Hippo Holdings Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $110.3 million, a 30% increase from $85.1 million in the same period last year. The growth was primarily driven by a significant rise in net earned premiums, which reached $87.3 million, up 44% from $60.5 million in Q1 2024. However, the company also faced increased expenses, leading to a net loss attributable to Hippo of $47.7 million, compared to a loss of $35.7 million in the prior year, marking a 34% increase in losses.
The company's total expenses for the quarter amounted to $155.9 million, a 32% rise from $118 million in Q1 2024. The increase in expenses was largely attributed to losses and loss adjustment expenses, which surged to $92.4 million, up 76% from $52.6 million a year earlier. This spike was significantly influenced by the impact of the LA Wildfires, which accounted for approximately $44.1 million in losses. Additionally, insurance-related expenses rose by 45% to $30.2 million, reflecting higher acquisition costs associated with increased premium retention.
In terms of operational metrics, Hippo's gross written premium for the quarter was $210.9 million, an 8% increase from $194.7 million in Q1 2024. The company reported a gross loss ratio of 95%, up from 59% in the previous year, primarily due to the aforementioned wildfire events. The net loss ratio also increased to 106% from 87%, indicating a challenging environment for underwriting profitability. Despite these challenges, Hippo's Insurance-as-a-Service segment saw a remarkable 91% revenue growth, driven by improved premium retention and performance of existing programs.
Looking ahead, Hippo Holdings is focused on expanding its customer base and enhancing its product offerings. The company aims to leverage its technology and data analytics capabilities to improve underwriting accuracy and customer retention. Additionally, Hippo is exploring new strategic partnerships and cross-selling opportunities to increase revenue streams. The company is also in the process of issuing a $50 million surplus note, pending regulatory approval, which is expected to bolster its capital position and support future growth initiatives.
About Hippo Holdings Inc.
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