ヒッポホールディングスの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

現行レポート

セクション13または15に基づいて(D)

1934年の証券取引所法の

報告日（最も古いイベントの報告日）：2024年3月6日

Hippo Holdings Inc.

(チャーターで指定された登録者の正確な名前)

デラウェア

001-39711

32-0662604

(設立または組織の州またはその他の管轄区域)

(Commission File Number)

(I.R.S. Employer Identification Number)

150 Forest Avenue

Palo Alto, California 94301

650 294-8463

(登録者の主要な経営陣の住所（郵便番号を含む）および電話番号（市外局番を含む）。)

(前回の報告書以降に変更があった場合、旧姓または旧住所)

フォーム8-Kが、以下の規定のいずれかに基づく登録者の提出義務を同時に満たすことを意図している場合は、以下の該当するボックスにチェックを入れてください：


			☐			証券法の規則425に基づく書面によるコミュニケーション

			☐			証券取引法のルール14a-12に基づく勧誘資料

			☐			証券取引法のルール14d-2(b)に基づく開始前のコミュニケーション

			☐			証券取引法のルール13e-4（c）に基づく開始前のコミュニケーション

法第12条(b)に従って登録された証券：

Title of each class

Trading Symbol(s)

登録されている各取引所の名称

普通株式、1株あたりの額面は0.0001ドル

HIPO

New York Stock Exchange

普通株式を購入するためのワラント

HIPO.WS

New York Stock Exchange

登録者が1933年証券法規則405（本章230.405節）または1934年証券取引法規則12b-2（本章240.12b-2節）で定義される新興成長企業であるかどうかをチェックマークで示す。

Emerging growth company ☒

新興成長企業の場合、登録者が取引所法第13条(a)に従い提供される新規または改訂された財務会計基準に準拠するための移行期間の延長を利用しないことを選択した場合は、チェックマークで示す。☐

Item 2.02 営業成績および財務状況

2024年3月6日、ヒッポ・ホールディングス・インク（以下「当社」）は、2023年12月31日に終了した四半期および年度の特定の財務結果を発表する株主書簡およびプレスリリースを発表した。株主書簡およびプレスリリースのコピーはそれぞれ本報告書の別紙99.1および99.2として提出されている。

当社は株主通信、プレスリリースおよび関連する電話会議において、非GAAP財務情報を参照しています。これらのnon-GAAP財務指標の最も近いGAAP等価物への調整は株主通信に記載されている。

本Form 8-Kの別紙99.1および99.2を含め、本Form 8-Kの項目2.02に記載された情報は、1934年証券取引所法第18条（改正後）において「提出」されたものとはみなされず、また同法第18条または1933年証券取引所法第11条および第12条（a）（2）（改正後）の適用を受けるものでもありません。本項目2.02および添付の別紙99.1および99.2に記載された情報は、本報告書の日付の前後を問わず、当社が証券取引委員会に提出した登録届出書またはその他の文書に参照により組み込まれることはありません。

Item 9.01 財務諸表および添付資料

(d) 出展物


Exhibit Number			Exhibit Title or Description
99.1			2024年 3月 6日付株主書簡
99.2			2023年12月期第4四半期決算発表プレスリリース。
104			カバーページインタラクティブデータファイル（inline xbrlドキュメントに埋め込まれています。)

SIGNATURES

1934年証券取引法の要件に従い、登録者は本報告書に正式に権限を付与された署名者により、登録者を代表して署名させた。

Date: March 6, 2024


HIPPO HOLDINGS, INC.

By:						/s/ STEWART ELLIS
						Stewart Ellis
						Chief Financial Officer

EX-99.1 2 hippo-shareholdersxq423.htm EX-99.1 hippo-shareholdersxq423

` Letter to Shareholders | Q4 2023 1 Q4 2023 LETTER TO SHAREHOLDERS

` Letter to Shareholders | Q4 2023 2 KEY HIGHLIGHTS FROM Q4 Favorable Mix-Shift Driving Top-line Growth • Insurance-as-a-Service (IaaS) and Services driving TGP growth, up 39% and 20% YoY, respectively in Q4 • Consolidated TGP up 15% YoY, with IaaS and Services now representing 77% of Total TGP • Revenue up 80% YoY to $64 million Continued HHIP Loss Ratio Improvement • Hippo Homeowners Insurance Program (HHIP) Q4 Accident Period loss ratio improved 24 percentage points from a year ago to 64% • Hippo Homeowners Insurance Program (HHIP) Q4 Accident Period Non-PCS loss ratio improved 11 percentage points from a year ago to 59% Generating Substantial Operating Leverage • GAAP Operating expenses, excluding loss and loss adjustment and insurance related expense, declined from 158% of revenue a year ago to 75% in Q4 Net Loss and Adjusted EBITDA continuing to improve • Q4 GAAP net loss attributable to Hippo of $42 million down 33% from Q4 2022 • Q4 Adjusted EBITDA loss of $22 million down 53% from Q4 2022 Financial Strength • Year-end Cash and investments of $491 million • Year-end Spinnaker surplus of $191 million, up from $165m a year ago Total Generated Premium in-Force +40% Revenue +80% HHIP Accident Period Loss Ratio1 -24pp Adjusted EBITDA (Loss) -53% (1) Defined as a percentage, which is the ratio of loss and loss adjustment expenses incurred and attributed to an accident period to the gross earned premium. $602M $813M $1,140M Q4 '21 Q4 '22 Q4'23 $32M $36M $64M Q4 '21 Q4 '22 Q4'23 78% 88% 64% Q4 '21 Q4 '22 Q4'23 -$46M -$47M -$22M Q4 '21 Q4 '22 Q4'23 YoY YoY YoY YoY

Letter to Shareholders | Q4 2023 3 Q4’23: TURNING THE CORNER Dear Shareholders, The beginning of a new year presents an opportunity to reflect on the past and internalize its lessons before moving forward with renewed enthusiasm and focus. In two short years, we have nearly doubled our total generated premium from $606 million to $1.1 billion and more than doubled our revenue from $91 million to $210 million, all while lowering fixed expenses from $140 million to $138 million and improving the gross loss ratio on our Hippo Home Insurance Program by approximately 40 percentage points. We learned that our customers want the ability to buy not just Hippo home insurance policies from us, but other kinds of policies from third-party carriers as well. We have taken this to heart and re-focused our consumer agency on finding the best policy for each customer, regardless of the carrier. We believe that for our target Generation Better customers, especially those who are buying a newly built home, a Hippo homeowners’ policy will be the best option. But if a customer is a better fit with another carrier, we will work to find the best option from across our 50+ carrier partners. We learned that there is a real need in the market for carrier services focused on serving MGAs, where much of the innovation in the insurance market is happening. Our Spinnaker Insurance-as-a-Service (“IaaS”) business has an industry-leading platform and robust underwriting processes that have allowed us to grow at an accelerating rate in 2023 while avoiding many of the pitfalls experienced by our competitors last year. We are especially excited to have achieved this growth while expanding our operating margin in this already- profitable portion of our business; truly a win-win for both Spinnaker and its customers. Generation Better Our “Generation Better” target customers have a desire to proactively maintain their homes and a willingness to use technology to do so.

Letter to Shareholders | Q4 2023 4 And finally, we also learned that there are some risks, and some geographies, to which we would prefer less exposure as we seek to improve the predictability and profitability of our Hippo Home Insurance Program. In the second half of 2023, we launched an aggressive program to raise deductibles for wind and hail in certain geographies and began non-renewing policies in higher-cat areas where we had excess concentration. These actions are intended to reduce exposure to the kinds of losses we experienced in the second quarter of 2023. A quick thought-experiment illustrates how those decisions are paying off: if we experience the exact same hailstorms this coming year, with the same level of severity, the program of deductible changes and selective non-renewals in CAT concentrated areas that is currently in progress would reduce Hippo’s direct losses by approximately 55%. Moreover, because the changes that began last October take a full year to work their way through policy renewal dates, the benefits in 2025 would be even greater: an almost 80% reduction in direct losses if the hailstorms from second quarter of 2023 were to reoccur. These initiatives, when combined with the actions we took in the second half of 2023 to streamline our operations and reduce our fixed expenses, give us greater confidence that we are on track to achieve our profitability goals ahead of schedule, with a mix that is shifting toward businesses with lower volatility and higher predictability. As we enter 2024, we believe we are incredibly well-positioned to compete for business in our core markets and in our core customer segments. It is time for Hippo to go back on offense. Sincerely, Richard McCathron President & CEO

Letter to Shareholders | Q4 2023 5 Q4’23 AND FY23 RESULTS Q4’23 and FY23 Highlights Q4’23 AND FY23 FINACIALS: KPIS, SEGMENT INFORMATION, AND NON-GAAP FINANCIALS 2023 was a remarkable year of change for Hippo. We doubled down on meeting the needs of our customers, streamlined our operations, focused on segments of the market where we have a significant competitive advantage, and simplified our reinsurance structure. We exit the year as a business transformed by these efforts: increasingly predictable, and with far clearer visibility into both how and when we will achieve profitability. (1) Defined as a percentage, which is the ratio of non-PCS loss and loss adjustment expenses incurred and attributed to an accident period to the gross earned premium.

Letter to Shareholders | Q4 2023 6 530- 550 460 250- 260 +22% 630- 670 514 279 157 361 288 358 330 366 Total Generated Premium (“TGP”) During 2023, we grew TGP from $811 million to more than $1.1 billion, an increase of 40%. More important than the growth itself, was how we achieved it: the parts of our business that are less exposed to underlying weather and underwriting volatility grew at an accelerating rate, while we significantly reduced our exposure to weather in our primary homeowners’ insurance program. During Q4, the most profitable and predictable components of our business (IaaS and Services) collectively represented 77% of our TGP, up from 59% in the fourth quarter of 2021. In these businesses, we act as agency for third-party carriers and front for MGAs and take significantly less risk than in our Hippo Home Insurance Program segment. We expect these trends to continue in the coming year, with TGP growing during 2024 to more than $1.3 billion, with the Services and IaaS segments collectively representing ~85% of total TGP by the final quarter of the year. HHIP Services Insurance-as-a-Service 2021–2024 Total Generated Premium1 by segment, $m Q4’21–Q4’24F Total Generated Premium by segment, % of Total 1,300 - 1,370 1,134 811 606 2021 2022 2023 2024F Q4’21 Q4’22 Q4’23 Q4’24F 1. Total TGP is lower than sum of all segments, due to intercompany eliminations 41% 38% 29% 18% 41% 36% 39% 43% 15% 23% 35% 41%

Letter to Shareholders | Q4 2023 7 71 44 +75% 210 120 102 64 37 37 Revenue During the year, we grew Revenue significantly faster than TGP, from $120 million to $210 million, an increase of 75%. This growth was a result of increases in the scale of our Services and Insurance-as-a-Service segments, combined with structural changes to our program-specific reinsurance structure at HHIP. In 2022, we retained only 12% of the premium associated with our homeowners’ policies, but 30% of the risk. In 2023, we were able to retain 39% of the premium, but only 46% of the risk, significantly narrowing the gap between risk retention and premium retention, thereby getting paid more fully for the risk we retained. By moving away from our past reinsurance structure and bringing premium more in-line with the risk we are retaining, we were able to monetize the insurance risk more effectively, which is a key driver of both revenue growth and profitability. 2022–2023 Revenue1 by segment, $m HHIP Proportional Premium and Risk retention, % of Gross Written Premium Risk Retention Premium Retention 46% Services Insurance-as-a- Service HHIP 2022 2023 2022 2023 1. Total TGP is lower than sum of all segments, due to intercompany eliminations 39% 30% 12%

Letter to Shareholders | Q4 2023 8 340-360 210 215- 225 102 71 44 95- 105 50- 55 We expect 2024 revenue to continue to grow at an accelerated rate relative to TGP, rising more than 60%, from $210 million in 2023 to more than $340 million in 2024. Importantly, we expect to be able to achieve this while lowering our underlying volatility and exposure to the weather that has contributed to our historical losses, as measured by an almost 60% reduction we expect to achieve in our underlying severe weather exposure. 2023–2024 Revenue by segment, $m HHIP – 1:250 Gross Occurrence and Aggregate Exceedance Probability Occurrence Exceedance Probability Aggregate Exceedance Probability Services Insurance-as-a- Service HHIP 2023 2024F 2023¹ 2024F² 1. Based on in-force as of 6/30/23 2. Based on pro-forma as of 9/30/24 Because of our consistent, historical track record of attritional loss ratio improvement, combined with the expected reduction in underlying volatility and exposure to the weather, we felt comfortable transitioning to a more traditional excess of loss (XoL) reinsurance structure, retaining nearly all the attritional risk and related premium, and purchasing XoL reinsurance to protect against major catastrophic weather events. This transition to XoL reinsurance will better align our net earned premium with risk retention and will also allow us to further narrow the gap between gross and net loss ratio. -57% -54%

Letter to Shareholders | Q4 2023 9 Loss and Loss Adjustment Expense Loss and Loss Adjustment expenses during 2023 were significantly higher than our expectations because of outsized weather losses in the second quarter. The wind and hail losses during that time masked the significant and continued improvement in our non-PCS loss ratio over the course of the year, with 2023 non-PCS loss ratio improving 13 percentage points to 63% in 2023 vs. 76% in 2022. Q1’22-04’23 HHIP Accident Period Loss Ratio by peril, % of Total Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 As we’ve discussed in previous shareholder letters, we responded to the excess weather losses during the year with aggressive actions to raise deductibles in wind and hail exposed geographies and selective policy non-renewals in cat-exposed geographies more generally. The combined effects of rate and underwriting actions taken in 2022 and 2023, which resulted in 28% written rate increase in the fourth quarter of 2023, and the actions taken to structurally reduce our exposure to cat-related volatility mean that the expected loss ratio of the business we wrote in Q4 was far better than at the end of 2022. PCS 40% 50% 97% 20% 88% 95% 39% 28% 64% 5% Non-PCS 77% 77% 70% 64% 60% 67% 59%

Letter to Shareholders | Q4 2023 10 -27PP 103% 72-78% 76% 63% 52- 58% 20% 31% In 2024, we expect to realize additional benefit to our gross loss ratio as previous rate and underwriting actions earn into our financials, as well as significantly lower losses from Cat events due to reduced exposure and higher deductibles. In 2024, we are targeting HHIP gross non-PCS loss ratio to be between 52% and 58%, with an expected PCS Cat load of 20%. In 2024, we expect HHIP net loss ratio to be 85-90%, down more than 160 percentage points from 2023 due to the improvements in gross loss ratio and more effective use of reinsurance. Similarly to the trend we experienced in 2023, we expect the net loss ratio improvement to happen gradually over the year, with Q4’24 expected net loss ratio under 75%. We expect additional improvements in 2025, when we expect net loss ratio to be less than 75% for the full year. HHIP Accident Period Loss Ratio by peril, % HHIP Net Loss Ratio, % 107% 428% ` PCS Non-PCS 2022 2023 2024F 2022 2023 2024F 1. 2023 Expected CAT Load, per our previous guidance, was 28% -169PP -169PP 256% 85-90%

Letter to Shareholders | Q4 2023 11 Fixed Expenses and Operating Leverage During 2023, we complemented our robust top-line growth with a disciplined and sustained effort to drive efficiency into our operations. The result has been a year over year decline in our fixed expenses, from $166 million in 2022 to $138 million in 2023. This efficiency improvement is even more impressive when viewed in conjunction with our top line growth, with fixed expenses falling from 138% of 2022 revenue to only 66% of 2023 revenue. And more encouraging, only a small percentage of the benefits of our late 2023 cost reduction measures are reflected in these numbers. For 2024, we expect fixed expenses to continue to decline, by more than 20% in absolute dollar terms, and to less than 31% of expected 2024 revenue.

Letter to Shareholders | Q4 2023 12 Adjusted EBITDA During 2023, our top-line growth, mix-shift toward more predictable and more profitable businesses, more effective use of reinsurance, rate and underwriting improvements at HHIP, and efficiency gains across our organization leave us with a clear line of sight to delivering positive Adjusted EBITDA earlier than we expected when we entered the year. We finished Q4 2023 with an adjusted EBITDA loss of $22 million, down more than 50% from our adjusted EBITDA loss of $47 million in Q4 2022. And as mentioned previously, many of the improvements we have made in 2023 are only partially reflected in our Q4 financials. Looking forward, we expect an adjusted EBITDA loss of only $41-51 million for the full year 2024, down more than 75% from 2023, with over 90% of this loss coming in the first half of the year. We expect to turn adjusted EBITDA positive during the second half of the year and for Q4 to be fully Adjusted EBITDA positive.

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