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Hippo (HIPO)

Participants
Cliff Gallant Vice President of Investor Relations
Assaf Wand Chief Executive Officer
Richard McCathron President
Stewart Ellis Chief Financial Officer
Matthew Carletti JMP Securities
Yaron Kinar Jefferies
Michael Phillips Morgan Stanley
Alex Scott Goldman Sachs
Call transcript
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Operator

Hello and welcome to today’s Hippo’s First Quarter 2022 Earnings Call. My name is Bailey and I will be your moderator for today’s call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions] I would now like to pass the conference over to Cliff Gallant, Investor Relations. Cliff, please go ahead.

Cliff Gallant

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

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

that management’s we I would other our expectations predictions, contain will Statements, the begin, this like and that date on Before presentation. expectations, about information is as of business our discussion current to remind based Forward-Looking of you

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

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

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

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

will also premium call, to During generated and such we the total financial EBITDA. conference refer non-GAAP measures adjusted as

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

Assaf Wand

Thank you, Cliff.

on the loss gross focus start over XXXX. targets. of loss of pleased And for are and year, to has culture while the ratio. the is our and quarter, Hippo best as successful the full-year efforts Continuous ratio that public a with robust the company hallmark first reporting had improvement our past report track for We remains been a Hippo a on we are our growth

our to better. the outlook of is services licensed continues grew remains satisfaction in a to months. states year produce also expecting volume. fixed strong, premium and We products expansion reputation other at over late coming We we recently Total XX%. efforts generated momentum need and believe gaining and the York in quality word-of-mouth to The are we customer quarter, New get our states right. believe XX% launched our are as retention own in April, begin prior We premium

full-year to range. in PGP XXX expect We the million continue to million XXX

profitable When new homebuilder, and our to of buying their the tailored our Hippo our Our partners. growing homebuilder channel. like partner XXXX, customer business materially a did is attachment with We insurance most with driving for our better we outcome volume have [indiscernible] ability rate, increase and proven in did fastest needs this we we as customers, builder market will that into believe the process home better recognized insurance and a an for buyers. network for home integrating expand. policy deeply offering the and builders experience We further both by that delivers

are progress, the winter is became quarter traditionally we of winter a points the event very our significant despite gross previous guidance with storms in a best stemming loss pleased particularly of we inclusion U.S. XXXX compared We across last Irwin. of to remain improvement where milder We we since results. from weather over the full-year ratio achieved XX a confident storm ratio while a our Our loss company, public encountered loss is of year catastrophe XX% a QX

and scale states of this of balance geographic New add business, will events the other balance. of lessen. significantly we to greater York individual The and As impact our additions to should book add

to to of and while to underwriting track refine ability risk continue the and our We pricing and suited identify homeowners match price particularly models well appropriately type our our improve to products. to

are customers home willing best and homeowners embrace proactive manage. Our to and easier who to technology protection make home use to the are safer

Looking the more balance geographic impact ahead, and loss taken, we we including favorable ratio. have and pricing expect that already on have better the actions would advanced segmentation

other are improvement. In identify addition, areas for we upon and to beginning execute further

new is expenses reducing leveraging leadership loss experience our while technology claims to improve efficiency. improving example, For and customer operational

expanded Austin, the despite an staff our We are office hiring a be returning the office, include to largest XXX. have count to in to environment challenging rose we location opened Oakland excited to in state of

continue We with progress more but excited to the to-date, progress come. by even will to reporting

our our President. We to back would in learn an meet shareholders. planning Investor on I pass on September to we you York come Rick would to to are New plans glowing leadership deliver And to customers about have like to Day Xth love now values team in and City. more and person it our

Richard McCathron

started expect meaningfully strengths two-thirds show add growth we operations. outside new April, our These results to of continues the be and Growth our XXXX as our show quarters. we balanced and across York, of in state our homeowners business of off across business our XX take adding channels. states, to well are and volume. will New the meaningful grew and insurance Thanks we Assaf. states states we Texas upcoming states But XXXX We launched geographies begin time for In additional today. launched California. with the of distribution late to underlying

Our add we year. particularly additional expect and builder this been to partners strong, builder channel has

to channels. alliances lender expect soon our new mortgage announce also in We

partners said, by improving better the for a Assaf the real our experience value we rates delivering customer. create and tax As for insurance

and Our the stronger a with relationship better partners economics see homeowner.

be customers their to homes These additional such but excited to new offer opportunity and launched will reinsured, protections lines also offer and earthquake programs exposures. We when products now our surplus carry excess are important like buy quarter. We Spinnaker and will products flood. the

We continue developing Hippo fit on services of to to customers. our the products and focus needs

to much but more Our still loss ratio go. has improved, have we

impact from pleased by XXXX underwriting the in we late QX our are introduced the XXXX, We of which iteration engine our call. discussed latest during positive

our who rate decreases across new enabled For flexible price XX changes XX our in technology to in business, and changes and wide one. accurately we homes. ability mix are highly technology states willing providing of our use to These are to and quarter implement protect a we of increases target quarter, have improved as to platform our homeowners, market us live the went our identify segmented,

effect quarter, has been took premium encouraging the the remaining and For renewals, retention these during California rate response with changes rates high. in

for other renewal. states, the effect of For policies XXXX come course take over the changes states these the will as up

simple changes applied carriers tech expertise positively reflecting labor. are current protection our inflation all advantage at inflationary the the has underwriting who we to models materials ratio trends that customers We following unique and is and will renewal. as while expect Hippo and to extremely progresses. impact loss the since ensures use our These Hippo’s protected automatically year cost strategies experience relative have our stack. building these and each successful, our deliberate in been accumulated Hippo providing last One This to properly rerun from market we accelerators data current and renewal, incorporating

results. quarter by encouraged first are We the

much goals. larger and but we execute out, have is Our ability to strategy proving

are consistently leader homeowners is like I pass the company. our our in to to Stewart, service. it a We profitable now nationwide customer create protection would investing to That business over clear CFO.

Stewart Ellis

of our improvement strong our Thanks We in of book substantial delivered while XXXX. last year, grow a a Rick. quarter gross continuing Hippo business. first ratio versus had loss to

Let me some from last take in the of through in premium financial first million quarter the million up XX% year. was highlights. Total you generated XXX of QX XXX

plan goals against in our execute with for to mine. growth ratio continue thoughtful We loss

the to year QX accelerating as to states expect we include in a Revenues to and For seeding roll from in an Spinnaker, are were Revenues business. quarter. up customers. by step carriers program us year agency premiums streams of and out us expanding paid fee partnerships MGA progresses, expansion Also the third-party new reinsurers, geographic implying administrator through XX as TGP, million, commissions XXX steady XX% by other growth and we we up and income million full-year, prior reflecting over growing the growing service and marketing. our rate continue XXX to million commission earned, paid our net

revenue XXXX expect to XXX million million. the continue range XXX to in We of

gross Our loss was substantial marking another quarter ratio XX.X%, in improvement. QX

on Given to track within which But below the full-year to XXX%. would are guidance our XXXX versus improvement improvement loss a seasonality achieve isn’t sequential of believe ratio whether exposure of major gross we we the our XXX%, be fully continued control.

also period results and prior quarter. largely favorable development driven quarter from to number include of and the weather XX% the periods from proposition. in compelling that across two-thirds prior from slightly of We increased the catastrophic the PCS points benefit prior catastrophic During one-third attritional value The events. activity added loss loss we marketing million XX with U.S. quarter’s believe ratio, losses by winter approximately a reserved Sales from XX.X a of year unique XX.X percentage to million have expenses and loss

year XX.X particularly boosting consumer the message and our Our invest and suite in apps, and products marketing compensation the and stock team home it to X.X development includes by an are portals. of expenses coming risks. as grow million X.X view to is those in increased to engineers, the million. customers a Hippo of Technology awareness proactive the in months acquisition of homeowners of aligned driven in web SwingDev Poland, from spend Further persuasive attracted primarily protection managers, to home our we who we is designers development who now mobile quarter, prior programs our plan approach further facing to product our of In the brand. increase builders million based our with

set based X.X The us quarter, cost tap of X.X XX.X being reflecting in in We talent from the allowing million growth, public world. of to locations. and have administrative office and and million increase prior an culturally stock compensation increased pools new including expenses of our are the a glad diverse company a innovation teams, General into million. around and year to geographically to

cash the the in to by end a increase amplified quarter-over-quarter recoverable quarter XX.X from investments and reduction due million million. of XXX at was cash Our were in reinsurers. temporary The

in short-term to order shift growth an to shifted we loss share QX the versus million XX.X attributable Adjusted a Hippo compared loss XXX.X well $X.XX cash in to on the EBITDA you We see cash million in benefit XX.X year was capture of which positioned period prior from treasury bills of of loss for million remain in During quarter loss million is yields, to to extended a of year sheet of investments. quarter. the Net from balance million the why U.S. quarter. net the the XXX a per or investment. was prior XX.X and

for Our last guidance for we continue XXXX To in the expect of to for ratio track remains XXX years. in full-year and now million XXX% range of in to I range quarter’s when further results. million, to his it gross from you. million, TGP remarks. XXX XXX million on the XXXX, to materials reported revenue unchanged below And we for the will improvement XXX Assaf turn back and loss Thank closing over future summarize,

Assaf Wand

become simple you, Thank Hippo our homeownership the on it feels have customers. are a of focus improve feel a able normal. of we to to grateful In that volatility We Stewart. experience at world challenge to

we grow. made delivering everybody. our Thank significant that road we quarter, questions? progress We you ratio This continue to Operator, our remain on and confident take please on we loss and mission. could are in the

Operator

[Operator comes Matt please Instructions] Matt Securities. JMP ahead. you. from Carletti today question Thank go Our first from

Your line is now open.

Matthew Carletti

thanks. Okay, morning. Good

bit with get on and perspective reinsured. have you shareholder - that little I a wanted that. hoping as look in building could other to commentary kind of way just the flood that products. paper, was of I about obviously at the the you question at earthquake partnered kind First of Spinnaker ask versus the some build letter heavily your on

why you somebody elected build product Just with and versus Hippo kind partner else? thought that a process to of

Richard McCathron

is This Rick. Yes Matt, how doing. you are

one. So where need choose sure much to to instead that, And our don’t type customers of that of to joy Remember, coverage. areas you of to build. things homeownership. partner as protect have the Yet couple vision a are consider need we of to some are is you coverages we specific expertise, so that proper providing there do make for

a was in keep it. Now Spinnaker, that other programs we when had also, mind Spinnaker acquired fronting in carrier

gross think other that add programs the loss we but if other to continue ratio. taking are to fronting minimal products have a as We that provide MGAs that platform to any, carrier, total additive for exposure,

So we for also utilize product, some a a us. sell customer, and manager those of the win-win sort channels to our for distribution for creating products, of

Matthew Carletti

a quarter, very premiums and you and questions with And then some us on? helpful. sequentially cadence just bit Really great. it Alright, restored. net there year-over-year. the growth Can of earned a flat what little number and in the going kind is help good get of were

Stewart Ellis

Matt happy take Hi to is this Stewart. that. I’m

reinsurance court then I we earned allowances In I this reduce amortization that of accounting that reinsurers themselves purchase for to would are of well, quota rather net accounting reinsurance to our a having share the bit those the us for think treaty, of tied actually that to of first, the capital the actual are policies Cat share, a say treaty. our it means allowance is reinsurers in some that baked of get which than and an are a our reinsurance some And from be pieces to our allowances during treaty a going premium. purchases the giving to and XXXX the the how written quota of as part it from would treaty. gross moved

purchases of a that. we which is of are that a XOL over can dynamic, means years. calendar it the year are it And Whereas the kind couple of a out spread over in buying more amortized so treaty cat

think into is that of more But is bit last that it more of this that a That because P&L. general, economics And than which a so year, parts there sort our premium, net timing indicate. effect. earned than down other filters I would also reducing in of substantive have difference did didn’t just our effect of

an is based on you tend to our our lower raise earned EBITDA, if net to So on or as a will well. earnings, are the ratio going looking you it looking and which that at loss basis, impact at net bit are be ratio, premium, loss to net accounting tend will

Matthew Carletti

answers. Okay great. Very helpful. Thank you for the

Operator

Yaron The Please Kinar today question from go comes next you. Thank from ahead. Jefferies.

line now open. Your is

Yaron Kinar

Thank and morning. good you

us loss have ratio you thinking an help year-over-year the loss ratio momentum XXXX. the expected can So think it Do just ratio. had improvement see overall nice or on about are you that more of growth there loss is growth the on for below Maybe XXX%? you underlying you

Richard McCathron

Yes. it Yaron is Hey Rick.

your when want to the changes determine you to filings, you have the and geographical diversification, rate change. in at do, We you are time change seeing have loss approval. then regulatory in improvements and file those are the And meaningful takes making what underlying then then you renewal pretty starts material ratio policies. book model rate And it Keep for results. to to in wait mind underwriting of one existing for changes existing the

and So that XX-months entire XX-months. between ranges process

filings the live So different in rate going live. But XX go just the particular quarter, XX products. we had first we rate actually filings are to beginning see of for those improvement

to I subjected would nine quarter a So improvements you took six typically to, the as our should you to second continued continue that meaningful efforts you of know, are improvement. particular due you ago. quarter this months say seeing we is see high But that pretty should that see footprint a for weather to improvement volatility quarter. quarter weather, are And

the book strong themselves that actions of of have and turn our taken down haven’t sight loss have We into ratio conviction continues the we line by worked that to business. clear

Yaron Kinar

underlying ratio loss be you clear to loss on Right? here, as expect the improvement continued the well ratio. total Just as

Richard McCathron

correct. Yes,

Yaron Kinar

loss have gave basis the net Okay. the ratio. development here? numbers Perfect those Do of and impact and on you spelled then you - you catastrophes prior out gross on

Stewart Ellis

basis in in and On XXXX have release didn’t release reserve reserve Yaron Yes. was is the our net million that I think we X.X net Stewart. XXXX. a it

Yaron Kinar

(Ph), And Okay. net for code on the a on a Cat [Cat] basis?

Stewart Ellis

so. It it on X.X roughly. X.X is was a And XXX,XXX, PTF million, basis, ex-PTF is

Yaron Kinar

it. treaties, a Got In higher in the very Are a in there sounds despite came net addressed premiums previous question, other do impact loss which had to would like it in the year-over-year. improvement I to Stuart, ratio, led with And drivers bit then, year-over-year significant the has actually of have on you net there the and a growth? in shift earned. deterioration lot think just that any

Stewart Ellis

great Yes. It question a Yaron. is

of risks into ratios the being just regardless is us remind gross assumed, the assuming everybody of to it measure of Before that think sense details risk. I who the dive for performance, it is that we do I the measure here, think actuarial it underwriting, performance, makes loss operational our performance the is the our actual is of

were our our same. As would risks, the loss ratio so we the retention, and all risk reduce be net we if gross our maintaining

we we certain the amount, are MGA, business increasingly below of who the risks where of gets and of the the we starts performing reduce number that then the the going become the irrelevant bulk a are look to the write. reduction, number risks to As a pieces we of are the overall in we our behalf of To we Because the the is smaller it bearing smaller we business. point is on and services risk economics. and policies representing retain, overall of the the are piece program people only economics half risk that a get, once retention to

a ratio. portfolio hitting our unallocated on loss are - example, expense, of the is behalf adjustment hitting we which and cost of premium. loss the net small that retaining are for we So though only, percentage incurring all entire Even of loss is only

give the smaller these numbers number. so when a premium big get, can you how I of to you some get and UA, just just of And an example

the ratio it a is think economics I piece with loss from reinsurance. exclude like our Hippo our business and the problem XX loss UA all small commissions represents a essentially business get of of And net the that Just on we that for percentage the of points is net ratio. the

movements itself And so of them like points the was year portfolio. things net net sense? sorts big XX can around had change ratio in character ratio, character underlying was so - XXX impact in in a loss the percentage of that purchase Does make that by in overall Those prior and percentage the of the well on quarter. it of the performance loss move points or quarter, this number independent

Yaron Kinar

and very Yes color. much so Yes. appreciate I that

Stewart Ellis

Alright, thanks.

Operator

you. Thank

go Phillips Next ahead. question please today comes Michael Stanley. from Michael from Morgan

Your line now is open.

Michael Phillips

everybody. morning Good thanks. Okay,

quarter hoping couple ability certain Again, talked guess on of have color just couple that on, you have favorable POID that take those I what more think the quarters high. heard decreases pricing you the say you past is attritional may imply do more to can You about more down. back piece add prior you two come that. prior things that I before high refined rate on another just and any rate that alleged and not only and When kind POID before of taking [indiscernible] driving a refined have it color of quarter too that. some it in pricing combined areas last of that to cuts? you with of looks your that kind some and bringing was the of kind But stuff like got - is I that to it allows know was you been pricing do

find appreciated. So will just you be in color there more can

Richard McCathron

Really is question. it Rick. Yes, hey Michael, good

match explaining this exposure. were is prices the segmented enough way we rate better think weren’t historically, a to with of that I charging

we gone underwriting and to Incline with company, entire to multiple an reasons why have one Ally re-underwriting segmentation. and we appropriate have partnered the of bring sure bear. we process is This that companies at through So the making

for found best charging greater is can too average would segmentation for pricing. premium we consider So were much charging clients. clients we were and in have granularity what we what enough the our we we and not premium we What consider

were want. getting that disproportionately versus we poor we clients better So the clients

total of go customers, into specifically to that the make generation are sure the the in The work as work we is pretty customers portfolio that We nine-months call is strongly that home really So just some our a up. protection policy, resonate exposure, as its It mindset better significant increases, but future we insurance with quarters. our re others focus insignificant underwriting customers towards down just the increases, we new and are a want. have the organization, each pricing is to and go leadership team is segmentation industry seeing them our it book on that you matches rate is continuing as individual the those done. why over way seeing spent rate needs refining. experiencing whole whole Much last

Michael Phillips

Can That was more what areas a And given second is Okay, an helpful. a do specifically piece side? bit a to coming talk from that and POID question mean where there thank well. little on you. you as It traditional. her that you was the interesting was by about

Stewart Ellis

that Michael, the a had dropped a please? we - bit. Can little Yes. phone repeat you

Michael Phillips

of POID Another by Yes, What can you you more side? attritional your color. mean favorable XX of Is little Sorry. seeing a you still two-thirds that the add on that? there. are quarter points are attritional. Where

Richard McCathron

high got type Those Yes, in we loss and we have question have we California. whether like also when have geographically, ratio. catastrophe also is your because - complex states exposed particularly now. Texas a PCS understand or this to been you is This portfolio heavily where states shifting it,

you we their shift. more losses Arizona you attritional will that balancing as overall business an see effects attritional, write going masks almost ratio are example. areas all actually As because loss in while start down going mix states diversified portfolio have of up you we is the portfolio, as into in those use Then attritional that sometimes your the of

a of as in have is judge those when are we been. you relevant, period correction I that to So things are think, it it difficult are

little you go, numbers there Stuart, anything? want do So a the you add look Michael. to wonky. sometimes Alright,

Michael Phillips

you. thank No Okay.

for Just me. one more

of to assume reaction increases But your taking. the like insulate pressures, pretty your your we portion that businesses for seeing Does because more homeowners. is, you rate are or or Just the everybody on inflation homes. or the we are does your else’s. that on you portion And feeling are big feel finger inflation are from on you going small tool I that competitor worse? of that a question side or the seeing actually thoughts your if property it new homebuilder, make do you therefore that than

Richard McCathron

Michael. ways. two Yes. going to different I’m this tackle question Also a great

let’s inflation just talk about generally. So

they So one volatile. the I dramatically. increases materials rebuilding mean, word a put each what an is incumbents, many competitive inflation guard that over of arbitrarily and increases inflation up we do actually policy renewal. coverage every We AMLs going advantage at underwrite I each every have renewal. on because incumbents at We using that are don’t The data some have that. sources We and the labor have, think, all policy costs,

picking renewal, is we pressure we So it severity, of inflation policy, goes is going up XX%. are underwrite inflationary When increases, the renewals that significant up because it XX%. A up coverage so each

So are stay most. ahead able I to we of think it, better than

And higher in less therefore than homes There obviously very the is have construction as very, are you are just They it fewer is aspect losses Those home. new new of builder construction performs - it. losses, first much have you subject in losses. homes. business construction homes as homes. attritional the that frequency builder The existing So aspect well. of not fewer is, new the that you is attritional attritional since have

it meaningful think not inflation relates to a necessarily amount as to I it and So helps severity.

impact. greater the aspect has a think I first mentioned far I

Michael Phillips

that, quarter. Congrats it sense. makes on the for Thanks Okay.

Richard McCathron

Michael. Thanks

Operator

from please Thank Alex you. ahead. Sachs. today comes go from Scott Alex, The Goldman question next

open. now is line Your

Alex Scott

Hey good morning.

back are was had an you year. actually the allow also you to - you it can it you does weren’t provide do in capacity geographies just that just said, I on think is of what underwrite et as in is coming Does those talk it it MGA, through one before? I First different the but going how cetera? or allow just update is And to underwriting about, and may that more risks online? it the you of - Does we half allow terms

Assaf Wand

talking partnerships Incline assume about I the Ally? good MGA, are we Yes question. with By have Alex you and

Alex Scott

Yes.

Richard McCathron

is There Perfect. partnerships. we two Okay. really that those have benefits with

most it our capital to life utilize The Spinnaker, into is sheet, own helps instead balance one so rate important not sheet business each their The has capital us but and important, the infusing to That have We risk. of ability really first is filings our important allows every most benefit with earlier, price the aspect. is us in segmentation to multiple state our and grow better balance and I aspect further additional multiple that aspect. is what match mentioned programs, structure. which granular

underwriting Now, by parallel, lots company had sophisticated granularity, the never you historically, that fairly would multiple we if is is we granularity, you algorithm have have one underwriting and you it that was level Yes, of of a rating have Spinnaker. but essentially companies. can carriers get get

concerned about of because usually the regulator is Finally, as as current compressed, for dislocation watch the we is live customers, underwriting have customers. current in new companies states, time not companies those the those no go new products to because

structure. And of does on accelerates us So granular we all capitalized take support that which in rate, it it can gives segmentation. the timeline our

Alex Scott

pretty bad you areas get going of by are to nuances the this on where in I concerns, geographically year. Got and season that California, sort of droughts here some going it. in Thank And in be you. just talk Could is exposures wildfire any guess, and I about maybe the to light hit relative you had wildfires? California the your second one, to

Richard McCathron

also a great question. Yes,

to overly We concentrations. exposed are not wildfire

least all zero, zero fire we from for the XX, is way which Fire only So to meter line, we which as have risk exposed. and is line exposed goes fire one. the In the California, do that. most up historically our line used like places

So exposed. not overly

metric. better process switching a to We have wildfire has brushfire of not for changed. in actually switched, are the our But appetite exposure

conservative very that. are We to related

Alex Scott

maybe on there trading, even this about Got stocks, can value Obviously Is you anything there looking your is about at forth. going relative anything lot sneak mean, stock words traded your strategic at at share growth been it. is with with one to I Maybe where can what just do just in? with if to it where mean, that per has trading last book think so one you stock happened I a has even I and point? do something differently? down looking But,

Assaf Wand

which what We goals on. And will the - what what on see it the these on basically are it is well we do. the and what doing. live we this keep way, and keep we stock are we calls, that We do say we company, is is we what actually to is, In future. what and we can what believe reducing are valuable very is managing are we and the we Assaf. this And not and on company, we have we like on end. that we simple going Alex market. the is it Basically phone on are is an life in our going it should more company control think basically said focused grade. short, the all conviction a we to in are very we market, Hi we the And building growth, we ratio, this reiterate than the optimistic improving we keep be don’t of loss ever focused a ongoing we we and do on

testament we are good what is this a for I on. this quarter think is And that. focused So

Alex Scott

Thank you. Okay.

Operator

you. is [Operator today from Kinar question next Thank Jefferies. Instructions] Please go from Yaron follow-up ahead. The a

open. Your line is now

Yaron Kinar

year-over-year. actions given model have have the would a based amount to Have XXXX current the on the you. you from and I’m curious, loss ratio? where you REIT tried of underwriting in come XQ kind portfolio taken thank Hey, of

Richard McCathron

course to We I I’m share. have we not share over if I’m that. we could going would that to is that Stuart, of don’t but something sure have know we but punt

Stewart Ellis

Yes.

I as last year, our that part of increased can and would other a that which - think and versus in events They publicly, I have. that smaller, strategy in think, Winter diversity what strategy is were the cat XXXX. than have from but impact probably is that be is year. obviously, - they diversification of the we quantified And growth don’t we part overall the it book given we obvious say, last today the Storm the had of PCS we Uri

those year-ago. is impact. and a piece of represent book more than smaller And of mathematically, pieces book Texas did have our of would smaller just each they today a those the diverse, So a overall

Richard McCathron

very, been Yaron. to the to loss that actions been would we look hard we say, taking sufficed ratio differently. Hey very the hadn’t take I’m working if have

Yaron Kinar

No doubt.

Okay. if could. And follow-up second, I then

the of So the two about how homebuilder give being of you the company maybe the remain the the what year rest you portion compares after maybe Can with performers best of customers one, with are those sense of customers year? your guess, talked after that us in I highest a book. quality, or the

Stewart Ellis

Hippo, has the high is this levels Yaron with channel. don’t we and have retention particular in the I I that of customer think the homeowner book Stewart. see in then general, think, we are not do out like given satisfaction, by the like you enduring I space building Hi we you value. can - in feel in is This broken numbers. But the and think can

to of similar continuing churn channels. premium every number all is year. to pretty last people about to We good out large to feel year, not a was replace are we still it marketing of Like but our Our the our across expense that having grow. is retention book really

our ability excited business. are that continue And in so about piece invest to the of to we

Richard McCathron

probably a Yes. home about what strategy, have particular we age. retention because to similar question Yaron ages, homes we thinking is on the rating thing, one the have of create to ratio of and And suffice add say happens as age, a methodology those to a as type more that at I similar at both would start home loss that it pricing standard business? the this to - a would people would

that with. that that been they not in have have I strategy underwriting. space we something those others and this a very age, to job done great as support retention a So both And homes is develop think have strong

Yaron Kinar

question. Thanks and much for thanks Thanks very well. preempting as next

Richard McCathron

Thanks Yaron.

Operator

There were at Thank questions waiting you. time. no this additional

So I over Assaf remarks. to Wand would like for to pass conference the closing

Assaf Wand

reiterate was to a we all strong want Thank making progress that you. very fronts. just continue and Hippo quarter this I for on

the to call. thank Thank for future actually very everybody joining are and We for you. optimistic wanted our

Operator

That XXXX your concludes Thank earnings you call. participation. the for Hippo first quarter

your line. You disconnect may now