1.6 | 2.2 |
Level 1 | Public warrants | ||
Financial liabilities: | ||
Warrants liabilities | 1.6 | 2.2 |
Level 1 | Private placement warrants | ||
Financial liabilities: | ||
Warrants liabilities | 0 | 0 |
Level 1 | U.S. government and agencies | ||
Financial assets: | ||
Fixed maturities available-for-sale | 14.9 | 9.3 |
Short-term investments | 348.9 | 0 |
Level 1 | States, and other territories | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Level 1 | Corporate securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Level 1 | Foreign securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Level 1 | Residential mortgage-backed securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Level 1 | Commercial mortgage-backed securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Level 1 | Asset backed securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Level 1 | Money market funds | ||
Financial assets: | ||
Cash equivalents | 161.4 | 556.4 |
Level 1 | Treasury bills | ||
Financial assets: | ||
Cash equivalents | 34 | |
Level 2 | ||
Financial assets: | ||
Cash equivalents | 0 | 0 |
Fixed maturities available-for-sale | 71.6 | 45.6 |
Total financial assets | 71.6 | 54.7 |
Financial liabilities: | ||
Contingent consideration liability | 0 | 0 |
Total financial liabilities | 1.5 | 2.1 |
Level 2 | Public warrants | ||
Financial liabilities: | ||
Warrants liabilities | 0 | 0 |
Level 2 | Private placement warrants | ||
Financial liabilities: | ||
Warrants liabilities | 1.5 | 2.1 |
Level 2 | U.S. government and agencies | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Short-term investments | 0 | 9.1 |
Level 2 | States, and other territories | ||
Financial assets: | ||
Fixed maturities available-for-sale | 5.4 | 5.7 |
Level 2 | Corporate securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 39.2 | 17.1 |
Level 2 | Foreign securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0.9 | 0.9 |
Level 2 | Residential mortgage-backed securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 10.2 | 10.6 |
Level 2 | Commercial mortgage-backed securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 6.2 | 4.7 |
Level 2 | Asset backed securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 9.7 | 6.6 |
Level 2 | Money market funds | ||
Financial assets: | ||
Cash equivalents | 0 | 0 |
Level 2 | Treasury bills | ||
Financial assets: | ||
Cash equivalents | 0 | |
Level 3 | ||
Financial assets: | ||
Cash equivalents | 0 | 0 |
Fixed maturities available-for-sale | 0 | 0 |
Total financial assets | 0 | 0 |
Financial liabilities: | ||
Contingent consideration liability | 14.1 | 11.6 |
Total financial liabilities | 14.1 | 11.6 |
Level 3 | Public warrants | ||
Financial liabilities: | ||
Warrants liabilities | 0 | 0 |
Level 3 | Private placement warrants | ||
Financial liabilities: | ||
Warrants liabilities | 0 | 0 |
Level 3 | U.S. government and agencies | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Short-term investments | 0 | 0 |
Level 3 | States, and other territories | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Level 3 | Corporate securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Level 3 | Foreign securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Level 3 | Residential mortgage-backed securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Level 3 | Commercial mortgage-backed securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Level 3 | Asset backed securities | ||
Financial assets: | ||
Fixed maturities available-for-sale | 0 | 0 |
Level 3 | Money market funds | ||
Financial assets: | ||
Cash equivalents | 0 | $ 0 |
Level 3 | Treasury bills | ||
Financial assets: | ||
Cash equivalents | $ 0 |
Fair Value Measurement - Change
Fair Value Measurement - Changes in Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Changes in fair value | $ (1.2) | $ 0 |
Preferred Stock Warrant | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Liability, beginning balance | 22.9 | |
Changes in fair value | 97.1 | |
Liability, ending balance | 120 | |
Contingent Consideration | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Liability, beginning balance | 11.6 | 12 |
Payments of contingent consideration | (0.7) | (0.7) |
Changes in fair value | 3.2 | 0.6 |
Liability, ending balance | $ 14.1 | 11.9 |
Embedded Derivative Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Liability, beginning balance | 113.3 | |
Initial measurement of new derivative | 2.8 | |
Changes in fair value | 39.3 | |
Liability, ending balance | $ 155.4 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Aug. 02, 2021shares | |
Minimum | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Convertible promissory notes, conversion period | 3 months 18 days | ||
Maximum | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Convertible promissory notes, conversion period | 2 years 10 months 24 days | ||
Discount rate | Income approach | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Convertible promissory notes, measurement input | 0.10 | ||
Convertible Preferred Stock | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Number of securities called by warrants or rights (in shares) | 2,494,116 | ||
Common Stock | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Number of securities called by each warrants or rights (in shares) | 17,344,906 |
Fair Value Measurement - Assump
Fair Value Measurement - Assumptions (Details) | Mar. 31, 2021$ / shares |
Preferred Stock Warrant | Minimum | |
Temporary Equity [Line Items] | |
Expected term (in years) | 1 year 7 months 6 days |
Preferred Stock Warrant | Maximum | |
Temporary Equity [Line Items] | |
Expected term (in years) | 6 years |
Preferred Stock Warrant | Expected volatility | Minimum | |
Temporary Equity [Line Items] | |
Measurement input | 0.290 |
Preferred Stock Warrant | Expected volatility | Maximum | |
Temporary Equity [Line Items] | |
Measurement input | 0.438 |
Preferred Stock Warrant | Risk-free interest rate | Minimum | |
Temporary Equity [Line Items] | |
Measurement input | 0.001 |
Preferred Stock Warrant | Risk-free interest rate | Maximum | |
Temporary Equity [Line Items] | |
Measurement input | 0.012 |
Preferred Stock Warrant | Expected dividend yield | |
Temporary Equity [Line Items] | |
Measurement input | 0 |
Preferred A-2 Stock | Fair value | |
Temporary Equity [Line Items] | |
Measurement input | 59.10 |
Preferred A-2 Stock | Exercise price | |
Temporary Equity [Line Items] | |
Measurement input | 1.57 |
Preferred C-1 Stock | Fair value | |
Temporary Equity [Line Items] | |
Measurement input | 59.73 |
Preferred C-1 Stock | Exercise price | |
Temporary Equity [Line Items] | |
Measurement input | 11.74 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ (9.4) | $ (11.2) | |
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 39.7 | 43.4 | |
Accumulated Amortization | (9.4) | (11.2) | |
Net Carrying Amount | 30.3 | 32.2 | |
Amortization expense related to intangible assets | 1.9 | $ 1.4 | |
State licenses and domain name | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Net Carrying Amount | $ 10.5 | 10.5 | |
Agency and carrier relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted- Average Useful Life Remaining (in years) | 6 years 8 months 12 days | ||
Gross Carrying Amount | $ 13.5 | 13.5 | |
Accumulated Amortization | (2.1) | (1.7) | |
Net Carrying Amount | 11.4 | 11.8 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ (2.1) | (1.7) | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted- Average Useful Life Remaining (in years) | 3 years | ||
Gross Carrying Amount | $ 13.7 | 13.7 | |
Accumulated Amortization | (6.6) | (6) | |
Net Carrying Amount | 7.1 | 7.7 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Accumulated Amortization | (6.6) | (6) | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 0 | 3.6 | |
Accumulated Amortization | 0 | (2.7) | |
Net Carrying Amount | 0 | 0.9 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Accumulated Amortization | 0 | (2.7) | |
VOBA | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 0 | 0.1 | |
Accumulated Amortization | 0 | (0.1) | |
Net Carrying Amount | 0 | 0 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ 0 | (0.1) | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted- Average Useful Life Remaining (in years) | 6 years 6 months | ||
Gross Carrying Amount | $ 2 | 2 | |
Accumulated Amortization | (0.7) | (0.7) | |
Net Carrying Amount | 1.3 | 1.3 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ (0.7) | $ (0.7) |
Capitalized Internal Use Soft_3
Capitalized Internal Use Software (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Research and Development [Abstract] | |||
Capitalized internal use software | $ 40.7 | $ 34.5 | |
Less: accumulated amortization | (10.4) | (8.6) | |
Total capitalized internal use software | 30.3 | $ 25.9 | |
Amortization expense | $ 1.8 | $ 1 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid Expense | $ 26.1 | $ 21.2 |
Claims receivable | 25 | 24.4 |
Lease right-of-use assets | $ 15.9 | $ 0 |
Lease right-of-use assets [Extensible Enumeration] | Total other assets | Total other assets |
Other | $ 8.8 | $ 6.2 |
Total other assets | $ 75.8 | $ 51.8 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Claim payments outstanding | $ 25.3 | $ 23.2 |
Lease liability | $ 16.6 | $ 0 |
Lease liability [Extensible Enumeration] | Total accrued expenses and other liabilities | Total accrued expenses and other liabilities |
Advances from customers | $ 13.7 | $ 8.7 |
Deferred revenue | 10.8 | 11.2 |
Employee related accruals | 8.1 | 8.5 |
Premium refund liability | 6.1 | 4.8 |
Fiduciary liability | 4.6 | 3.7 |
Accrued licenses and taxes | 3.2 | 5.8 |
Warrant liability | 3.1 | 4.3 |
Other | 9.6 | 13.6 |
Total accrued expenses and other liabilities | $ 101.1 | $ 83.8 |
Loss and Loss Adjustment Expe_3
Loss and Loss Adjustment Expense Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
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 | $ 260.8 | $ 105.1 |
Reinsurance recoverables on unpaid losses | (217) | (92.1) |
Reserve for losses and LAE, net of reinsurance recoverables as of beginning of the period | 43.8 | 13 |
Add: Incurred losses and LAE, net of reinsurance, related to: | ||
Current year | 25.3 | 19.4 |
Prior years | (2.8) | (0.4) |
Total incurred | 22.5 | 19 |
Deduct: Loss and LAE payments, net of reinsurance, related to: | ||
Current year | 8.8 | 9.8 |
Prior year | 10.4 | 4.4 |
Total paid | 19.2 | 14.2 |
Reserve for losses and LAE, net of reinsurance recoverables at end of period | 47.1 | 17.8 |
Add: Reinsurance recoverables on unpaid losses and LAE at end of period | 235.3 | 150.1 |
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of end of the period | 282.4 | $ 167.9 |
Attritional reserves release | 2.1 | |
Catastrophe reserves release | $ 0.7 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)reinsurer | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Effects of Reinsurance [Line Items] | |||
Loss on uncollectible accounts in period | $ 0 | $ 0 | |
Provision for sliding scale commission | 9,200,000 | $ 8,600,000 | |
Receivable for sliding scale commission | 3,100,000 | 2,700,000 | |
Provision for loss participation feature | $ 16,400,000 | 8,300,000 | |
Term-based agreement | |||
Effects of Reinsurance [Line Items] | |||
Number of third-party reinsures | reinsurer | 2 | ||
Percentage attributable to program | 33.00% | ||
Agreement term | 3 years | ||
Reinsured risk, percentage | 10.00% | ||
Excess of Loss | |||
Effects of Reinsurance [Line Items] | |||
Excess retention, year return period, ratio | 0.004 | ||
Excess of Loss | Maximum | |||
Effects of Reinsurance [Line Items] | |||
Excess retention, percentage | 0.40% | ||
Per-risk Reinsurance | Minimum | |||
Effects of Reinsurance [Line Items] | |||
Excess retention, amount | $ 500,000 | ||
Proportional and Excess of Loss | Maximum | |||
Effects of Reinsurance [Line Items] | |||
Ceded risk, percentage | 100.00% | ||
Proportional and Excess of Loss | Minimum | |||
Effects of Reinsurance [Line Items] | |||
Ceded risk, percentage | 75.00% |
Reinsurance - Ceded Reinsurance
Reinsurance - Ceded Reinsurance (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Written premiums | ||
Direct | $ 117 | $ 95.1 |
Assumed | 0.1 | 4.1 |
Gross | 117.1 | 99.2 |
Ceded | (116.5) | (92) |
Net | 0.6 | 7.2 |
Earned premiums | ||
Direct | 120.1 | 71 |
Assumed | 0 | 3.4 |
Gross | 120.1 | 74.4 |
Ceded | (111.1) | (65.6) |
Net | 9 | 8.8 |
Loss and LAE incurred | ||
Direct | 90.9 | 142.1 |
Assumed | 0.3 | 5.3 |
Gross | 91.2 | 147.4 |
Ceded | (68.7) | (128.4) |
Net | $ 22.5 | $ 19 |
Geographical Breakdown of Gro_3
Geographical Breakdown of Gross Written Premium (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Gross Written Premium [Line Items] | ||
Amount | $ 117.1 | $ 99.2 |
Geographic Concentration Risk | Gross written premium | ||
Gross Written Premium [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Texas | ||
Gross Written Premium [Line Items] | ||
Amount | $ 33.9 | $ 33 |
Texas | Geographic Concentration Risk | Gross written premium | ||
Gross Written Premium [Line Items] | ||
Concentration risk, percentage | 28.90% | 33.30% |
California | ||
Gross Written Premium [Line Items] | ||
Amount | $ 22.1 | $ 18.9 |
California | Geographic Concentration Risk | Gross written premium | ||
Gross Written Premium [Line Items] | ||
Concentration risk, percentage | 18.90% | 19.10% |
Florida | ||
Gross Written Premium [Line Items] | ||
Amount | $ 6.8 | $ 5.8 |
Florida | Geographic Concentration Risk | Gross written premium | ||
Gross Written Premium [Line Items] | ||
Concentration risk, percentage | 5.80% | 5.80% |
Georgia | ||
Gross Written Premium [Line Items] | ||
Amount | $ 6.1 | $ 4.1 |
Georgia | Geographic Concentration Risk | Gross written premium | ||
Gross Written Premium [Line Items] | ||
Concentration risk, percentage | 5.20% | 4.10% |
Illinois | ||
Gross Written Premium [Line Items] | ||
Amount | $ 3.5 | $ 3.1 |
Illinois | Geographic Concentration Risk | Gross written premium | ||
Gross Written Premium [Line Items] | ||
Concentration risk, percentage | 3.00% | 3.10% |
Colorado | ||
Gross Written Premium [Line Items] | ||
Amount | $ 3.2 | $ 2.5 |
Colorado | Geographic Concentration Risk | Gross written premium | ||
Gross Written Premium [Line Items] | ||
Concentration risk, percentage | 2.70% | 2.50% |
Missouri | ||
Gross Written Premium [Line Items] | ||
Amount | $ 3 | $ 2.4 |
Missouri | Geographic Concentration Risk | Gross written premium | ||
Gross Written Premium [Line Items] | ||
Concentration risk, percentage | 2.60% | 2.40% |
Arizona | ||
Gross Written Premium [Line Items] | ||
Amount | $ 3.1 | $ 2.4 |
Arizona | Geographic Concentration Risk | Gross written premium | ||
Gross Written Premium [Line Items] | ||
Concentration risk, percentage | 2.60% | 2.40% |
Ohio | ||
Gross Written Premium [Line Items] | ||
Amount | $ 2.6 | $ 2 |
Ohio | Geographic Concentration Risk | Gross written premium | ||
Gross Written Premium [Line Items] | ||
Concentration risk, percentage | 2.20% | 2.00% |
New Jersey | ||
Gross Written Premium [Line Items] | ||
Amount | $ 2.6 | $ 2.2 |
New Jersey | Geographic Concentration Risk | Gross written premium | ||
Gross Written Premium [Line Items] | ||
Concentration risk, percentage | 2.20% | 2.20% |
Other | ||
Gross Written Premium [Line Items] | ||
Amount | $ 30.2 | $ 22.8 |
Other | Geographic Concentration Risk | Gross written premium | ||
Gross Written Premium [Line Items] | ||
Concentration risk, percentage | 25.80% | 23.00% |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - Pending Litigation | Nov. 19, 2021cause |
Litigation, Hippo and Chief Executive Officer Named Defendants | |
Loss Contingencies [Line Items] | |
Loss contingency, pending causes of action, number | 6 |
Litigation, Hippo Named Defendant Only | |
Loss Contingencies [Line Items] | |
Loss contingency, pending causes of action, number | 2 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Lessee, operating lease, renewal term | 5 years | |
Operating lease, expense | $ 1 | |
Operating lease, rent expense | $ 0.7 | |
Lessee, operating lease, lease not yet commenced, liability | $ 7.2 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rate (Details) | Mar. 31, 2022 |
Leases [Abstract] | |
Weighted average remaining lease term | 4 years 3 months 14 days |
Weighted average discount rate | 3.38% |
Leases - Maturity (Details)
Leases - Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 (Remainder) | $ 2.9 | |
2023 | 3.9 | |
2024 | 4 | |
2025 | 3.7 | |
2026 | 2.7 | |
Thereafter | 0 | |
Total undiscounted lease payments | 17.2 | |
Less: Imputed interest | (0.6) | |
Present value of lease payments | $ 16.6 | $ 0 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ (1) |
Right-of-use assets obtained in exchange for new operating liabilities | $ 0 |
Stockholders_ Equity - Narrativ
Stockholders’ Equity - Narrative (Details) - USD ($) | Aug. 02, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Aggregate intrinsic value of options exercised | $ 2,500,000 | $ 34,300,000 | ||
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) | 2,362,894 | |||
Early exercise of stock options liability for unvested awards | $ 2,000,000 | $ 2,200,000 | ||
Number of shares subject to repurchase related to early exercise of stock option (in shares) | 1,888,525 | 2,060,221 | ||
Share-based compensation expense | $ 13,400,000 | $ 2,500,000 | ||
the 2019 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase price of common stock, percent | 100.00% | |||
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, maximum | 5.00% | |||
2021 Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
2021 Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 25,200,000 | |||
Unrecognized compensation cost, period for recognition | 2 years 2 months 12 days | |||
Options | the 2019 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term period | 10 years | |||
Vesting period | 4 years | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 90,900,000 | |||
Unrecognized compensation cost, period for recognition | 3 years 1 month 6 days | |||
Restricted Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Restricted Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Restricted Stock Units | the 2019 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Performance Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 18 months | |||
Unrecognized compensation cost | $ 3,900,000 | |||
Unrecognized compensation cost, period for recognition | 6 months | |||
Share-based compensation expense | $ 2,300,000 | |||
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase price of common stock, percent | 85.00% | |||
Number of shares authorized for issuance (in shares) | 13,000,000 | |||
Percentage of issued and outstanding stock, maximum | 1.00% | |||
Maximum employee subscription amount | $ 25,000 | |||
Look back feature | 6 months | |||
Issued (in shares) | 0 |
Stockholders_ Equity - Stock Op
Stockholders’ Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Options Outstanding | ||
Outstanding, beginning balance (in shares) | 47,538,926 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (1,753,435) | |
Cancelled/Expired (in shares) | (1,336,079) | |
Outstanding, ending balance (in shares) | 44,449,412 | 47,538,926 |
Vested and exercisable (in shares) | 17,879,890 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in dollar per share) | $ 1.39 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0.64 | |
Cancelled/Expired (in dollars per share) | 1.23 | |
Outstanding, ending balance (in dollar per share) | 1.35 | $ 1.39 |
Vested and exercisable (in dollars per share) | $ 0.94 | |
Additional Disclosures | ||
Outstanding, weighted-average remaining, contract term (in years) | 8 years 14 days | 8 years 3 months 18 days |
Outstanding, aggregate intrinsic value | $ 45.5 | $ 84.8 |
Vested and exercisable, weighted-average remaining, contract term (in years) | 7 years 8 months 19 days | |
Vested and exercisable, aggregate intrinsic value | $ 21.2 |
Stockholders_ Equity - Restrict
Stockholders’ Equity - Restricted Stock Units Activity (Details) - RSUs | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Shares | |
Unvested and outstanding, beginning balance (in shares) | shares | 27,170,930 |
Granted (in shares) | shares | 3,808,702 |
Vested (in shares) | shares | (1,409,457) |
Canceled and forfeited (in shares) | shares | (1,546,494) |
Unvested and outstanding, ending balance (in shares) | shares | 28,023,681 |
Weighted Average Grant-Date Fair Value per Share | |
Unvested and outstanding, beginning balance (in dollars per share) | $ / shares | $ 3.91 |
Granted (in dollars per share) | $ / shares | 1.98 |
Vested (in dollars per share) | $ / shares | 3.93 |
Canceled and forfeited (in dollars per share) | $ / shares | 3.86 |
Unvested and outstanding, ending balance (in dollars per share) | $ / shares | $ 3.65 |
Stockholders_ Equity - Share-ba
Stockholders’ Equity - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 13.4 | $ 2.5 |
Losses and loss adjustment expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 0.7 | 0.1 |
Insurance related expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 1.3 | 0.1 |
Technology and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 5.2 | 0.4 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 2.4 | 1 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 3.8 | $ 0.9 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate reconciliation, percent | (0.30%) | (0.10%) |
Unrecognized tax benefits | $ 1,100,000 | $ 0 |
Income tax interest or penalties incurred | $ 0 | $ 0 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Computation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to Hippo - basic | $ (67.6) | $ (195.2) |
Net loss attributable to Hippo - diluted | $ (67.6) | $ (195.2) |
Weighted-average shares used in computing net loss per share attributable to Hippo - basic (in shares) | 561,620,061 | 95,970,269 |
Weighted-average shares used in computing net loss per share attributable to Hippo - diluted (in shares) | 561,620,061 | 95,970,269 |
Net loss per share attributable to Hippo - basic (in dollars per share) | $ (0.12) | $ (2.03) |
Net loss per share attributable to Hippo - diluted (in dollars per share) | $ (0.12) | $ (2.03) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 87,492,918 | 586,854,969 |
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 | 305,887,443 |
Outstanding options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 44,449,412 | 68,856,873 |
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 | 33,384,616 |
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) | 4,251,406 | 12,003,660 |
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) | 29,792,100 | 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 | 149,377,472 |