Slides
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DisclaimerINVESTOR DAY 2025 2 This presentation includes the non-GAAP financial measure (including on a forward-looking basis) Adjusted EBITDA. Hippo defines Adjusted EBITDA, a non-GAAP financial measure, as net loss attributable to Hippo excluding interest expense, income tax expense, depreciation, amortization, stock-based compensation, net investment income, restructuring charges, impairment expense, gains and losses on sales of business, other non-cash fair market value adjustments, and contingent consideration for one of our acquisitions and other transactions that we consider to be unique in nature. Hippo excludes these items from Adjusted EBITDA because it does not consider them to be directly attributable to its underlying operating performance. This non-GAAP measure is an addition, and not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP. Reconciliations of non-GAAP measures to their most directly comparable GAAP counterparts are included in the Appendix to this presentation. Hippo believes that these non-GAAP measures of financial results (including on a forward-looking basis) provide useful supplemental information to investors about Hippo. Hippo’s management uses forward looking non- GAAP measures to evaluate Hippo’s projected financial and operating performance. However, there are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore Hippo’s non-GAAP measures may not be directly comparable to similarly titled measures of other companies. This presentation also includes certain projections of non-GAAP financial measures. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, Hippo is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable effort. Consequently, no disclosure of estimated comparable GAAP measures is included, and no reconciliation of the forward-looking non-GAAP financial measures is included.This presentation also includes key operating and financial metrics including Gross Loss Ratio and Net Loss Ratio. We define Gross Loss Ratio expressed as a percentage, which is the ratio of the gross losses and loss adjustment expenses to the gross earned premium. We define Net Loss Ratio expressed as a percentage, which is the ratio of the net losses and loss adjustment expenses to the net earned premium. Non-GAAP Financial Measures Certain statements included in this presentation that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial results and other operating and performance metrics, our business strategy, our cost reduction efforts, the quality of our products and services, and the potential growth of our business, including our ability and timing to achieve profitability. These statements are based on the current expectations of Hippo’s management and are not predictions of actual performance. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, and many actual events and circumstances are beyond the control of Hippo. These forward-looking statements are subject to a number of risks and uncertainties, including our ability to achieve or maintain profitability in the future; our ability to retain and expand our customer base and grow our business, including our builder network; our ability to manage growth effectively; risks relating to Hippo’s brand and brand reputation; denial of claims or our failure to accurately and timely pay claims; the effects of intense competition in the segments of the insurance industry in which we operate; the availability and adequacy of reinsurance, including at current coverage, limits or pricing; our ability to underwrite risks accurately and charge competitive yet profitable rates to our customers, and the sufficiency of the analytical models we use to assess and predict exposure to catastrophe losses; risks related to our proprietary technology and our digital platform; outages or interruptions or delays in services provided by our third party providers, including our data vendor; risks related to our intellectual property; the seasonal and cyclical nature of our business; the effects of severe weather events and other natural or man-made catastrophes, including the effects of climate change, global pandemics, and terrorism; any overall decline in economic activity; the effects of existing or new legal or regulatory requirements on our business, including with respect to maintenance of risk-based capital and financial strength ratings, data privacy and cybersecurity, and the insurance industry generally; and other risks set forth in the sections entitled “Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Forward-Looking Statements Safe Harbor
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Today ’sAgendaINVESTOR DAY 2025 3 TIMESESSIONSPEAKERROLE ~50 MINUTES WelcomeAndrea CollinsChief Marketing OfficerExecutive SummaryRick McCathronPresident & CEOOur Journey to TodayStewart EllisChief Strategy OfficerOur Go-Forward StrategyRick McCathronPresident & CEOFireside Chat10 MINUTESBreak ~75 MINUTES Spinnaker PlatformTorben Ostergaard President & CEO, SpinnakerHippo Home InsuranceMichael StienstraAndrea CollinsChief Insurance OfficerChief Marketing OfficerManaging Risk & VolatilityJesse WillmottCFO & COO, SpinnakerFinancials & OutlookGuy ZeltserChief Financial Officer45 MINUTESQ&AClosing RemarksRick McCathronPresident & CEO
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Rick McCathronPresident & Chief Executive Officer
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Key Themes for TodayINVESTOR DAY 2025 5 Primed to Deliver Consistent Bottom Line Growth with an Attractive Return on Equity and Lower Volatility Business TransformationCompany VisionProven TeamDifferentiated ProductsOver the past three years, delivered on aggressive financial goals while diversifying our risk Building a platform to source diversified, positively selected risk to deliver high return on equity at lower volatility Talented, experienced insurance leaders want to work at HippoCompetitive advantages in both Spinnaker platform and our homeowners MGA, our right to winFlexible Risk ManagementTrack Record of ExecutionShareholder ValueFlexible business model that allows Hippo to capitalize on natural market cycles Consistently delivered on controllable guidance while reducing variability fromcat events Driving shareholder value in the near- and long-term
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Stewart EllisChief Strategy Officer
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Track Record of ExecutionINVESTOR DAY 2025 7 Since our last investor day in 2022, Hippo has exceeded its aggressive financial goals 202220252025Prior Investor Day GuideCurrent Forecast 119-121 420-450465-475 Revenue$ Million -55 9 Q3’22Q4’24Q4’24Prior Investor Day GuideActual 0-4 Adjusted EBITDA $ Million 400 515 56 As of Q4’24As of Q4’24Prior Investor Day GuideActuals Inorganic571 Cash & Investments $ Million
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Path to Positive Adjusted EBITDAINVESTOR DAY 2025 8 Pulling key levers for profitability at scale Q3’22 Q4’24Adjusted EBITDAImproved HHIP Underwriting ProfitOperating LeverageScale-up Insurance-as-a-ServiceScale-up ServicesAdjusted EBITDA 32 217 -55 39 Improved gross loss ratio, reduced volatility, and better risk selection and pricingDriven by automation, optimized footprint, and leaner operationsScaling premium by ~3x while improving UW performanceGrowth in non-Hippo policies placed through our Agency Key Drivers 1 2 3 4 1 2 3 4 Adjusted EBITDA Walk $ Million
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9%5%1%12% 53% 21% 99% 20222024 Rates and Terms 173 rate filings since 202282% cumulative rate increase achievedImproved policy terms and conditions Performance Drivers: Hippo Home InsuranceINVESTOR DAY 2025 9 Added the right new business, re-underwrote existing portfolio andsubstantially improved rates and policy terms 151118 7138687 12361 20222024OnlineAgentPartnerProducerBuilderAll OtherFLCATX HHIP New Business MixBusiness Mix (% of total)HHIP Geographic FootprintPremiums by State ($ Million)
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-81 -7 20222024 6% 69% 20222024 Driving A Trajectory of Profitable Growth at Hippo Home InsuranceINVESTOR DAY 2025 10 We are rapidly increasing net earned premiums while reducing our loss ratio and driving profitability 73%56% 34%19% 20222024 HHIP Underwriting Profit before Overhead1 $ MillionHHIP Gross Loss Ratio excluding PAY Reserve Release (% of total)HHIP Net Earned Premium % of Gross Earned Premium (% of total) Non-PCSPCS1.Underwriting profit is defined as revenue excluding NII less loss and lae and insurance related expense
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INVESTOR DAY 2025 We haven’t just been focusing onHippo Homeowners… We’ve been building a differentiated franchise inHybridFronting.11
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Performance Drivers: Hybrid FrontingINVESTOR DAY 2025 12 Diversifying the portfolio while delivering underwriting profit 3rd Party Homeowners19% Renters17% Casualty15%Other Personal Lines2% Commercial Property17% Hippo HHIP30% Gross Written Premium Mix – 2022 Gross Written Premium Mix – 2024 3rd Party Homeowners14% Renters15% Casualty10%Other Personal Lines1%Commercial Property5% Hippo HHIP55%
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Since Investor Day 2022INVESTOR DAY 2025 13 Financial (r)evolution supported by a nimble business model and technology platform MonolineHomeowners Company Fronting Fee Income Integrated Hippo Platform Increasingly diversified hybrid fronting platform with Hippo Homeowners as its anchor tenantTransformed from a monoline homeowners company with fronting as additional fee income $ Increased Scale Added Diversifying Lines of Business Improved Hippo Homeowners
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Rick McCathronPresident & Chief Executive Officer
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Founding Blocks for Success…INVESTOR DAY 2025 15 Differentiated Spinnaker platformHippo Homeowners Insurance Program RentersCommercial PropertyCasualty Non-Hippo HomeownersOtherPotential AcquisitionsOwnedNon-owned
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…With Key Enablers to Unlock Potential…INVESTOR DAY 2025 16 Differentiated Spinnaker platform Disciplined Approach to Portfolio and Risk Management Hippo Homeowners Insurance Program RentersCommercial PropertyCasualty Non-Hippo HomeownersOtherPotential Acquisitions World Class Team Tech-Forward Thinking OwnedNon-owned
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…Well-Positioned To Achieve Long-Term VisionINVESTOR DAY 2025 17OwnedNon-owned Differentiated Spinnaker platform Disciplined Approach to Portfolio and Risk Management Hippo Homeowners Insurance Program RentersCommercial PropertyCasualty Non-Hippo HomeownersOtherPotential Acquisitions World Class Team Tech-Forward Thinking Poised to deliver a superior return on capital from a well-balanced portfolio of risk
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Proven Team of Industry-Leading TalentINVESTOR DAY 2025 18 Today’s Speakers Years of Relevant Experience Rick McCathronPresident & Chief Executive Officer 32+MERCURY INSURANCE, SUPERIOR ACCESS, FIRST CONNECT Stewart EllisChief Strategy Officer 25+DLJ, EBAY Michael StienstraGM & Chief Insurance Officer, HHIP 19+CHUBB, QBE Torben OstergaardPresident & CEO, Spinnaker25+USAA, HSBC Andrea CollinsChief Marketing Officer 20+POLICYGENIUS, COWBELL Jesse WillmottCFO & COO, Spinnaker 20+AON, PWC Richard PrimeranoChief Reinsurance Officer39+RENAISSANCERE, SWISS RE, DELOITTE & TOUCHE, TRENWICK Re 23+Jo OverlineChief Technology OfficerSWINGDEV Paul WighamChief Risk Officer35+AIG, OSCAR Sara GarveyGeneral Counsel25+CHUBB, AEGIS Guy ZeltserChief Financial Officer 19+MCKINSEY & COMPANY Laura BoettcherChief Operations Officer18+Guy Carpenter, CompWest Insurance Kyle RamsayChief Product Officer13+NERDWALLET, LINKEDIN William MaloneVice President, Agency16+Chubb, The Hartford, Liberty Mutual Insurance Daniel BlanaruChief Growth Officer20+LinkedIn, The Boston Consulting Group Tracy LetzerichSenior Vice President, Head of People20+Wheel, Deloitte
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Technology-Forward ApproachINVESTOR DAY 2025 19 Leveraging technology to improve the customer experience across 19 Portfolio ManagementDriving portfolio management underwriting Operational EfficienciesDelivering seamless, integrated experience Differentiation at ScaleScaling the hybrid fronting platform in a differentiated way
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Introducing 2028 Financial TargetsINVESTOR DAY 2025 20 Delivering superior return on capital from a well-balanced and diversified portfolio of risk Gross Written PremiumAdjusted Net IncomeAdjusted Return on Equity>$2B>$125M 18%+
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New Strategic Partner: The Baldwin GroupINVESTOR DAY 2025 21 Launching a strategic partnership to accelerate the achievement of our long-term vision Hybrid FrontingSignificant expansion of Spinnaker’s decade-long support of Baldwin MGAs to provide additional, diversifying premium for our portfolio of risk HHIP New HomesAccess to the combined Westwood / Hippo builder distribution network will increase annual new construction leads by >3X Builder DistributionBaldwin to purchase Hippo’s builder distribution network for $100 million Allows Hippo to increase focus on underwriting, risk selection, and portfolio management while providing significant incremental capital to support our growth
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Torben OstergaardPresident & CEO, Spinnaker
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Spinnaker Platform: A Hybrid Fronting Carrier Access to Underwriting Across Diverse Partnerships & Lines of Business INVESTOR DAY 2025 23 A stable, predictable and profitable insurance company built on trust 3Insurance Carriers2 Admitted | 1 E&S50States Licensed 30Active Programs A-AM Best Financial Strength Rating$618MGross Written Premium39%Net Loss Ratio With Proven Track Record of Delivering Results (FY2024)2 Excluding HHIP1.Current program partners include programs that generated gross written premium in 2024 or have been formally onboarded to write business in 2025 2.All metrics reflect performance of the Spinnaker platform (non-Hippo programs)3.Segment Adjusted Operating Income + Net Investment Income / Surplus allocated to Spinnaker, non-Hippo programs 18ProgramPartners1 25%Return on Capital3
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We Are Driving Growth While Delivering Bottom-Line ProfitabilityINVESTOR DAY 2025 24 Delivered 25% return on capital in FY24, up significantly from 12% in FY22 279 514618 202220232024 60% 36%39% 202220232024 9 26 36 202220232024 Gross Written Premiums (ex-Hippo)$ MillionNet Loss RatioSegment Adjusted Operating Income + Net Investment Income$ Million
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Fronting Platform of Choice for MGAs 25 ExpertiseTeam of seasoned insurance professionals with proven ability to achieve results Risk ManagementCulture rooted in risk management, leveraging data and analytics to diversify and build trust TechnologyAdvanced technology platform and integrated systems to deliver tailored solutions for customers INVESTOR DAY 2025 TrustA company built on trusted partnerships, financial strength and operational excellence
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Leading with Deep Industry Expertise INVESTOR DAY 2025 26 Highly experienced and cohesive team committed to Spinnaker’s future growth USAAHSBC GEICOQBE GMMCHUBBPWCAON InclineNationwide Torben OstergaardPresident & CEO 25+ yearsRelevant Experience Jesse WillmottCFO & COO 20+ yearsRelevant Experience Charles ValinottiChief Underwriting Officer 30+ yearsRelevant Experience Juliette SongGeneral Counsel 10+ yearsRelevant Experience Austin BellHead of Business Development10+ yearsRelevant Experience
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Risk Management Philosophy: Stable, Predictable, ProfitableINVESTOR DAY 2025 27 Delivering stable and predictable underwriting profits, maintain an A- rating while building trust and confidence with our policyholders, partners and regulators Leverage data and analytics to understand our exposure and manage risk Conservative in nature with a strong risk management culture Operate with speed and agility, striving to deliver with operational excellence Delivered 25% return on capital in FY24, up significantly from 12% in FY22
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Followed Disciplined Approach to Underwriting and Program Management…INVESTOR DAY 2025 28 SourcingDiligenceLaunchMonitoringTermination •Strategy, Marketing, Branding•Broker & Direct Markets•Spinnaker Fit Evaluation•Licensing & Conflict Checks •Assessment•Underwriting Committee•Pre-binding Audit/Reviews•Reinsurance Feasibility•TPA Evaluation •Onboard into Systems & Processes•Reinsurance Contracting•MGA Contracting•Go-Live •Internal Reporting•Reinsurance Reporting•Virtual Audits•Onsite Audits•Regulatory Reporting •Contractual Protections•Reinsurance Run-off Provisions•MGA/TPA Policy Admin
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…Integrated Technology and Operations Enables Partner Success…INVESTOR DAY 2025 29 Tech Driven On-BoardingManual On-Boarding Process Streamlined Back-Office TechnologyLimited Use of Technology Advanced Data Infrastructure & ReportingBasic Data Management
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…To Deliver Results and Build Confidence and TrustINVESTOR DAY 2025 30 Proven ability to dial up or down risk based on market cycles and aligned with the long-term vision of our partnersWith a strong culture of risk management, we have safely increased risk retention while driving profitability……Resulting in long-term, trusted relationships with high quality MGA partnersPARTNERLOBSTENUREMSIHomeowners & Renters10 YearsSimply BusinessComm’l GL6 Years CoterieComm’l GL4 Years 10%10% 12% 7%8%9%10%11%12%13% 0100200300400500600700 202220232024 GWP Net Retention
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Our Playbook for Measured Growth and Risk Discipline In ActionINVESTOR DAY 2025 31 Case StudyApproachSlow & Steady GrowthIncrease capacity as performance continues to be stable and profitable Success & ScaleIncrease capacity as performance continues to improve and provides for above normal returns Underperform & TerminateBe a good partner, but act swiftly, when the program is underperforming and/or lacks appropriate reinsurance support Risk philosophy grounded in data, analytics and expertise
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73 89 116 145 44%32% 26%32% -4%16%36%56%76%96%116% 020406080100120140160 2021202220232024 Gross Written Premium Gross Loss Ratio Case Study #1: Slow and Steady GrowthINVESTOR DAY 2025 32 Increase capacity as performance continues to be stable and profitable
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Case Study #2: Success and ScaleINVESTOR DAY 2025 33 Increase capacity as performance continues to improve and provides for above normal returns 1 10 41 85128% 87%77%65% -4%16%36%56%76%96%116% 0102030405060708090 2021202220232024 Gross Written Premium Gross Loss Ratio
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Case Study #3: Underperform and TerminateINVESTOR DAY 2025 34 Be a good partner, but act swiftly, when program is underperformingand/or lacks appropriate reinsurance support 3 11 11 14 24%59%53%111% -250% -150% -50% 50% 150% 250% - 2 4 6 8 10 12 14 16 2018201920202021 Gross Written Premium Gross Loss Ratio
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Spinnaker Platform: A Hybrid Fronting Carrier Access to Underwriting Across Diverse Partnerships & Lines of Business INVESTOR DAY 2025 35 A stable, predictable and profitable insurance company built on trust 3Insurance Carriers2 Admitted | 1 E&S50States Licensed 30Active Programs A-AM Best Financial Strength Rating$618MGross Written Premium39%Net Loss Ratio With Proven Track Record of Delivering Results (FY2024)2 Excluding HHIP1.Current program partners include programs that generated gross written premium in 2024 or have been formally onboarded to write business in 2025 2.All metrics reflect performance of the Spinnaker platform (non-Hippo programs)3.Segment Adjusted Operating Income + Net Investment Income / Surplus allocated to Spinnaker, non-Hippo programs 18ProgramPartners1 25%Return on Capital3
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Michael StienstraGM & Chief Insurance Officer, HHIP
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Home Insurance Market is Expanding, Driven by Opportunities•New home construction has evolved toward more sophisticated builds with greater square footage and complex appliances, driving increased risk of damage and replacement costs•New homes are being built in exposed regions amid increased frequency and severity of climate-related events•Aging homeowners, less-skilled homeowners, and fewer repair workers is driving increasing maintenance and repair costs INVESTOR DAY 2025 37 Homeowners insurance market is expected to steadily grow and evolve over the next 30 years 20202021202220232024 $215.9$194.5$172.6$151.1$136.8 1.Source: Statutory filings Homeowners Insurance Market ($B)1
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With Our Exceptional Offering, Hippo is Well-Positioned to Capture This GrowthINVESTOR DAY 2025 38 Deep industry expertiseStrong underwriting capabilities Supported by technology We want to make it easy for great homeowners to find affordable coverage. Location House Customer
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Deep Industry ExpertiseINVESTOR DAY 2025 39 Our expert leadership team brings extensive insight and experience within the marketplace Michael StienstraGM & Chief Insurance Officer19+ yearsRelevant Experience Peter PiotrowskiChief Claims Officer 29+ yearsRelevant Experience Ilya ShnolChief Underwriting Officer21+ yearsRelevant Experience James FultsVP, Insurance Product 29+ yearsRelevant Experience Jake FalandaysChief Actuary 15+ yearsRelevant Experience CHUBBQBE AIGCHUBBCHUBBLiberty Mutual CHUBBNationwideAllstateLiberty MutualTokio Marine
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INVESTOR DAY 2025 Since 2022, we have achieved better risk-based pricing while reducing our loss ratio, driving higher profits. 40
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Our Portfolio TransformationINVESTOR DAY 2025 41 New management since 2021Average premiums: up 45% Loss costs: down >20% (both xCat & Cat) Diversified, attractive portfolio generating significant marginal profit 1.Evaluated as of 3/31/2025; Underwriting year performance refers to the financial results attributed to insurance policies based on the year in which the policy was underwritten, regardless of when claims are reported or settled.ALAE: Allocated Loss Adjustment Expenses 130%125%121%102%98%83% 54% 32% 3% 15% 2018201920202021202220232024E Uri Uri LA Wildfires HHIP Ultimate Loss and ALAE Underwriting Year Performance1
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Our Portfolio Transformation:Rating Improvements INVESTOR DAY 2025 42 Repriced entire portfolioIntroduced 18 new variables>200% rate increase on worst risks5-25% rate decrease on best risks0 2,000 4,000 6,000 8,000 10,000 12,000 < -40%-40% to-30%-30% to-20%-20% to-10%-10% to0%0% to10%10% to20%20% to30%30% to40%40% to50%50% to60%60% to70%70% to80%> 80% # Policies Premium Change The best customers receive a premium decrease The most underpriced customers will receive premium increases > 75% 1.Represents actual rate changes for 2022 Texas homeowners insurance (HO-3) policies Rating Improvements1
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Our Portfolio Transformation:Coverage Offerings INVESTOR DAY 2025 43 Deductible, roof payment schedules & others requirements change based on factors Non-renewals where necessary Highest risk areas have highest cost sharing with customer 50.0 -17.0 -7.3 25.8 -9.5 -6.3 10.0 With 2023 PIF, T&C 2024 PIF 2024 T&C Q2 Mid - 2024 PIF, T&C 2025 PIF 2025 T&C With 2025 PIF, T&C Q2’24 CAT What-If$ Million With 2023 PIF, T&C2024 PIF2024 T&CQ2 Mid – 2024 PIF, T&C2025 PIF2025 T&CWith 2025 PIF, T&C
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23%18%41%43%33%4%<1% 0%10%20%30%40%50% 20202021202220232024 98%95%89%84%76% 2%5%11%16%24% 0%20%40%60%80%100% 20202021202220232024OtherNew Homes Portfolio Our Portfolio Transformation:New Business INVESTOR DAY 2025 44 Focused growth on good homes, in good communities, that have run loss ratios <45% New homes' portfolio makes up ~25% of portfolio (vs. 5% in 2021) ALAE: Allocated Loss Adjustment Expenses Homeowners Exposures New Homes Portfolio Underwriting Year Ultimate Loss & ALAE Performance Uri
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Rating Engines(Current & Future) 17 Models Policy Level: Plan, Monitor, ExecuteINVESTOR DAY 2025 45 Pol Num: HTX-xxxx-02Proj Premium: $3,700Target Prem: $3,000Margin: $700Expected Retention: 38% …Pol Num: HTX-xxxx-01County: CollinCoverage A: 400,000W/H Ded: 1%Age of Home: 15Age of Roof: 10Roof Condition: Fair … Post-results, iterate through optimal actions AgingEngine By-Peril Loss Models Retention Engine
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RetentionEngine+AgingEngineRatingEngine Policy Level: Plan, Monitor, ExecuteINVESTOR DAY 2025 46 ++•Re-rating every policy through raters, calculate variable drift across 210 variables•Identify trends, issues, or opportunities•Refit Models to improve future projection •Predicts day customer is expected to leave: enables us to have daily AvsE & get ahead of early trends •Realtime shifts in portfolio quality to double down on opportunities & fix issues Loss Models
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Policy Level: Plan, Monitor, ExecuteINVESTOR DAY 2025 47 Issue: Getting overused for new & renewal Fix: Built e-verification tool à Easy to confirm Improve: Success was greater than planned (more premium at higher retention) à Rolled out to other discounts and other states Fix and Improve: Discounts
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Our Right to WinINVESTOR DAY 2025 48 Technology For every policy, every variable, we use technology. Our technology enables us to plan, monitor, and execute.Quick and easyGives us the tools for effective underwritingHigher return on capital Ability to ScaleEnabled by our technology, we have the ability to scale our diversified portfolio. Proactive Underwriting and ScreeningWe are building advanced models to maximize efficiency. Positioning us for future growth, without compromising on our loss ratio
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Andrea CollinsChief Marketing Officer
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Right To Win Through Our Go-To MarketINVESTOR DAY 2025 50 Real-time Quoting Seamless Data Collection Customer Segments that fit our Risk ProfileProactively identifying bundling opportunities to drive value Matching right customers with the right products (both Hippo and non-Hippo) Easy and efficient purchase experience supported by a tech-enabled approachExpanded distribution into new homes channel through specialized products
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Our Unique Value PropositionINVESTOR DAY 2025 51 Tailored OfferingsProactive CommunicationsPersonalized Experience Attracting, Supporting and Retaining the Right Customers Home Maintenance 85+13
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Jesse WillmottCFO & COO, Spinnaker
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Risk and Portfolio Management ApproachINVESTOR DAY 2025 53 We manage the risk across all of our businesses at the company level as a consolidated portfolio Reinsurance & Capital Framework Hippo Home CommercialRenters Casualty Cyber Programmatic ReinsuranceRetention Corporate Reinsurance
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How We Manage Across the Cycle INVESTOR DAY 2025 54 Flexible model allows for proactive modification across cycles Retention Programmatic Issues CorporateReinsurance ProgrammaticReinsurance Retention CorporateReinsurance Market Cycles Heavier reliance on fee-based incomeSoft market conditions Amplemarket capacity Increased retentions and reliance on UW incomeIncreased primary ratesIncreased reinsurance costs
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Access to a Diversified Set of Reinsurance StructuresINVESTOR DAY 2025 55 Variety of reinsurance structures provide flexibility and support capital management Program AProgram B Program C Corporate Layer 2Corporate Layer 1 CAT XOL Retained Quota Share Retained CAT XOLCAT XOL Quota ShareRetained ~250YR~300YR~143YR Corporate Programmatic AlternativeInuring Cat BondInuring FHCF
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Risk Tolerance Methodology Underpinned by Strict StandardsINVESTOR DAY 2025 56 Risk is evaluated across multiple frameworks Regulatory StandardsRating Agency PerspectiveInternal Risk Tolerances•Compliance with Risk-Based Capital (RBC) requirements•In line with statutory solvency expectations •Focus on AM Best Capital Adequacy Ratio (BCAR)•Evaluated at the 99.6% confidence level •Evaluates Occurrence and Aggregate Probable Maximum Loss (PML) targets•Benchmarked against internal capital adequacy thresholds
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Guy ZeltserChief Financial Officer
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119-121 420-450465-475 -55 9 Q3’22Q4’24Q4’24Prior Investor Day GuideActual Outperformed Prior Investor Day GuidanceINVESTOR DAY 2025 58 We have the insight and execution capabilities to provide achievable forecasts 202220252025Prior Investor Day GuideCurrent Forecast 400 515 56 As of Q4’24As of Q4’24Prior Investor Day GuideActuals Inorganic5710-4 Adjusted EBITDA $ MillionCash & Investments $ MillionRevenue Growth $ Million
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Aligning Key Financial MeasuresINVESTOR DAY 2025 59 Key financial metrics more accurately reflect the focus of an insurer with a portfolio of risk Top-line Growth and Scale Underwriting Profitability Bottom Line Profits Capital Efficiency Total Generated PremiumGross Written Premium Gross Loss RatioNet Loss Ratio Adjusted EBITDAAdjusted Net Income Adjusted Return On EquityNone
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Translating 2025 GuidanceINVESTOR DAY 2025 60 Gross Written Premium$1.05-$1.1B$1.15-$1.2B Net Loss Ratio72%-74%2 62%-64% Adjusted Net Income($10-$14M)3 $28-$32M Adjusted Return on Equity(3-4%) 8-9% Full-year 20251 Q2-Q4’25 Annualized 1.No change to guidance assumptions reported at Q1 earnings2.Impact of LA Fires- 13pp3.Impact of LA Fires- $45M
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8-9% 18%+ Performance Metrics In 2028EINVESTOR DAY 2025 61 Gross Written Premium$ MillionAdjusted Net Income$ MillionAdjusted Return on Equity% of total 20252028E 1,050-1,100 >2,000 28-32 >125 ~2x 2Q-4Q’252028EAnnualized2Q-4Q’252028EAnnualized ~4x
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Doubling Top-line Premium by 2028INVESTOR DAY 2025 62 Three-year growth assumptions are in-line with how the business is currently operating 2025 2028EGross Written PremiumOrganic Growth from Existing non-Hippo programsNew non-Hippo programsScale-up of New Homes channel within Hippo MGAHippo MGA outside New HomesGross Written Premium Organic growth at slightly lower pace than achieved historicallyAdding programs in similar pace to last few years, aiming to diversify the lines of businessGrowing organically with existing partners, bolstered by strategic partnerships Focusing Hippo MGA growth outside New Homes in diversified states where fewer new homes are built Key Drivers 1 2 3 4 1 2 3 4 Gross Written Premium$ Million 1,050-1,100 >2,00022%25-28E CAGR
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Similar Premium Retention And Net Loss Ratio Resulting In Doubling Underwriting Profit By 2028INVESTOR DAY 2025 63 Maintaining underwriting performance & retention will nearly double underwriting profit by 2028Net Loss RatioGross Written Premium RetentionUnderwriting Profit before Overhead ~2x $120-$125M >$220M 42% 62-64%60-65% 40-45% 2Q-4Q’252028EAnnualized 2Q-4Q’252028EAnnualizedUnderwriting profit is defined as revenue excluding NII less loss and lae and insurance related expense
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Increased Operating Leverage with ScaleINVESTOR DAY 2025 64 Scalable, technology-enabled platform, drives top-line growth well ahead of overhead expense investment 64 Key DriversGross Written Premium$ MillionOverhead Expense1$ Million 2025F2028E % of GWP 2025F2028E 1,050-1,100 >2,000 113-115140-145>22% +8% 11%7% ‘25-’28 CAGR‘25-’28 CAGR •Automation in customer support, claims handling•Infrastructure investments to allow adding new programs at minimal incremental cost•Optimizing geographic footprint in hiring 1.GAAP Sales & Marketing, Technology & Development, and General & Administrative, excluding non-cash items such as Stock Based Compensation, Depreciation & Amortization
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•Generate income with a conservatively positioned portfolio•Construct the portfolio to maintain liquidity and preserve capital•Future growth in investable asset base is expected to positively impact relative yield U.S. Gov't and Agency8%States and Territories3% Corporate Securities35% Residential MBS5%Commercial MBS2%ABS2% Short Term Investments45% Taking A Conservating Approach In Our Investment PortfolioINVESTOR DAY 2025 65 Average yield on portfolioAverage yield of new investments Average maturity Duration4.43%4.52%1.6 years1.4 years Investment Portfolio as of 3/31/25 Key Drivers
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Resulting in Strong Adjusted Net IncomeINVESTOR DAY 2025 66 2Q-4Q’25 Annualized-2028E Adj. Net Income$ Million 28-32 >125 •More diversified premium based across lines of business and geographies•More efficient and scalable overhead structure•More profitable and predictable 2Q-4Q’25Incremental UW profit driven by premium growthMaintain similar Investment Income YieldsEfficient Investment in Overhead Expense2028EAnnualized - Adjusted Net IncomeAdjusted Net Income Key Objectives
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Hippo’s Unique Capital StructureINVESTOR DAY 2025 67 The organization has been structured to optimize capital efficiency and access Unique capital structure with an MGA, captive reinsurer, and carrier More predictable future returns driven by a well-balanced portfolio Ability to leverage NOLs over the upcoming years
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Delivering Long-Term ValueINVESTOR DAY 2025 68 Driving value through focused and disciplined execution Strong Track Record of Execution Compelling and Achievable 2028 TargetsDelivering Improved Earnings at Lower Volatility•Grew revenue 3.5x •Delivered positive adjusted EBITDA •Exceeded 2022 Investor Day financial goals •Alignment of key metrics •>$2B Gross Written Premium•>$125M Adjusted Net Income•18%+ Adjusted Return on Equity •Differentiated products across MGA and Spinnaker platforms•Flexible risk management allows us to capitalize on natural market cycles
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Rick McCathronPresident & Chief Executive Officer
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Key Themes for TodayINVESTOR DAY 2025 70 Primed to Deliver Consistent Bottom Line Growth with an Attractive Return on Equity and Lower Volatility Business TransformationCompany VisionProven TeamDifferentiated ProductsOver the past three years, delivered on aggressive financial goals while diversifying our risk Building a platform to source diversified, positively selected risk to deliver high return on equity at lower volatility Talented, experienced insurance leaders want to work at HippoCompetitive advantages in both Spinnaker platform and our homeowners MGA, our right to winFlexible Risk ManagementTrack Record of ExecutionShareholder ValueFlexible business model that allows Hippo to capitalize on natural market cycles Consistently delivered on controllable guidance while reducing variability from cat events Driving shareholder value in the near- and long-term
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INVESTOR DAY 2025 Appendix 71
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Definition of Non-GAAP measures included in this presentationINVESTOR DAY 2025 72 •Adjusted EBITDA: We define adjusted EBITDA as net income (loss) attributable to Hippo excluding interest expense, income tax expense, depreciation, amortization, stock-based compensation, net investment income, restructuring charges, impairment expense, other non-cash fair market value adjustments, contingent consideration for one of our acquisitions, and other transactions, which may include certain legal fees and settlement costs, that we consider to be unique in nature.•Adjusted Net Income (Loss): We define adjusted net income (loss) as net income (loss) attributable to Hippo excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments which would be included in calculating our income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. We use adjusted net income (loss) as an internal performance measure in the management of our operations because we believe it gives our management and financial statement users useful insight into our results of operations and our underlying business performance. Adjusted net income (loss) does not reflect the overall profitably of our business and should not be viewed as a substitute for net income (loss) attributable to Hippo calculated in accordance with GAAP. Other companies may define adjusted net income (loss) differently.
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Definition of Non-GAAP measures included in this presentationINVESTOR DAY 2025 73 •Adjusted Return on Equity: We define Adjusted Return on Equityas adjusted net income (loss) expressed on an annualized basis as apercentage of average beginning and ending Hippo stockholders’ equity during the period. We use annualized adjusted return on equity as an internal performance measure in the management of our operations because we believe it gives our management and financial statement users useful insight into our results of operations and our underlying business performance. Annualized adjusted return on equity should not be viewed as a substitute for return on equity calculated using unadjusted GAAP numbers, and other companies may define adjusted return on equity differently.
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Reconciliation of non-GAAP measures used in this presentation INVESTOR DAY 2025 74 (in Millions) Q3'22FY 2023 Q4'24FY 2024 Net Income (Loss) attributable to Hippo$(129.2)$(273.1)$ 44.2 $(40.5)Net investment income(2.5)(23.1)(6.3)(24.4)Depreciation and amortization3.8 19.8 5.8 23.2 Stock-based compensation17.0 57.5 8.9 38.2 Fair value adjustments- 4.5 (0.5)1.7 Other one-off transactions0.5 7.8 2.4 7.9 Income taxes expense0.3 0.5 0.1 1.2 Gain on sale of business- - (46.1)(54.4)Impairment and restructuring charges55.3 5.5 - 3.6 Adjusted EBITDA$(54.8)$ (200.6)$8.5 $(43.5)
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Years Ended December 31, 2024SERVICESINSURANCE-AS-A-SERVICEHIPPO HOME INSURANCE PROGRAMTOTALRevenue from external customersNet earned premium$ - 63.5 209.0 272.5 Commission income, net32.5 24.1 4.0 60.6 Service and fee income0.6 - 11.0 11.6 Net investment income0.1 11.9 12.4 24.4 Intersegment revenue15.0 - - 15.0 Segment revenue48.2 99.5 236.4 384.1 Reconciliation of Revenue - Eliminations(1) (12.0)Total consolidated revenue 372.1 Less segment expenses:Loss and loss adjustment expense- 24.9 182.9 Insurance related expense- 31.1 48.1 Sales and marketing31.8 - 6.0 Technology and development10.6 0.3 12.6 General and administrative10.8 6.9 25.9 Other expenses- - - Less: Net investment income(0.1)(11.9)(12.4)Less: Noncontrolling interest(11.9)- - Segment adjusted operating income (loss)(17.0)24.4 (51.5)(44.0)Eliminations(1) 0.5 Consolidated adjusted operating income (loss)(43.5)Reconciliation of segment adjusted net income (loss)Net investment income 24.4 Depreciation and amortization(23.2)Stock-based compensation (38.2)Fair value adjustments (1.7)Other one-off transactions (7.9)Gain on sale of business 54.4 Impairment and restructuring charges(3.6)Noncontrolling interest 11.9 Loss before income taxes (27.4) Reconciliation of non-GAAP measures used in this presentation INVESTOR DAY 2025 751.Eliminations include commissions paid from Hippo Home Insurance Program for policies sold by the Company’s Services segment (revenue, cost, and other adjustments in respective business units eliminated as part of consolidation).
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Reconciliation of non-GAAP measures used in this presentation INVESTOR DAY 2025 761.Eliminations include commissions paid from Hippo Home Insurance Program for policies sold by the Company’s Services segment (revenue, cost, and other adjustments in respective business units eliminated as part of consolidation). Years Ended December 31, 2024SERVICESINSURANCE-AS-A-SERVICEHIPPO HOME INSURANCE PROGRAMTOTALRevenue from external customersNet earned premium$ - 42.9 64.6 107.5 Commission income, net23.9 19.8 7.3 51.0 Service and fee income0.5 0.3 14.9 15.7 Net investment income0.1 7.7 15.3 23.1 Intersegment revenue19.8 - - 19.8 Segment revenue44.3 70.7 102.1 217.1 Reconciliation of RevenueEliminations(1) (7.4)Total consolidated revenue 209.7 Less segment expenses:Loss and loss adjustment expense- 15.6 165.0 Insurance related expense- 22.8 37.9 Sales and marketing42.5 - 16.9 Technology and development16.6 0.5 17.2 General and administrative11.9 5.8 30.0 Other expenses0.7 - 0.1 Less: Net investment income(0.1)(7.7)(15.3)Less: Noncontrolling interest(10.1)- - Segment adjusted operating income (loss)(37.6)18.3 (180.3)(199.6)Eliminations(1) (1.0)Consolidated adjusted operating income (loss)(200.6)Reconciliation of segment adjusted net income (loss)Net investment income 23.1 Depreciation and amortization(19.8)Stock-based compensation (57.5)Fair value adjustments (4.5)Other one-off transactions (7.8)Impairment and restructuring charges(5.5)Noncontrolling interest 10.1 Loss before income taxes (262.5)
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Reconciliation of non-GAAP measures used in this presentation INVESTOR DAY 2025 771.Eliminations include commissions paid from Hippo Home Insurance Program for policies sold by the Company’s Services segment (revenue, cost, and other adjustments in respective business units eliminated as part of consolidation). Years Ended December 31, 2024SERVICESINSURANCE-AS-A-SERVICEHIPPO HOME INSURANCE PROGRAMTOTALRevenue from external customersNet earned premium$ - 22.5 20.0 42.5 Commission income, net16.7 11.4 25.0 53.1 Service and fee income0.9 - 13.0 13.9 Net investment income- 3.1 5.9 9.0 Intersegment revenue19.3 - - 19.3 Segment revenue36.9 37.0 63.9 137.8 Reconciliation of RevenueEliminations(1) (18.1)Total consolidated revenue 119.7 Less segment expenses:Loss and loss adjustment expense- 13.4 85.4 Insurance related expense- 10.5 53.1 Sales and marketing61.8 0.2 18.1 Technology and development6.8 - 29.7 General and administrative9.7 4.4 34.5 Other expenses0.7 - - Less: Net investment income- (3.1)(5.9)Less: Noncontrolling interest(6.9)- - Segment adjusted operating income (loss)(49.0)5.4 (162.8)(206.4)Eliminations(1) - Consolidated adjusted operating income (loss)(206.4)Reconciliation of segment adjusted net income (loss)Net investment income 9.0 Depreciation and amortization(15.2)Stock-based compensation (61.9)Fair value adjustments (0.1)Other one-off transactions (2.2)Impairment and restructuring charges(55.3)Noncontrolling interest 6.9 Loss before income taxes (325.2)