Hippo (HIPO) Investor Day 2025 summary

Strategic transformation and business evolution

• Transitioned from a monoline homeowners insurer to a diversified, technology-forward platform, expanding into renters, commercial property, and casualty lines, with a focus on positively selected risk and lower volatility.

• Achieved and surpassed aggressive 2022 targets, including 3.5x revenue growth, positive adjusted EBITDA, and improved risk profile through underwriting, operational efficiency, and portfolio diversification.

• Shifted new business mix to builder-sourced new homes, reducing exposure to high-risk geographies, with new homes now 25% of the portfolio versus 5% in 2021, and improved loss ratios.

• Expanded Spinnaker’s hybrid fronting platform to 30 active programs and 18 partners, licensed in 50 states, with $618M gross written premium in FY24, driving diversification and stable underwriting profits.

• Emphasized disciplined risk management, technology investment, and operational excellence as core pillars for sustainable, scalable growth.

Financial guidance and future targets

• Set 2028 targets: over $2 billion gross written premium, $125 million+ adjusted net income, and 18%+ adjusted return on equity.

• 2025 guidance: gross written premium of $1.05–$1.1B, net loss ratio of 72–74%, and adjusted net income of ($10M) to ($14M).

• Expect to be net income positive by end of 2025, with full-year profitability in 2026 and strong capital position negating the need for additional capital raises.

• Plan to double gross written premium by 2028 through organic growth, new program additions, expanded builder channel access, and selective growth in non-new home segments.

• Maintain risk retention at 40–45% and stable net loss ratios, leveraging operating leverage and investment income to drive profit growth.

Strategic partnerships and business development

• Announced expanded partnership with Baldwin, tripling builder access and enabling reach to 20 of the top 25 US home builders via the Westwood platform.

• Baldwin acquired builder distribution assets for $100 million, with Hippo providing capacity and risk participation, enhancing growth and diversification.

• Spinnaker’s platform continues to add new programs and diversify into casualty and commercial lines, maintaining an A- rating for capital efficiency.

• Diversified premium mix, with non-homeowners lines growing from 45% in 2022 to 70% in 2024.

• Enhanced technology and operational integration streamline partner onboarding and support scalable growth.