US-based home insurance group Hippo has announced the completion of its 2024 reinsurance program.
As part of the program, Hippo has purchased significantly less proportional reinsurance in 2024.
The decision to retain more premium from the Hippo Home Insurance Program and associated non-catastrophe attritional losses on its balance sheet is based on the expectation of continued improvement in the attritional loss ratio and Hippo’s measures to reduce volatility, the company said.
Hippo has expanded its purchase of non-proportional Excess-of-Loss (XOL) reinsurance. The company has increased its per-occurrence XOL limit by 11% and broadened its reinsurer base from 14 to 19 participants.
“Our reinsurance partners have affirmed their confidence in our business with improved terms for the second year in a row,” Hippo CEO and president Rick McCathron said. “Our efforts to reduce exposure to weather-related volatility in our business, combined with our proactive approach to home protection, has continued to drive significant improvements in loss ratio, making the Hippo Home Insurance Program attractive to reinsurers, many of whom have been with us for multiple years.”
Further details regarding the reinsurance placement will be disclosed in Hippo's fourth-quarter 2023 earnings report scheduled for March 6, 2024, and in the company's 2023 annual report.
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