Hippo Holdings Inc. · NYSE:HIPO
Hippo — Q2 2025 Earnings Presentation
78 slides from Hippo's earnings presentation, Aug 6, 2025
Slide 1: Investor Day 2025
allejexe INVESTOR DAY 2025 Nyse!
Slide 2: Disclaimer
INVESTOR DAY 2025 Disclaimer Non-GAAP Financial Measures This presentation includes the non-GAAP financial measure (including on a forward-looking basis) Adjusted performance, and therefore Hippo’s non-GAAP measures may not be directly comparable to similarly titled EBITDA. Hippo defines Adjusted EB
Slide 3: Today's Agenda
INVESTOR DAY 2025 Today’s TIME SESSION SPEAKER ROLE Agenda Welcome Andrea Collins Rick McCathron Chief Marketing Officer President & CEO Executive Summary ~50 MINUTES Our Journey to Today Stewart Ellis Chief Strategy Officer Our Go-Forward Strategy Rick McCathron President & CEO Fireside Chat 10 MIN
Slide 4: Rick McCathron
Rick McCathron President & Chief Executive Officer
Slide 5: Key Themes for Today
INVESTOR DAY 2025 Key Themes for Today Primed to Deliver Consistent Bottom Line Growth with an Attractive Return on Equity and Lower Volatility Business Company Proven Differentiated Transformation Vision Team Products Over the past three Building a platform to Talented, experienced Competitive adva
Slide 6: Stewart Ellis
Stewart Ellis Chief Strategy Officer
Slide 7: Track Record of Execution
INVESTOR DAY 2025 Track Record of Execution Since our last investor day in 2022, Hippo has exceeded its aggressive financial goals Adjusted EBITDA Cash & Investments Revenue $ Million $ Million $ Million 9 571 465-475 0-4 420-450 56 Inorganic 400 515 119-121 -55 Q3’22 Q4’24 Q4’24 As of Q4’24 As of Q
Slide 8: Path to Positive Adjusted EBITDA
INVESTOR DAY 2025 Path to Positive Adjusted EBITDA Pulling key levers for profitability at scale Adjusted EBITDA Walk Key Drivers $ Million 1 Improved gross loss ratio, 3 9 7 reduced volatility, and better 21 risk selection and pricing 2 Driven by automation, optimized footprint, and 32 leaner opera
Slide 9: Performance Drivers: Hippo Home Insurance
INVESTOR DAY 2025 Performance Drivers: Hippo Home Insurance Added the right new business, re-underwrote existing portfolio and substantially improved rates and policy terms Rates and Terms HHIP New Business Mix HHIP Geographic Footprint Business Mix (% of total) Premiums by State ($ Million) 173 rat
Slide 10: Driving a Trajectory of Profitable Growth at Hippo Home Insurance
INVESTOR DAY 2025 Driving A Trajectory of Profitable Growth at Hippo Home Insurance We are rapidly increasing net earned premiums while reducing our loss ratio and driving profitability HHIP Gross Loss Ratio excluding HHIP Net Earned Premium % of HHIP Underwriting Profit PAY Reserve Release Gross Ea
Slide 11: Building a differentiated franchise in Hybrid Fronting
INVESTOR DAY 2025 We haven’t just been focusing on Hippo Homeowners… We’ve been building a differentiated franchise in Hybrid Fronting. 11
Slide 12: Performance Drivers: Hybrid Fronting
INVESTOR DAY 2025 Performance Drivers: Hybrid Fronting Diversifying the portfolio while delivering underwriting profit Gross Written Premium Mix – 2022 Gross Written Premium Mix – 2024 3rd Party 3rd Party Homeowners Hippo HHIP Homeowners 14% 30% 19% Renters 15% Hippo HHIP Renters 55% 17% Other Casua
Slide 13: Since Investor Day 2022
INVESTOR DAY 2025 Since Investor Day 2022 Financial (r)evolution supported by a nimble business model and technology platform Integrated Hippo Platform Monoline Homeowners Company Added Increased Improved Hippo Diversifying Fronting Scale Homeowners Lines of Fee Income Business $ Transformed from a
Slide 14: Rick McCathron
Rick McCathron President & Chief Executive Officer
Slide 15: Founding Blocks for Success
INVESTOR DAY 2025 Founding Blocks for Success… Renters Commercial Property Casualty Differentiated Hippo Spinnaker Homeowners Insurance Program platform Non-Hippo Homeowners Other Potential Acquisitions Non-owned Owned 15
Slide 16: With Key Enablers to Unlock Potential
INVESTOR DAY 2025 …With Key Enablers to Unlock Potential… Renters World Class Commercial Team Property Casualty Disciplined Differentiated Hippo Approach Spinnaker Homeowners to Portfolio Insurance Program platform and Risk Tech- Non-Hippo Management Forward Homeowners Thinking Other Potential Acqui
Slide 17: Well-Positioned To Achieve Long-Term Vision
INVESTOR DAY 2025 …Well-Positioned To Achieve Long-Term Vision Renters World Class Commercial Team Poised to Property deliver a Casualty Disciplined superior Differentiated Hippo Approach return on Spinnaker Homeowners Insurance Program to Portfolio capital from platform and Risk Tech- a well- Non-H
Slide 18: Proven Team of Industry-Leading Talent
INVESTOR DAY 2025 Proven Team of Industry-Leading Talent Today’s Speakers Rick McCathron Andrea Collins Stewart Ellis President & Chief Chief Marketing Chief Strategy Executive Officer Officer Officer MERCURY INSURANCE, POLICYGENIUS, 32+ SUPERIOR ACCESS, 20+ COWBELL 25+ DLJ, EBAY FIRST CONNECT Torbe
Slide 19: Technology-Forward Approach
INVESTOR DAY 2025 Technology-Forward Approach Leveraging technology to improve the customer experience across Portfolio Operational Differentiation Management Efficiencies at Scale Driving portfolio Delivering seamless, Scaling the hybrid management integrated fronting platform in a underwriting exp
Slide 20: Introducing 2028 Financial Targets
INVESTOR DAY 2025 Introducing 2028 Financial Targets Delivering superior return on capital from a well-balanced and diversified portfolio of risk >$2B >$125M 18%+ Gross Written Adjusted Adjusted Premium Net Income Return on Equity 20
Slide 21: New Strategic Partner: The Baldwin Group
INVESTOR DAY 2025 New Strategic Partner: The Baldwin Group Launching a strategic partnership to accelerate the achievement of our long-term vision Hybrid Fronting HHIP New Builder Homes Distribution Significant expansion of Access to the combined Baldwin to purchase Spinnaker’s decade-long Westwood
Slide 22: Torben Ostergaard
Torben Ostergaard President & CEO, Spinnaker
Slide 23: Spinnaker Platform: A Hybrid Fronting Carrier
INVESTOR DAY 2025 Spinnaker Platform: A Hybrid Fronting Carrier A stable, predictable and profitable insurance company built on trust Access to Underwriting Across Diverse Partnerships & Lines of Business 3 50 18 30 Insurance Carriers States Program Active 1 2 Admitted | 1 E&S Licensed Partners Prog
Slide 24: Driving Growth While Delivering Bottom-Line Profitability
INVESTOR DAY 2025 We Are Driving Growth While Delivering Bottom-Line Profitability Delivered 25% return on capital in FY24, up significantly from 12% in FY22 Gross Written Premiums Net Loss Ratio Segment Adjusted Operating (ex-Hippo) Income + Net Investment Income $ Million $ Million 618 60% 36 514
Slide 25: Fronting Platform of Choice for MGAs
INVESTOR DAY 2025 Fronting Platform of Choice for MGAs Expertise Risk Management Technology Team of seasoned insurance Culture rooted in risk management, Advanced technology platform professionals with proven ability leveraging data and analytics to and integrated systems to deliver to achieve resul
Slide 26: Leading with Deep Industry Expertise
INVESTOR DAY 2025 Leading with Deep Industry Expertise Highly experienced and cohesive team committed to Spinnaker’s future growth Torben Jesse Charles Juliette Austin Ostergaard Willmott Valinotti Song Bell President & CEO CFO & COO Chief Underwriting Officer General Counsel Head of Business Develo
Slide 27: Risk Management Philosophy: Stable, Predictable, Profitable
INVESTOR DAY 2025 Risk Management Philosophy: Stable, Predictable, Profitable Delivered 25% return on capital in FY24, up significantly from 12% in FY22 Leverage data and analytics to understand Delivering stable our exposure and manage risk and predictable underwriting profits, Conservative in natu
Slide 28: Disciplined Approach to Underwriting and Program Management
INVESTOR DAY 2025 Followed Disciplined Approach to Underwriting and Program Management… Sourcing Diligence Launch Monitoring Termination • Strategy, • Assessment • Onboard into • Internal Reporting • Contractual Marketing, • Underwriting Systems & • Reinsurance Protections Branding Committee Process
Slide 29: Integrated Technology and Operations Enables Partner Success
INVESTOR DAY 2025 …Integrated Technology and Operations Enables Partner Success… Manual On-Boarding Process Tech Driven On-Boarding Limited Use of Technology Streamlined Back-Office Technology Advanced Data Infrastructure & Basic Data Management Reporting 29
Slide 30: To Deliver Results and Build Confidence and Trust
INVESTOR DAY 2025 …To Deliver Results and Build Confidence and Trust Proven ability to dial up or down risk based on market cycles and aligned with the long-term vision of our partners With a strong culture of risk management, …Resulting in long-term, trusted relationships we have safely increased r
Slide 31: Our Playbook for Measured Growth and Risk Discipline
INVESTOR DAY 2025 Our Playbook for Measured Growth and Risk Discipline In Action Risk philosophy grounded in data, analytics and expertise Case Study Approach Slow & Steady Increase capacity as performance continues to be stable Growth and profitable Increase capacity as performance continues to imp
Slide 32: Case Study #1: Slow and Steady Growth
INVESTOR DAY 2025 Case Study #1: Slow and Steady Growth Increase capacity as performance continues to be stable and profitable 160 145 140 116% 120 116 96% 100 89 76% 80 73 56% 44% 60 32% 32% 36% 40 20 26% 16% 0 -4% 2021 2022 2023 2024 Gross Written Premium Gross Loss Ratio 32
Slide 33: Case Study #2: Success and Scale
INVESTOR DAY 2025 Case Study #2: Success and Scale Increase capacity as performance continues to improve and provides for above normal returns 128% 90 85 80 116% 70 87% 96% 60 77% 76% 50 65% 41 40 56% 30 36% 20 10 16% 10 1 0 -4% 2021 2022 2023 2024 Gross Written Premium Gross Loss Ratio 33
Slide 34: Case Study #3: Underperform and Terminate
INVESTOR DAY 2025 Case Study #3: Underperform and Terminate Be a good partner, but act swiftly, when program is underperforming and/or lacks appropriate reinsurance support 16 14 250% 14 12 11 11 150% 111% 10 59% 53% 24% 50% 8 6 -50% 4 3 -150% 2 - -250% 2018 2019 2020 2021 Gross Written Premium Gros
Slide 35: Spinnaker Platform: A Hybrid Fronting Carrier
INVESTOR DAY 2025 Spinnaker Platform: A Hybrid Fronting Carrier A stable, predictable and profitable insurance company built on trust Access to Underwriting Across Diverse Partnerships & Lines of Business 3 50 18 30 Insurance Carriers States Program Active 1 2 Admitted | 1 E&S Licensed Partners Prog
Slide 36: Michael Stienstra
Michael Stienstra GM & Chief Insurance Officer, HHIP
Slide 37: Home Insurance Market is Expanding, Driven by Opportunities
INVESTOR DAY 2025 Home Insurance Market is Expanding, Driven by Opportunities Homeowners insurance market is expected to steadily grow and evolve over the next 30 years • New home construction has evolved toward Homeowners Insurance Market ($B)1 more sophisticated builds with greater square $215.9 f
Slide 38: Well-Positioned to Capture This Growth
INVESTOR DAY 2025 With Our Exceptional Offering, Hippo is Well-Positioned to Capture This Growth We want to make it easy for Customer great homeowners to find affordable coverage. Deep industry expertise Location House Strong underwriting capabilities Supported by technology 38
Slide 39: Deep Industry Expertise
INVESTOR DAY 2025 Deep Industry Expertise Our expert leadership team brings extensive insight and experience within the marketplace Michael Peter Ilya James Jake Stienstra Piotrowski Shnol Fults Falandays GM & Chief Insurance Chief Claims Officer Chief Underwriting VP, Insurance Product Chief Actuar
Slide 40: Better risk-based pricing, reduced loss ratio, higher profits
INVESTOR DAY 2025 Since 2022, we have achieved better risk-based pricing while reducing our loss ratio, driving higher profits. 40
Slide 41: Our Portfolio Transformation
INVESTOR DAY 2025 Our Portfolio HHIP Ultimate Loss and ALAE Underwriting Year Performance1 Transformation Uri Diversified, attractive portfolio 32% generating significant marginal profit 130% 125% 121% 3% Uri New management since 2021 102% 98% Average premiums: up 45% 83% LA Loss costs: down >20% 15
Slide 42: Our Portfolio Transformation: Rating Improvements
INVESTOR DAY 2025 Our Portfolio Rating Improvements1 Transformation: 12,000 Rating The best customers receive a premium The most underpriced customers will receive Improvements 10,000 decrease premium increases > 75% 8,000 Repriced entire portfolio # Policies 6,000 Introduced 18 new variables 4,000
Slide 43: Our Portfolio Transformation: Coverage Offerings
INVESTOR DAY 2025 Our Portfolio Q2’24 CAT What-If $ Million Transformation: 50.0 Coverage Offerings Deductible, roof -17.0 payment schedules & others requirements 25.8 change based on factors -7.3 Non-renewals where -9.5 necessary 10.0 -6.3 Highest risk areas have highest cost sharing with customer
Slide 44: Our Portfolio Transformation: New Business
INVESTOR DAY 2025 Our Portfolio Homeowners Exposures Transformation: 100% 2% 5% 11% 16% 24% New Business 80% 60% 98% 95% 89% 40% 84% 76% Focused growth on 20% good homes, in good 0% communities, that have 2020 2021 2022 2023 2024 Other New Homes Portfolio run loss ratios <45% New Homes Portfolio Und
Slide 45: Policy Level: Plan, Monitor, Execute
INVESTOR DAY 2025 Policy Level: Plan, Monitor, Execute By-Peril Loss Models … … Pol Num: HTX-xxxx-01 County: Collin Pol Num: HTX-xxxx-02 Rating Engines Coverage A: 400,000 (Current & Future) Proj Premium: $3,700 W/H Ded: 1% Aging Retention Target Prem: $3,000 Age of Home: 15 Margin: $700 Engine Engi
Slide 46: Policy Level: Plan, Monitor, Execute
INVESTOR DAY 2025 Policy Level: Plan, Monitor, Execute Aging Engine + Rating Engine + Retention Engine + Loss Models • Re-rating every policy through • Predicts day customer is • Realtime shifts in portfolio raters, calculate variable drift expected to leave: enables quality to double down on across
Slide 47: Policy Level: Fix and Improve: Discounts
INVESTOR DAY 2025 Policy Level: Plan, Monitor, Execute Fix and Improve: Discounts Issue: Getting overused for new & renewal Fix: Built e-verification tool à Easy to confirm Improve: Success was greater than planned (more premium at higher retention) à Rolled out to other discounts and other states 4
Slide 48: Our Right to Win
INVESTOR DAY 2025 Our Right to Win Positioning us for future growth, without compromising on our loss ratio Technology Ability Proactive to Scale Underwriting and Screening For every policy, every variable, Enabled by our technology, We are building advanced models we use technology. Our technology
Slide 49: Andrea Collins
Andrea Collins Chief Marketing Officer
Slide 50: Right To Win Through Our Go-To Market
INVESTOR DAY 2025 Right To Win Through Our Go-To Market Matching right Real-time customers with the Quoting right products (both Easy and Hippo and non-Hippo) efficient purchase Proactively identifying Customer Segments that fit bundling opportunities experience our Risk Profile to drive value suppo
Slide 51: Our Unique Value Proposition
INVESTOR DAY 2025 Our Unique Value Proposition Attracting, Supporting and Retaining the Right Customers +13 85 Home Maintenance Tailored Offerings Proactive Communications Personalized Experience 51
Slide 52: Jesse Willmott
Jesse Willmott CFO & COO, Spinnaker
Slide 53: Risk and Portfolio Management Approach
INVESTOR DAY 2025 Risk and Portfolio Management Approach We manage the risk across all of our businesses at the company level as a consolidated portfolio Hippo Home Corporate Commercial Reinsurance Reinsurance Renters & Capital Programmatic Framework Reinsurance Casualty Retention Cyber 53
Slide 54: How We Manage Across the Cycle
INVESTOR DAY 2025 How We Manage Across the Cycle Flexible model allows for proactive modification across cycles Heavier reliance on fee-based income Soft market conditions Ample market capacity Corporate Corporate Reinsurance Reinsurance Programmatic Issues Market Programmatic Cycles Reinsurance Ret
Slide 55: Access to a Diversified Set of Reinsurance Structures
INVESTOR DAY 2025 Access to a Diversified Set of Reinsurance Structures Variety of reinsurance structures provide flexibility and support capital management Corporate Layer 2 Corporate Corporate Layer 1 ~250YR ~300YR ~143YR CAT CAT CAT XOL XOL XOL Quota Share Alternative Inuring Inuring FHCF Cat Bon
Slide 56: Risk Tolerance Methodology Underpinned by Strict Standards
INVESTOR DAY 2025 Risk Tolerance Methodology Underpinned by Strict Standards Risk is evaluated across multiple frameworks Regulatory Rating Agency Internal Risk Standards Perspective Tolerances • Compliance with Risk- • Focus on AM Best • Evaluates Occurrence Based Capital (RBC) Capital Adequacy and
Slide 57: Guy Zeltser
Guy Zeltser Chief Financial Officer
Slide 58: Outperformed Prior Investor Day Guidance
INVESTOR DAY 2025 Outperformed Prior Investor Day Guidance We have the insight and execution capabilities to provide achievable forecasts Adjusted EBITDA Cash & Investments Revenue Growth $ Million $ Million $ Million 9 571 465-475 0-4 Inorganic 420-450 56 400 515 119-121 -55 Q3’22 Q4’24 Q4’24 As of
Slide 59: Aligning Key Financial Measures
INVESTOR DAY 2025 Aligning Key Financial Measures Key financial metrics more accurately reflect the focus of an insurer with a portfolio of risk Top-line Growth and Scale Total Generated Premium Gross Written Premium Underwriting Profitability Gross Loss Ratio Net Loss Ratio Bottom Line Profits Adju
Slide 60: Translating 2025 Guidance
INVESTOR DAY 2025 Translating 2025 Guidance Full-year 20251 Q2-Q4’25 Annualized Gross Written Premium $1.05-$1.1B $1.15-$1.2B Net Loss Ratio 72%-74%2 62%-64% Adjusted Net Income ($10-$14M)3 $28-$32M Adjusted Return on Equity (3-4%) 8-9% 1. No change to guidance assumptions reported at Q1 earnings 2.
Slide 61: Performance Metrics In 2028E
INVESTOR DAY 2025 Performance Metrics In 2028E Gross Written Premium Adjusted Net Income Adjusted Return on Equity $ Million $ Million % of total >2,000 >125 18%+ ~2x ~4x 1,050-1,100 8-9% 28-32 2025 2028E 2Q-4Q’25 2028E 2Q-4Q’25 2028E Annualized Annualized 61
Slide 62: Doubling Top-line Premium by 2028
INVESTOR DAY 2025 Doubling Top-line Premium by 2028 Three-year growth assumptions are in-line with how the business is currently operating Gross Written Premium Key Drivers $ Million 22% >2,000 1 Organic growth at slightly lower pace than achieved 25-28E CAGR historically 2 Adding programs in simila
Slide 63: Similar Premium Retention And Net Loss Ratio Resulting In Doubling Underwriting Profit
INVESTOR DAY 2025 Similar Premium Retention And Net Loss Ratio Resulting In Doubling Underwriting Profit By 2028 Maintaining underwriting performance & retention will nearly double underwriting profit by 2028 Gross Written Premium Retention Net Loss Ratio Underwriting Profit before Overhead 62-64% 6
Slide 64: Increased Operating Leverage with Scale
INVESTOR DAY 2025 Increased Operating Leverage with Scale Scalable, technology-enabled platform, drives top-line growth well ahead of overhead expense investment Gross Written Premium Overhead Expense1 Key Drivers $ Million $ Million • Automation in customer >2,000 support, claims handling >22% +8%
Slide 65: Taking A Conservative Approach In Our Investment Portfolio
INVESTOR DAY 2025 Taking A Conservating Approach In Our Investment Portfolio Investment Portfolio U.S. Gov't and Agency as of 3/31/25 8% States and Territories 3% Key Drivers • Generate income with a conservatively positioned portfolio • Construct the portfolio to maintain liquidity and preserve cap
Slide 66: Resulting in Strong Adjusted Net Income
INVESTOR DAY 2025 Resulting in Strong Adjusted Net Income 2Q-4Q’25 Annualized-2028E Adj. Net Income $ Million Key Objectives >125 • More diversified premium based across lines of business and geographies • More efficient and scalable overhead structure • More profitable and predictable 28-32 2Q-4Q’2
Slide 67: Hippo's Unique Capital Structure
INVESTOR DAY 2025 Hippo’s Unique Capital Structure The organization has been structured to optimize capital efficiency and access Unique capital More predictable Ability to structure with an future returns leverage NOLs MGA, captive driven by a well- over the reinsurer, and balanced portfolio upcomi
Slide 68: Delivering Long-Term Value
INVESTOR DAY 2025 Delivering Long-Term Value Driving value through focused and disciplined execution Strong Track Record Compelling and Delivering Improved of Execution Achievable 2028 Earnings at Lower • Grew revenue 3.5x Targets Volatility • Delivered positive adjusted • >$2B Gross Written Premium
Slide 69: Rick McCathron
Rick McCathron President & Chief Executive Officer
Slide 70: Key Themes for Today
INVESTOR DAY 2025 Key Themes for Today Primed to Deliver Consistent Bottom Line Growth with an Attractive Return on Equity and Lower Volatility Business Company Proven Differentiated Transformation Vision Team Products Over the past three Building a platform to Talented, experienced Competitive adva
Slide 71: Appendix
INVESTOR DAY 2025 Appendix 71
Slide 72: Definition of Non-GAAP measures included in this presentation
INVESTOR DAY 2025 Definition of Non-GAAP measures included in this presentation • Adjusted EBITDA: We define adjusted EBITDA as net income in the management of our operations because we believe it (loss) attributable to Hippo excluding interest expense, income gives our management and financial stat
Slide 73: Definition of Non-GAAP measures included in this presentation
INVESTOR DAY 2025 Definition of Non-GAAP measures included in this presentation • Adjusted Return on Equity: We define Adjusted Return on statement users useful insight into our results of operations Equity as adjusted net income (loss) expressed on an and our underlying business performance. Annual
Slide 74: Reconciliation of non-GAAP measures
INVESTOR DAY 2025 Reconciliation of non-GAAP (in Millions) Q3'22 FY 2023 Q4'24 FY 2024 measures Net Income (Loss) attributable to Hippo $(129.2) $(273.1) $ 44.2 $(40.5) used in this Net investment income (2.5) (23.1) (6.3) (24.4) presentation Depreciation and amortization 3.8 19.8 5.8 23.2 Stock-bas
Slide 75: Reconciliation of non-GAAP measures
INVESTOR DAY 2025 Reconciliation Years Ended December 31, 2024 of non-GAAP Revenue from external customers SERVICES INSURANCE-AS-A-SERVICE HIPPO HOME INSURANCE PROGRAM TOTAL measures Net earned premium $ - 63.5 209.0 272.5 Commission income, net 32.5 24.1 4.0 60.6 Service and fee income 0.6 - 11.0 1
Slide 76: Reconciliation of non-GAAP measures
INVESTOR DAY 2025 Reconciliation Years Ended December 31, 2024 of non-GAAP Revenue from external customers SERVICES INSURANCE-AS-A-SERVICE HIPPO HOME INSURANCE PROGRAM TOTAL measures Net earned premium $ - 42.9 64.6 107.5 Commission income, net 23.9 19.8 7.3 51.0 Service and fee income 0.5 0.3 14.9
Slide 77: Reconciliation of non-GAAP measures
INVESTOR DAY 2025 Reconciliation Years Ended December 31, 2024 of non-GAAP Revenue from external customers SERVICES INSURANCE-AS-A-SERVICE HIPPO HOME INSURANCE PROGRAM TOTAL measures Net earned premium $ - 22.5 20.0 42.5 Commission income, net 16.7 11.4 25.0 53.1 Service and fee income 0.9 - 13.0 13
Slide 78: allejexe
allejexe INVESTOR DAY 2025 Nyse!