Home insurance group Hippo has narrowed its losses for 2023, as indicated in its letter to shareholders.
Here’s how Hippo performed in the quarter and year ended December 31:
|
Metric |
Q4 2023 |
Q4 2022 |
FY 2023 |
FY 2022 |
|---|---|---|---|---|
|
Total generated premium |
$268 million |
$233.4 million |
$1.1 billion |
$811.1 million |
|
Total revenue |
$64.5 million |
$35.8 million |
$209.7 million |
$119.7 million |
|
Net loss attributable to Hippo |
$42.3 million |
$63.1 million |
$273.1 million |
$333.4 million |
|
Adjusted EBITDA loss |
$22.3 million |
$47.3 million |
$200.6 million |
$206.4 million |
|
Gross loss ratio |
45% |
42% |
71% |
76% |
|
Net loss ratio |
80% |
222% |
169% |
$239% |
Adjusted EBITDA loss, as defined by the company, is net 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, and contingent consideration for one of its acquisitions and other transactions that Hippo considers to be unique in nature. Hippo excludes these items from the metric because it does not consider them to be directly attributable to Hippo’s underlying operating performance.
Commenting on the numbers, Hippo president and chief executive Rick McCathron said: “2023 was a transformational year for Hippo, highlighted by the expanded launch of our consumer agency, the continued growth and success of our insurance-as-a-service business, and decisive actions taken to reduce volatility in our Hippo home insurance program.
“We enter 2024 poised to go on offense, with streamlined operations ready to serve our core customer segments in our core markets, and with renewed confidence we will generate positive adjusted EBITDA in Q4.”
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