Hippo Holdings Inc. Reports Strong Q4 2024 Results

Hippo Holdings Inc ( (HIPO) ) has released its Q4 earnings. Here is a breakdown of the information Hippo Holdings Inc presented to its investors.

Hippo Holdings Inc., a proactive home insurance group, focuses on safeguarding homeownership through real-time data and home services, operating primarily in the insurance sector. In its latest earnings report, Hippo Holdings Inc. announced a significant turnaround in its financial performance for the fourth quarter of 2024, highlighted by a substantial increase in revenue and a return to profitability. The company reported a 58% year-over-year increase in revenue for Q4, reaching $102 million, and a full-year revenue growth of 77% to $372 million. Notably, Hippo achieved a net income of $44 million, a stark contrast to the $42 million net loss in the same quarter the previous year, largely aided by a $46 million gain from the sale of First Connect. The company’s Insurance-as-a-Service segment grew by 22%, contributing to a 16% increase in Total Generated Premium. Hippo also reported improvements in its loss ratios, with the HHIP gross loss ratio improving by 3 percentage points year-over-year to 50%, and the net loss ratio improving by 46 percentage points to 60%. The company achieved positive adjusted EBITDA of $8.5 million, a significant improvement from the $22 million loss in Q4 of the previous year. Looking ahead, Hippo’s management remains optimistic about 2025, aiming for further improvements in operating income and targeting positive net income by the end of the year, despite the impact of recent wildfires in Los Angeles. The company’s strategic focus on operational efficiencies and expanding its New Homes Channel positions it well for continued growth and profitability.