Hippo's Q1 2025: Unpacking Contradictions in Growth Funding, Reinsurance Impact, and Market Access

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Financial Performance and Growth:
- Hippo Holdings Inc. reported revenue growth of 30% year-over-year in Q1 2025, with $110 million in revenue.
- This growth was driven by increased premiums and revenue from both the insurance-as-a-service and Hippo Home Insurance Program segments.

Spinnaker Insurance Platform Expansion:
- The Spinnaker Insurance platform saw 27% year-over-year growth in gross earned premium.
- This was due to strong performance in existing programs and higher risk retention in select programs, demonstrating the platform's value in diversifying Hippo's premium base.

Impact of Los Angeles Wildfires:
- The wildfires in Los Angeles resulted in a 56 percentage points year-over-year increase in HHIP gross loss ratio.
- Despite this, none of these losses were related to the new homes channel, which has been a significant source of new business for Hippo.

Operational Leverage and Cost Management:
- Hippo achieved a 18% year-over-year decrease in sales, marketing, technology, and administrative expenses, amounting to a saving of $7 million.
- This was accomplished through investments in infrastructure and automation, supporting future operating leverage improvements.