Hippo (HIPO)

Cliff Gallant VP-IR
Assaf Wand CEO
Stewart Ellis CFO
Rick McCathron President
Michael Phillips Morgan Stanley
Yaron Kinar Jefferies
Matt Carletti JMP
Alex Scott Goldman Sachs
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good afternoon. Thank you for attending today's Hippo Fourth Quarter 2021 Earnings Call. My name is Heena and I will be your moderator for today's call. [Operator Instructions] I would now like to pass the conference over to our host [technical difficulty]. Please go ahead.

Cliff Gallant

operator. you, Thank and XXXX everybody for Hippo's joining Good conference thank call. quarter earnings fourth afternoon you Earlier issued which is today, quarter also fourth Hippo available a shareholder at investors.hippo.com. announcing letter results, Officer, will Hippo's and discussion Financial Ellis. Stewart Officer, President, today's Leading Chief Chief Executive Rick Assaf be McCathron; Wand;

Following management's up will we the question. to prepared remarks, open call

of our contain forward-looking statements, as and we like remind date to current expectations, Before the is you that on information presentation. predictions, about business this begin, I'd our that based discussion will of other expectations

and Forward-looking to, statements and include, our expectations but performance are not or limited predictions and of business competitive in conditions industry outlook. financial

from Forward-looking Hippo's cause statements results from today. to X-K uncertainties, and subject and/or those risks, materially filed our forecasts, forth set other our factors Form including in actual to that differ will results are historical

to For our in call cautionary that the we more make failing. wherever factors discussed applicable forward-looking to please this All information, the SEC they appear. statements any uncertainty during we make refer in are

You and or any forward-looking disclosed result should by obligation reliance whether is disclaim other no as forward-looking Do updating filing. for new statements of and risks any future place on required not law. under uncertainties the the otherwise, SEC information, and as except in to discussed otherwise Hippo a factors revise or responsibility offering consider carefully statements, undue as events

as total and call today's premium to we non-GAAP During generated will such also EBITDA. measures financial adjusted refer

the and on And which I'll has the GAAP to financial XXXX letter, fourth be furnished call the with Co-founder that, Our CEO. to found quarter Wand, and GAAP a full our results can with SEC reconciliation our to of Assaf measures turn description available non-GAAP shareholder over website. and been in

Assaf Wand

premium mark including annual generated for Thank was you, public year Hippo which and Good XXXX the total $XXX Hippo, shared million. crosses listing afternoon, of a everybody. Cliff.

tech for the growth losses in point for retails. by and Some our such as home oriented tempered markets, markets pressure major of these catastrophe headwinds equity cost silo geographic many in successes were loss companies, heightened

However, to the volatility financially We be we executing financial home laser-focused position to of long-term a are protecting of the home protection. and the the home market weather on ownership. insurance Hippo and with year operationally believe vision of majority ended against conforming our the in strong industry the best our patiently proactive

total Generated by in growth XX% rate of retention XXXX supported premium Our people XX% Premium has validated want that.

in our extend months, through new Lennar by through broadening existing builders So, like are to reach states to the geographic major would plan extend key as our adding we major Brothers. Toll and In the we states our XX as We such XXXX. footprint northeast to US home grow well continue coming presence products. from with as our partnerships in within

are We built homeownership Through our sourcing owners with homes with technology of we're our who tech-enabled newly best to improve use to major at their improve I ratio. potential scheme. customers service homeowners some forefront by the making progress companies, we financial partnership am critical at when strong pleased to our the is reach protection home able undermine. are moment the to loss

from Our XX% point QX year, the five-year and seasonality also quarter of of gross part, benefiting in sales loss was the reserve ratio best from of of releases period.

geographic improving progress view better diversity, to we many given this are We area on pressures pricing, particularly encouraging our entering our as calibrate We part. loss technology markets. our the using loss by in new mature ratio as and our increasing

XX renew rated a up a Despite X renewal is pressure, the reinsurance A-minus in of from panel its with was reinsurers. market which XXXX. higher terms general. successful also hardening prices, of reinsurance in in Hippo under and to panel conditions We have were able mainstream This

are we able are partners in key and to continued Hippo. to our for grateful future underwriting examine practices a Technology and insurance differentiator results. Our remains have to support confidence closely our

easing preventative to through preventative through customers home us can either inspect leading leverage technology repair live help we forces home rent person maintenance video their the through and First, we in customer's or homes our to often home inspection facilitate measures. health

and We offer customers be, are might company to consistency experience and operations created daily from celebrating partner are Technology as our customer long-serving losses. inception through who way will modern end-to-end with newly Harpaz, following insurance their Click the our position productivity of product his to support of customer oversee the technology a insurance our like scale support. to to also us at leverage would Ran also claim to reliability. modern the Ran of that responsibilities Center build prevent Hippo, What current technology Security Chief to and customers customer Recognizing tech with actually we our role use maintain or COO. their also Home company leveraging and All and discounts turbocharge Officer agents. not one technology Hippo, help underwriting we all adjusting Mr. is stack

unfortunate be supporting our that difficult Ms. to Hanson, the XXX help first will particularly the customers while major in hiring Attracting we prepare in enhance Chief XXXX, excited talent capabilities top Hiscox of people. our Another pharmacy expertise. Grace Grace environment, service. very claims to happen, Board for was despite to e-bookings the across customer Starting do to year day we're a working our Hippo When claims. to prevent first extended in a become welcome we our and with Claims events our accomplishment range formerly to Officer prioritize we

the share Hippo's we're of modernize protect joy in and prospect with home insurance and we ever While the long-term than lifting, confidence ability price have XXXX more to August homeownership. our performance since unsatisfied

about I our President, to Now, little our Rick the talk bit more over a call to McCathron. hand operation, insurance

Rick McCathron

disruption a the responsiveness industry. costs, previously require was Thanks, Assaf. insurance home of of supply will unpredictable seen a environment to inflationary XXXX the in long-term and homeowners have volatility, industry. the preview activity, not for We believe providers Increased climate repair level

We of by engine technology the to developing introducing we our option such additional for platform coverage challenges. data. underwriting well December, position In our have latest and increased rolled out been iteration

added granularity and with have in better We models our risk. matching price our

number preferred to strategy risks, competitive more sectors, Hippo's While set see reductions. we enabling us giving of for pricing preferred is our targeted will increases, increasing re-underwriting Ally of Incline, In price additional avenues done for markets, rating for adding We've of out the see Ally our period. rate and which even this also significant Part others customers file example, XX% customers of approximately utilizing see in additional opening some have segments. decrease. begun will pricing Texas, for rolling a existing rates multi-carrier strategy Texas will

are builders Our with is aligned with having profitable distribution profitable fastest-growing home profitability. related a partnerships also positive countrywide channel channel. on impact portfolio continues that and These growth. our partnerships This most to it is indicate

rate underwriting We activity accelerate or in One point not changes. rate filed area. any allows have last us is pricing tech noting to actions worth this and our stack how

to Under are systems, were variables, flexible organization to introduced months use trend do meaning they the IT to and coverage these stack be to such specs tech enables The after as in has changes pick carrier frequently advance. our been the underwriting real-time new legacy timeline we've Texas stack, three Our as time changes more more regulatory enabled new to the we our launch us With provided our soon the source, traditional recent data new quickly. rate we in allows approval. factors. data to restriction. and extra submitted, state. rate be for required change us and receive In proposals and filings, The being us can loss immediately submissions program shorten to to able results finalize the our most tech

as XXXX. we And inflation see to able a an rig we're area include in our our example, selections. view major As to of lock

our last approach renewal puts to place individual portfolio. new a all, we enable and our profitable for accumulated to in we've adjustment. update comes to add a We pricing in all think their us policy, simply constantly for protect the When to our up each updating don't segmented since also XXXX. renewal, it re-underwrite in customers we multi-pronged homes. the inflation data policy growth All drive We properly an in mechanically re-underwrite risk great

to it on to our over progress. who Stewart, update pass you will Now, financial I'd like

Stewart Ellis

everyone. year-over-year to Thanks, XX% Total and XX% grew the $XXX hello Generated Premium to Rich, and in year. million grew QX year-over-year for full reach million $XXX

continue Our remained customers premium retention high with an at product. that to be indicator service and our our XX%, pleased

before our re-positioned XX to total directly our of our from partnerships customers regional said was across in Hippo Texas large their with life, by our and these California for or our Hippo or agent policy grew whether or to channels within many we're of of we We diversify we through financial where have one distribution institutions. states including growth mix independent happy way Our our throughout exposure. states homebuilders as spread each purchase

We XX% expect in for major million. are $XXX of $XX Revenue to full-year Generated states range additional in XXXX. in to year-over-year. Premium million was launch XXXX, the million the $XXX total targeting we of QX And up

we stream sheet for retain customers. or us and and fee agency premiums by from to commission balance service other include well revenue Our reinsurers paid carrier they exceeding retain, income earned on sourcing on that and/or exchange risk growing customers business as of as and MGA, their our

recurring our rating business model. XXXX, business our $XXX and insurance revenue that our its third-party with expect revenue program insurance and to rate funding a expect service stream Spinnaker In income earnings be commission-based administrators, and our share increased we A we expand fee will Over million. we company, the of through and will of $XXX we from fee Finally, affiliate, generate time, in range growth through A-minus to and stable a as our our GDP income. growth an earning rate million continue wholly-owned derived of will feed Beth,

best to report to P&L, continue gross we pleased XX% of progress quarter gross ratio that Moving QX's loss down our our loss XXXX. the improving I'm is ratio. and of make

Given We're our and ratios meaningful in of expect intermediate our seasonality weather historical each while we continuing patterns loss improvement goal level quarter of industry making grow strides improvement. great expect XXXX, don't to but do we events, on of catastrophic each quickly. reach initiatives sequential of to year-over-year

loss XX% events ratio. The largest XXth. the Non-PCS of During losses catastrophic accounted gross additional for December for loss XX%. our on large Colorado events accounted these fourth in fire an Marshall the of PCS was quarter,

Our gross a our apparels. on held These benefited had development XXXX leases loss positive gross ratio all of ratio loss XX%. proprietary due from to in QX across favorable re-leases also reserves impact our of

As achieves we geographic to expect profit large business volatility diversification, our loss decline. more events and to and balanced to help matures go and

of all reinsurance We insurance rated program counts AM a total collateralized. XX homeowners primary placed hardening them Best X better now excellent, we either to XXXX. reinsurance. Turning are share to or are for by renewed our our re-insurers, market, and Despite successfully expanded from appropriately A-minus,

As a signed one-third multi-year term. will from XXXX reminder, reinsurance approximately our end of the we separate for at the of we reinsurance XXXX. also three-year the have of be second a treaty capacity

expect versus return may pro after-loss increasing large way, XX%. subsidiaries our of from coverage single to in by buy a underwrites insurance probability XXXX impact our risk purchase the excessive Treaty loss losses We expense through occurrence in To number customers marketing approximately reinsurance non-proportional of which on and from million feature, say the period. our catastrophes sheets of retained us that protecting the it our of is prior-year rata year program $XX.X balance another Reinsurance increased company. that the captive severe This our retain $XX.X the excess our in all coverage. exceeds less, We We premium from loss provides Proportional purchases that retention reinsurance protection single on of events. catastrophic protection reduced And the participation million like the to or [indiscernible] MGA company participation does could most QX event. X.X% homeowners' XX% in the Sales include company the quarter. but or

$XX.X million team quarter, versus of oriented we the prior-year expenses Valley a would are company of customers the employees is and customer million that As our technology $X.X ecosystem, $XX.X reflecting million in General increased improve continue a Silicon versus talent Nearly and to have. the and backbone prior-year proud and with the our were in efficiency our offering, development the of in to in on be profile platform. in our our potential of Technology continue to company cost increases confidence stock-based any $X.X we quarter. raising API brand quarter have Technology administrative were in QX the key KPIs, operating we of increased nationwide. with compensation. public our Hippo relentlessly the invest and see the progress million expenses to

year, end at $XXX.X or equivalent, and was net cash was in versus on to our growth million $XXX a $XXX quarter per a compared for as like $XX.X attributable of turn share year remain in the million in Net for to and business. the full-year loss ratio $XX.X million Assaf, expect summarize $XX.X remarks. a well investment. our $XXX XXX% EBITDA XXXX quarter. overall cash, extended million, Hippo gross and our improvement. or listening million, per a in outlook major We diversify barring stood for Adjusted now I'd reach of XXX%, under period develop for growth an revenue from investments closing strong PGP confident of we down for it the we loss XXXX the share at material $XX the as back to prior million further to $X.XX profitable to and loss of million million To loss range guidance $X.XX year quarter. loss in and to million ago of to track catastrophes Our $XXX the

Assaf Wand

we At the Stewart. world deeper you, faces home our [indiscernible] at even time Hippo understand that multiple an challenges, Thank meaning. the

Our vision more never and by we we're the important energized progress journey of homeownership of protecting has are the making. been

more and have that, behind. all but by your what a are team the of XXXX are proud accomplished we I we strategic promise and our priorities. the We am assembled momentum take happy of world-class across to With in even of XXXX, we questions. building excited


is with Morgan from Instructions] line question first Stanley. the Michael [Operator The of Phillips

may You proceed.

Michael Phillips

Thanks, afternoon. everybody, and good good evening or

couple them. off numbers a First and of with question quick we'll into a then go

is I includes the and The if of that But, first you loss large attritional attritional XX in for assume XX, your attritional. that gross out the that XX%, cat we loss us on is down ratio, XX, through right, net break question in number the a be maybe the the the so correct? it

Stewart Ellis

and Mike, and those - event the The other large losses this Stewart. is The cat in PCS the attritional, are exclusive. shareholder the numbers mutually

Michael Phillips

correct? but the that do XX, XX, XX. where - Is guess, They the XX, question is I is so,

Stewart Ellis

heard Can it repeat you question? I'm the I not right. sure

Michael Phillips

Yes, sure.

a but XX. and your somewhere the XX, I XX, the XX probably in assume buried but the those So XX that's numbers, XX, or is XX, XX negative

Stewart Ellis

categories. Yeah, across it's all

Michael Phillips


builder numbers on if compare in talk, positive all could guess, of how the channel, terms Correct and you versus think your the I'm All growth different overall profitability, channels? wrong. question company the financial Okay. about of wanted we in channel. profitability right. Thanks. terms talk of you of Lots market your me That's services potential, TAM? of in the was. Can if I partnership terms I builder see to

and bigger like the profitability. size possibly the I TAM more financial whereas services think potential of PennyMac bigger growth the a growth but maybe not a is smaller a but builder examples of maybe one market,

kind all in through partnership just your of I So, that want channels. mesh to

Assaf Wand

question. for This is the Michael. Assaf, Thanks

and our partnership view the explain channel. kind of me start on Let

partnership the they mortgage, to life. from never view coming this many home is if get home. do to buy insurance. a home, people is in buy actually you they So, home they for channel And their buy insurance pull you need you What a if need that

that is have people we in purchase support to omnichannel So basically our of people they an strategy kind and And a want basically goes. that's view policy. flow how want mind the to whenever

people home. the about the So, purchasing is track cycle of in partnership supporting a

with with one the company realtors, buildup originators, title sales, mortgage work service these of work we mortgage So things. and we

you in the ways, of one some fact and customized a each the be might different more builder, for is for the some that get bigger view instance. than for is as scale we financial every specifically them solution stated, we different but in they slightly them, of that reach you As and and have

for a instance. have challenges, builders data So usually challenges, deficiency people than other which is their own different

you they components for lot buying you that limited about even in don't missing some a front community, then address; there're that So what don't - create other tenants, insurance very companies a I and to attach that certain if have try issues is in you the and a these when an know information policy. mean the of of the lot potential exactly is have standard you're property a information there's

On the construction. stuff, warranty hidden so the other Builders place. new this losses give a of home, list is large potential a brand some back there are is in under that

first new the happen is going that's to covered brand the actually a anything going So It's by to builder. community. in years be

that brand that risk full no and the overarching homes. sewage lower there is builders one tree the of home the might piping works, rebuilding tree And or is a of community. is works, the overarching it's have it, knowledge fall. So of of for entire your instance, each cost a Everything and new, XX-foot entire every their

It growing seeing a one I is and we're of is offer the fastest the unique There customer. something associates There would is beneficial on more which the integration say, the for can builder. sales ground, done old is channels. builders, products so it's team the builders, our points have builder specific we coverage. an instance has, the better for has product, broader peril. for has what risk that these It's price correct been the it's rates into So has attach It of that we've that dedicated an the a a that, data with higher consideration. so for it's the integration all Hippo, customers specific product for comprehensive lot efficient the so takes actually built data. and And has what in the and for more sales it with HOX specific

products attach around - when as with working we XX%. offering Lennar, an was rate around example, these the started of Just

have rate XX% in business opt-in confident of regions an some which Lennar Now around close we're an very getting what and grow. we we're seeing of the that going it's rate, actually with the is is some of other our and and to XX% attach to

short, unique strategy in relatively this entire unique. So is

You it. need very underneath to technology support and data have to strong very,

API to that's break you in of some and need By You the to them components, to place. them compliance, systems have. some those need of have those different the you regulatory don't way, attached compliance

come a lot unique have of play. into So, solutions

fastest growing us. of one for and our a One profitable channel

on going to going we're partnerships more in and more So, we're future down and continue the announcing of double to the it.

Rick McCathron

I wanted want answered first sure to resonates I detail. a Stewart, question but little to something you make more on it clarify to Stewart correctly, which your with in

development positive points the So that about, were was attritional. on reserve you the XX the release, not talking just

think attritional loss I result. a the as you what would ratio inferred be

said, perils. Stewart across that's As all

Let different it you than reporting a events. a and Uri other example. Winter specific me a was had give storm event unique pattern

So development across just we as went peril. seeing were year positive all and the perils on, not attritional

Michael Phillips

great saying question if do say guys more and What going that really comes are do last do? Okay, that to helpful. partnership get that you it's thank you you on That's I one last to if so appreciate one guess a the else on and Rich. to you, lot faster, that bit? Assaf, I the you a answer - guess you of what touched things [indiscernible] up on touched before. what to follow successfully it. from cool, is quite I it and a would and we to want they can it it but bit can

Rick McCathron

of couple a things. Yeah,

one general, First is probably ever of the severe channel what most that is that we've we're companies in conflict one is, insurance seen. seeing now

going corner in is - you're direct they deal is usually you in to which who to on offer, is [indiscernible] [indiscernible] the to and something live something if attach to takes southern stick of attaching do happen and holistic which specific traffic care agent that what conflicting. the one is the are Mainstreet the don't entire that So we is

something doing which are holistic. we So, is

specific so a You going to to agent the are It's just it, to agent. directing do has always get specific Hippo we with not experience. not that

we're to and are care directing Hippo We of that. taking

what Homepoint different actually companies The a has has point have unique different sources, thing trigger different different said into unique have PennyMac different and than companies to has. a pivot. has InCompass not different has second customers. very what thing different Blend company. What regulation is customers, Different different touch I different compliance it's as Chase infrastructure, what and a and systems, products, data

an to that we need what You remember that's and do company. insurance essence, Hippo its at is it

we there and scientists, match now Where underneath level need technology not it. insurance, a not of system sitting There in a need cater it's It using have once in data own lot certain copy it's there this these and of API. using It's are lot level to engineers, a the of heart system. our Alto, of Palo good and we and and full been paste. we So we at. a thing. different our the a a Silicon management own It's is of has feel of are but systems is it's a and piece very all done trivial certain third-party integrations to needs to take were in system, something we is never we never policy that and Valley pride of

a attach to just it's it. So, trivial not thing to

Stewart Ellis

attach builders to this is than know started. one I'll from Lennar in performance Mike, them our they been with were for rates higher thing. able terms of generate are like we've that experience meaningfully we add the before that We Stewart.

to and not the through partners, our not have the is performance. technology result ability just an that agencies that other about, work things. with iterative do Assaf attempting that better way other that in it the thing So, that and other we It's in to are companies just talked


The next with Yaron Jefferies. from is Kinar line of question the

proceed. may You

Yaron Kinar

good afternoon Thank you everybody. and

significant these? have over the channels prioritization maybe the if growth us question help First growth channel. back do TGP - seeing maybe you we you of from that where Could see coming growth I Assaf coming you you through highest from think think of goes think or from partnership of the where to growth the each of next most more were and the you mentioned year

Assaf Wand


sure some the Stewart component. take I'm will in me kick half that first then Let that and

different in an omni-channel periods at seeing open. And of - while approach we're channels. going to see growth have we're different time, different We

might there to would increasing consumers, a the more, partners direct say we when them. lower double financial down an these work is on other. change in some then to some and actually going we to we're more seeing that going we're when So are then double cost closely down the on of appetite, on things with by And I to

So, less it in might evolving the now sale weekly is call hands we're and growth growth basis. slightly side, over we're partnership I a it change What time. we that and the state sale. is producer on to a on seeing almost or on the of would on but the say daily sale, probably it get end keep going what

up third significantly. what the to us, the largest the and we're the we're so And channel forget base and So be it's sale seeing very day what's if going picking partnership second was are is smallest consumer the it we is these of direct is point fast. of is producers doesn't going of at given the from and mean our partnership. really to our our business is it that of come Don't But, consumer, very right is from to business business seeing is going was started to to always that on going the direct come this things of what from was from that going that sale bullish the end at the the any partnership. largest for and to breakdown. now sale largest But at come all

Yaron Kinar

if And in of price or of about I more then your for versus the agency the those account in that And if not, commissions channel fees, are your partnership think roughly mix products? channel, similar? independent

Rick McCathron

because up the set of It is predominantly we how and difference actually partnerships. structure

a than traditional because the a we So, these ventures have with generally higher through commission joint rate agency independent partnership. do will our partnerships

doing there the value when venture are get more joint not partnerships. add we that is the same it So, and we is

next Lennar an they a a car ask within with absolutely, Lennar As we "great, buys the me can with products answer home, they're help the And question the when insurance." is example, home you Hippo customer our happy can. and is

agency happy else's product with are manufactured on. cross We partner sell we that to in somebody the Lennar

to the non-risk-based revenue earn alongside risk fee So, revenue, it creates product. selling Hippo homeowners' revenue based opportunity the for the

Stewart Ellis

This add Yaron. thing there. Stewart, to is One

do agent have lower On on business new we the we independent fees, do a commission. commission renewal than

So of will decline overall as the fees percentage a of premium the gradually. book of as business matures, percentage

Yaron Kinar

I Okay, period quick question, you base net development if losses prior got well? about it. the Can the maybe can. talk numbers and as a One cat on

Assaf Wand

am of your The question last sorry. I off. part dropped

Yaron Kinar

The catastrophe offer a you development period you provided a on both those base? numbers and for gross Could both were net basis. the on for prior

Stewart Ellis

Yeah, I need think may Yaron. back we to get on to that, you


The from Carletti Matt line with of the next question comes JMP.

You may proceed.

Matt Carletti

good Thanks, afternoon.

peeling expect in Could about for full the or XX around wanted year? basis, I loss XXXX. some question losses large we off the ratio put actually first The similar. QX terms an attritional for guidance XX the should to so you from the talk color it in cat, Pretty of what maybe

color As and be that of as understand sit could quarter-by-quarter we improvement, provide but expecting helpful. 'XX, throughout, we I you. your comments you more would expect there in any not should we Thank end improvement go number about the at

Stewart Ellis

Matt, Stewart. this is

there're on. I are things that think a couple going of

do that of - the reasons the of course of weather out, as rightly you One middle in have pointed year. the we over volatility the the

the still is in downward. lower loss steady to think the going of lower be into is ratio hard bit and while way That the variance the is With So grow sequential the concentrated areas the relative going our the something year. that's second that through shown XXXX, in over decline. year-over-year. just to some in March respect the And we what course losses, it's ratios, source year. a that become to our attritional book geographic into book said significant to have will that make diversity That a imagine the and XXXX smooth as to portfolio improvement We'll do in volatility a will on variability it improvement loss volatility volatility have expect the be add certain that. of when quarters, a third to ultimate of have will mix visibility weather-related more cat also little as and we about we related and we that

are We and Texas, losses then within - very is away state, where big regional we part from northern states Texas higher had call, a in the the the even shifted parts earlier as states states. we part historically of across concentration. state the we've of hail mentioned of our other to have the like

geographic and going events that related diversity of built to of the over weather year cat changes. we've the to As states change of the the course in specific as mix contribution premium, portfolio, our the the that's

Rick McCathron

just couple additions that. of Matt, a to

First increased of know, and attritional the the number loss rate all, filings and throughout effect that year you help will ratio. as of speed we've take filings dramatically rate

as the improvement those inconsistent approved various filings improvement rate the will for those that nonetheless, inconsistent depending out. start on some premiums by when filings go rate as get show live increased earn to regulators, So - and but filings those

over concentrations is on some our mentioned, Stewart few we last geographical loss years. currently have shown as meaningful understanding the that on based Secondly, ratio that improvement

ratio very if attritional losses that yet is diversified change time we the little balance as As provide losses shrink attritional that will are fully shift states in will on. we loss of of higher a take weather, have and course, and will those number because the goes with we higher you have that not in a continue to states increase state that weather-related higher grow geographically, have

Matt Carletti

That's I if could just I guys right. very other high-level you heard a one one question. helpful. And

times. about what message is, expect while balance difficult your That's I think strongly, we're talking ratio. still improving the a at level grow you very obviously same loss at very the time to high just

a about bit those two how those to balance So goals you goals? and can meet talk you expect

Stewart Ellis

thing first we lot important to filings thoughtful the for that that understand all this know inflationary are way the us delivering across taking industry of about think we and country. at point, I of this think rate growth. we we've the a to is process pressures And in focused due that's about that is, entire on profitable are got

not and pricing get too As growth year. and easier we have the standpoint, would going unique from and XXXX advantages that buckets. low in we that rate fall into from is course high parts say over it going of not too the various some get into easier comfortable a those of Hippo country, standpoint properly enough us, to mean calibrated have few a it's the growth I I But for and may adequacy

new large not currently entering are We in. states that we're

and talked that have to we We on we are able positively our access we the new states. national to expect builders that know to and strong we in portfolio roll that already with selected We new volatility bringing out our what weather-related partnerships about products give will institutions home call geographic bring the risk, believe is the us down. existing the that

of ourselves and funnel we a bring can of very we've ratio. the the see optimizing a built, we so we platform - growth because to have as while So, loss top wide very, business

of And from loss so, we in see reduction the growth benefits in as that of weather volatility ratio well.

Rick McCathron

it get make just term ratio is ratio. I to to while XXXX norms, intermediate continuing As our a is loss guidance we want 'XXs the sub-XXX to grow. within to that mentioned, which industry clear our the goal is point loss for

targets as demonstrating healthy entity goal while and 'XXs So, is an the our within growth. still


The with the Alex Sachs. next Goldman of line Scott from question is

proceed. may You

Alex Scott

is had was two-third could one renewals. impact I feel should any give costs how reinsurance on just reinsurance loss consider? a you sort the for we there's First us just and of if Could the repriced ratios to noticeable that the impact

Stewart Ellis

part to Yeah and of Alex, Rich feel add I'll take the first free that anything.

similar is reinsurance treaties we we the not contracts it do renewal. Our And reinsurers, specifics was the ceding individual what of with it successful annual the like feel we're while XXXX. have was on a to in disclosing commission very

some remarks features participation mentioned from have us XOL buy in do protect we we protection to large prepared the loss As and that we losses.

protection executing that So, feel we have the confidence that with we that partners balance to sheet. like them. despite we and it do feel we is the that our confident the the strong we have the reinsurance plans market, of on hardening reinsurance discussed fact we've are And

Rick McCathron

built that Yeah, pace, our function with panel emphasize rapid closely that reinsurers, every is their oversubscribed. saying in to as them of this we accelerators our just recognize, incorporate of are not mind reinsurers ability trust Without one do, at to scenario. our XXXX reinsurance is a Keep partners view our additional our Stewart guards they we one treaty examined have underwriting with of we our and and inflation be of what technology, we use and that was trust was long-term a that level are and we joining partners. will what oversubscription and doing successful created an practices, in

Alex Scott

you. Thank helpful. surely That's

can terms size around repricing on looked just retention Next affecting indications not any you some to hike of California, have think was it say mean indication this retention. being and It more in things the strong of quarter. comment had expect broadly? repricing a question rate this I are nervousness that's really in there early but fair in are going affect is how we on of I action? retention investors how to taken take that to Is XXXX just good the

Stewart Ellis

states we will new the customers that reality rate. remarks, increases. than think existing think the of using was affects targeting not is, I we're see Lots risk, are everybody segmentation; strategy Hippo and not are, cycle one. customers, customers. pricing of launched the because accurate. companies, where better we I multi-carrier before Texas, get it We're lot have We rate decreases. The had more more we that's granulated premium not our what that's We industry different do going to in folks underwriting risks inflationary only situation a relevant taking that it's One rate the is pricing and matching like in the California. model in situations taking we do of we've of our are robust to is than our only a thing we some where use a see which rate mentioned happening prepared have is

pleased retention very that the and optimistic numbers it will very with we're continue. So,

Alex Scott

one I if last Maybe could sneak in. Thanks. one

to sort about in to think have the should XXXX? could of retention excess risk Just or that material with in similar risk it you Anything reinsurance. there you on retention share amount that changes circling of the that Were there higher any take? see fairly was volatility back we to of terms associated the we per XX%

Rick McCathron

we're share certain we but bit little a taking than above less performance certain mechanisms actually in ratios initiated loss quarter perspective, we XXXX, proportional or a did have on thresholds. From instituted

we only a the just it while reinsurance to it's to larger yet are ourselves basis. economic are allows and structure, are our from that we but year-over-year do a not belief us but partners. direction, have loss very models maintaining to continue protect aligning different. our don't strong So, think losses is meaningful against partners right capital-light we sophisticated reinsurance better We ratio demonstrating a a a sophistication that so do partners that perspective we'll is we treaty with reinsurance going have I our in that, loss together and on the change,


next The the question Jefferies. follow-up of from Yaron a Kinar is question line with

You proceed. may

Yaron Kinar

to Thanks. stable I in coming fee-based earnings go income. and commissions comment increase and wanted the to expected recurring around of the back share from

go through to over of the go of How up? portion reduce third-party to Does you expecting of ceding fees you launching getting may simply of time you should insurers earlier underwriting with maybe those that the reinsurance or you're looking does additional to that mean commissions, be maybe gave So some not that with the use the that? mean partnering other example and expect about because think up? we that necessarily and not - earnings it

Stewart Ellis

Yaron, I'll take that.

the it I confidence agencies don't the before, the the - would that reinsurance that We our it's have going NGA. of think be not commentary think to I - portion think as said we business - as I it's a I we're have an that think take where and do we on increased way of amount reflects using. in I we

Spinnaker. business the form and carrier the We of have as-a-service in insurance

allows We own have whether policies. us carriers policies or auto insurance policies, other home to agency, insurance they our which be sell

are buying previous experience delivering from Hippo I development question a a policy us better We the on basis. a to answer for another favorable getting at have net or reserve do the carrier. solid operationally about whether someone's your through

on basis, basis on as For net was QX, and points favorable. a percentage it reminder, points favorable a gross XX a XX

Yaron Kinar

on a do have cat those side, the net basis? you on And

Stewart Ellis

perils, we've broken down. reserves I the of so it's releases don't broad sheet. that reserve that we think a release comfortable reporting we're properly were The balance we've reserves the gotten across on said as all

Yaron Kinar

through or meaningful year-over-year bit you quarter-over-quarter a Then, explain both in increase Okay. more walk the this the quarter could us maybe expenses, and on insurance-related base?

Stewart Ellis

a of answer, go through make I when it's technical a I it - sense Yeah, I think but think will it. bit that's

the QX, P&L You'll our before in towards acquisition, closed commissions partners to commission at of of acquisition, policy. following a that the XXXX. recall the other were the paid when Spinnaker we items to point P&L And accounting, like the we the the end we the recognized all with recognized And and that in time. in acquisition producers over the life is XXX switched of

of look commissions. in only commission QX quarter of you full And This amortization commission XXXX a at XXXX. functionally whereas QX year one P&L the versus policies for reflected in way QX the QX income of group XXXX also have we so, same if up the that XXXX the in in shows

pieces basically be more will accounting detail in issue. to offline, I a comparability but So, the technical happy talk of it's about the

Yaron Kinar

Got it.

insurance this Just rate? quarter's run at expenses, going related a probably look we forward, reasonable insurance - expenses

Stewart Ellis

I think that's right.

I because will there to becomes a it quarters But non-variable it comparable year apples about the be think more was. of the it's each quarters it's a the prior stable to few yes, full relationship where drivers, as need not will than think perfectly we apples. more have between now before fully and

Yaron Kinar

did one full-year rate me. in XQ you One last take in maybe XXXX? much XXXX and How it. Got also from

Rick McCathron

we There actions taken, begun the at taking plenty there rate and we taken, disclosed broken again rate or are we have we information of - disclosed be that rate so, actions the because public last filed have think not be the individual of websites but it. not have that bolt-on down although of the have rate is with don't to also department But, of our actions over end still we've course each all but those are we regulator. I actions or insurance can year

Stewart Ellis

are we increases. filing all are of price getting price where A it's calibration the a earlier, of lot rate homes kinds said others of is And categories getting and not as increase. Rich and certain decreases are risks that


the questions this are at over the for so will There to team conference remarks. pass I management additional waiting no additional time, any

Assaf Wand

you. Thank

I and And and Just the Appreciate insurance want the XXXX we Hippo. time. easy it. your stronger remarks, an with a Thank very team, XXXX in a time time. all easy the things with you all for not is not technology, of concluded everybody the your an to for thanks as with close time company, seeing, for entering going It's growth think the the and to we're be we mindset. It's an other say world. but be optimistic year to we're with are confident that


That concludes for XXXX participation. today's Hippo call. you your fourth Thank earnings quarter

may disconnect lines. You now your