Home insurtech Hippo released its Q3 2024 financial results, showing a 65% YoY revenue increase, supported by stronger premium retention aligned with risk retention.
Hippo reported $95 mn in revenue for the quarter, up from $58 mn in Q3 2023. Total Generated Premium (TGP) reached $368 mn, a 21% increase from the previous year.
The financial report credited services and IaaS as key drivers of TGP growth, with services up 46% YoY and IaaS up 12%.
Higher premium retention at HHIP played a significant role. The Q3 accident period loss ratio at HHIP dropped by 22 percentage points to 70%. Hippo also posted a net loss of $8.5 mn, an 84% reduction compared to the previous year. The firm attributed this improvement to strategic measures, despite the impact of an active hurricane season.
The momentum we’ve built over the past year continued, marking a major step toward profitability. We strengthened our foundation for growth by expanding our Hippo New Homes Program, and we achieved our best-ever YoY improvement in non-weather loss ratios, positioning us for future success.
Rick McCathron, Hippo’s President and CEO
This success stemmed from strategic rate adjustments, improved underwriting, and a focus on insuring newer homes, which face fewer non-weather-related losses.
Even with a strategic move away from higher-CAT regions, Hippo managed to improve the non-PCS loss ratio.
Hippo sold a majority stake in First Connect Insurance Services to Centana Growth Partners. This deal will bring new capital to First Connect, supporting its expansion.
Since acquiring First Connect in 2020, it has become a leading platform for linking independent agents with carriers. As Hippo hones its core operations, this is the right time for First Connect to grow independently
“We look forward to staying connected as a partner, customer, and minority shareholder”, McCathron commented.
