Hippo reports 88% YoY growth in revenues in Q2 2024

Home insurance firm Hippo has announced its financial results for the second quarter of 2024 reporting revenue growth of 88% year over year (YoY), with premium retention more in-line with risk-retention.

At $90 million, up from $48 million in Q2 2023, revenue growth in Q2 outpaced Total Generated Premium (TGP) growth, which increased 20% YoY to $380 million.

This was driven by continued strength in the firm’s Services and Insurance-as-a-Service (IaaS) representing 83% of TGP, Hippo explained.

The firm also reported that Services and IaaS drove TGP growth, up 38% and 23% YoY, respectively in Q2. This brings the collective premium from these two segments to 83% of its total TGP, up from 73% a year ago.

The quarter also saw substantial HHIP loss ratio improvement YoY, to 84%. Q2 gross PCS loss ratio improved 96pp YoY, with higher deductibles and reduced exposure to severe weather.

Q2 gross non-PCS loss ratio increased 2pp YoY, but excluding reserve development, it improved 3pp YoY. HHIP Net Loss Ratio improved 475pp YoY to 113%, driven by portfolio-level improvement, combined with the improvements to Hippo’s reinsurance structure.

The company also posted a 58% gross loss ratio, and a 94% net loss ratio in Q2 2024, compared to last year’s 107% and 344% figures.

Net Loss attributable to Hippo in Q2 2024 was $40.5 million an improvement compared to the $107.8 million loss reported in Q2 2023.

Hippo’s Q2 adjusted EBITDA loss of $24.9 million also saw an improvement when compared to the $87.7 million loss seen in the second quarter of last year.

Hippo President and CEO Rick McCathron, commented: “Our plan to reduce the volatility in our homeowners program passed its first meaningful test, as we delivered a substantial year-over-year reduction in catastrophic losses despite another quarter of elevated severe weather.

“We used proprietary technology to drive efficiencies into our operations, which resulted in higher customer lifetime value and lower customer acquisition costs, and we improved access to insurance for customers buying new homes. We are well-positioned for continued growth and on track to achieve our long-stated goal of positive Adjusted EBITDA in Q4.”

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