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Despite the wildfires’ impact, the company\u2019s Insurance-as-a-Service (IaaS) revenue grew 91% year-over-year. This growth was driven by higher gross earned premium and higher premium retention.<\/p>\nHome insurance group Hippo, has announced its financial results for the first quarter of 2025, reporting year-on-year revenue growth of 30% to $110 million, with net loss increasing by $12 million to $48 million, with the Los Angeles wildfires contributing $45 million.<\/p>\n
Despite the wildfires’ impact, the company\u2019s Insurance-as-a-Service (IaaS) revenue grew 91% year-over-year. This growth was driven by higher gross earned premium and higher premium retention.<\/p>\n
Conversely, Hippos Home Insurance Program (HHIP) revenue grew by 12% year-over-year, driven by higher premium retention offset by lower gross earned premium.<\/p>\n
HHIP Gross Loss Ratio stood at 121% in Q1 2025, a 41pp increase from Q1 2024. According to Hippo, the LA wildfires contributed 56pp.<\/p>\n
HHIP non-PCS loss ratio improved 8 percentage points year-over-year, to 53%. HHIP PCS loss ratio for the quarter was 68%, with the LA wildfires contributing 56pp. Consolidated Net Loss Ratio reached 106%, which includes 51pp from the LA wildfires.<\/p>\n
The company\u2019s adjusted EBITDA loss increased $21 million to $41 million, with the LA wildfires contributing $45 million to this figure as well. .<\/p>\n Hippo\u2019s investments in operational efficiencies continued to pay off as fixed expenses (S&M, T&D, and G&A) declined by $7 million while revenue increased by $25 million year-over-year.<\/p>\n This resulted in an 18pp decrease year-over-year in these costs as a percentage of revenue, from 48% of revenue in Q1 2024 to 30% in Q1 2025.<\/p>\n Hippo reported cash and investments, excluding restricted cash, of $528 million, a $42 million decrease quarter-over-quarter. It attributed most of this decrease to losses from LA wildfires.<\/p>\n The company also announced it has signed an agreement to raise a $50 million surplus note. It is currently pending regulatory approval and is expected to close in Q2’25.<\/p>\n The insurer plans to use the incremental, risk-based capital to support the growth of diversified product lines it accesses via the Spinnaker platform. The Spinnaker surplus now stands at $198 million.<\/p>\n “We delivered on two of our most important objectives as a company. We proactively supported customers affected by the Los Angeles wildfires and further advanced the key long-term value drivers in our business,” said Hippo President and CEO Rick McCathron.<\/p>\n He continued: “Our homebuilder channel, which provides access to new, more resilient homes, drove a 35% year-over-year increase in gross written premium. Written premium outside of the Hippo Home Insurance Program increased by 21% year-over-year\u2013\u2013an important source of diversification.<\/p>\n “High interest in our surplus note demonstrates the trust and enthusiasm investors have in Hippo and our ability to sustain a growth trajectory while maintaining strong underwriting results.\u201d<\/p>\n The post Hippo reports 30% revenue growth amidst wildfire impact in Q1’25<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Home insurance group Hippo, has announced its financial results for the first quarter of 2025, reporting year-on-year revenue growth of 30% to $110 million, with net loss increasing by $12 million to $48 million, with the Los Angeles wildfires contributing $45 million. Despite the wildfires’ impact, the company\u2019s Insurance-as-a-Service (IaaS) revenue grew 91% year-over-year. This […]<\/p>\n","protected":false},"author":1,"featured_media":3961,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/3959"}],"collection":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/comments?post=3959"}],"version-history":[{"count":3,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/3959\/revisions"}],"predecessor-version":[{"id":3963,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/3959\/revisions\/3963"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media\/3961"}],"wp:attachment":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media?parent=3959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/categories?post=3959"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/tags?post=3959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Download](\"http:\/\/calebdewey.com\/wp-content\/uploads\/2025\/05\/catastrophe-bond-ils-market-report-q1-2025-728x90-2.png\")
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