Hippo Holdings Inc. has recently released its 10-K report, providing a detailed look into its operations and financial performance. The company, headquartered in Palo Alto, California, offers home protection insurance in the United States and the District of Columbia. Its insurance products include homeowners' insurance against risks of fire, wind, and theft, as well as personal and commercial insurance products. Hippo distributes its insurance products and services through its technology platform, offering policies online, over the phone, or through licensed insurance agents.
In the 10-K report, under ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Hippo discussed its actions in the third quarter of 2023 to lower the volatility of its Hippo Homeowners Insurance Program portfolio, including raising rates on a portion of its renewal business, increasing deductibles for wind and hail perils, and selectively non-renewing policies in certain regions. The company also launched an expense reduction initiative, including a staff reduction announced in October 2023.
Hippo detailed its use of reinsurance to support the growth of its new and renewal insurance business, reduce earnings volatility, and optimize capital management. The report highlighted the proportional and non-proportional reinsurance arrangements in place, including the purchase of non-proportional excess of loss catastrophe coverage.
For the fiscal year 2024, Hippo elected not to purchase proportional reinsurance for its primary homeowners’ reinsurance program, indicating growing confidence in the profitability and predictability of its underwriting results. The company also discussed its ability to attract new customers and retain existing ones, emphasizing the importance of maintaining and strengthening its brand and providing superior customer experiences.
Today the company's shares have moved 30.4% to a price of $18.86. Check out the company's full 10-K submission here.
