Hippo Holdings Inc.

Thank you for attending the HIPPO holding Q2 2021 earnings conference call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, Chris Maloney with HIPPO. Thank you. You may proceed.

Thank you, operator. Good afternoon, everybody, and thank you for joining HIPPO's second quarter 2021 earnings conference call. Earlier today, HIPPO issued a shareholder letter announcing its second quarter results, which is also available at investors.hippo.com. Leading today's discussion will be HIPPO's Chief Executive Officer, Asaf Wand, President Rick McCatherin, and Chief Financial Officer, Stuart Ellis. Following management's prepared remarks, we will open up the call to questions. Before we begin, I'd like to remind you that our discussion will contain predictions, expectations, forward-looking statements, and other information about our business. It is based on management's current expectations as of the date of this presentation. Forward-looking statements include, but are not limited to, HIPAA's expectations or predictions of financial and business performance and conditions and competitive and industry outlook. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause our actual results to differ materially from historical results and or from our forecast, including those set forth in HIPAA's Form 8K filed today. For more information, please refer to the risks, uncertainties, and other factors discussed in HIPAA's SEC filings. All cautionary statements that we make during this call are applicable to any forward-looking statements we make wherever they appear. You should carefully consider the risks and uncertainties and other factors discussed in HIPAA's SEC filings. Do not place undue reliance on forward-looking statements as HIPAA is under no obligation and expressly disclaims any responsibility for updating, altering, or otherwise revising any forward-looking statements, as a result of new information, future events, or otherwise, except as required by law. Running through some of the technicalities associated with the recent public listing event, the transaction was accounted for as a reverse recapitalization and re-invent technology partner Z will be treated as the acquired company for financial statement reporting purposes. HIPPO Holding Bank, prior to the business combination, was deemed that the predecessor in HIPPO after the business combination will be the successor SEC registrant, meaning that HIPPO's financial statements for periods prior to the confirmation of the business combination will be disclosed in HIPPO's future periodic reports. No goodwill or other intangible assets were recorded in accordance with GAAP. For more details, please see our filings with the SEC. Additionally, during this conference call, we will also refer to non-GAAP financial measures such as total generated premiums and adjusted EBITDA. Our GAAP results and description of our non-GAAP financial measures with a full reconciliation to GAAP can be found in the second quarter 2021 shareholder letter, which has been furnished to the SEC and available on our website. And with that, I'll turn the call over to Asaf Wand, CEO of HIPPO.

Thank you, Chris, and thank you all for joining us today. We are incredibly proud to report our Q2 financial results for the first time as a public company. This was a quarter that was not only reflective of what we told you we would do, it was reflective of who we are. Our Q2 performance showed people's growth strategy coming to life. We achieved 101% year-on-year growth in total generated premium during the second quarter, reaching $159 million. Our Q2 results demonstrate the power of the HIPPO platform and the power of HIPPO strategy. And I couldn't be prouder of the effort and determination of the HIPPO team that drives these results. Looking ahead, we have a growing visibility and confidence that we will not only meet the expectations we previously set for the year, but exceed them. Accordingly, we are increasing our full-year guidance for total generated premium from $544 million to $565 million. At HIPPO, we are transforming the home insurance market with fundamentally different experience that customers are rapidly embracing. The homeowner's policy from HIPPO is a better, more modern policy. The policy from HIPPO is customized and designed with the consumer in mind. The buy-in experience with HIPPO is technology-enabled to be the easiest policy purchase on the market. And HIPPO policies come with both smart home technology and a proactive partner to help you protect your home. And lastly, when God forbid something bad happens, the HIPPO team earns our customers' future business by being there for them with care, efficiency, and effectiveness in their time of need. This strategy has allowed us to continue to take share in this vast $110 billion market and to surpass half a billion dollars of total generated premiums in force at the end of Q2, a 96% increase over the past year. Although we are still at the beginning of our journey, our growth strategy is firing on all cylinders, and we believe we are trying to continue to sustain growth for the long term. And this is not just a vision. It is our mission. And it's not just incremental training that we deliver in Q2. We also continue to build an increasingly solid foundation for future growth. We expanded into new markets, we signed new partnerships, and we launched new products in the home vertical, continuing our work to build and scale the industry's first vertically integrated home protection platform. We executed on our geographic extension plan, launching our product in three new states, and we are on track to achieve our goal of 40 states by the end of 2021. We continue to strengthen our omni-channel distribution strategy by launching new distribution partnerships with two of the top 10 insurance carriers, a top 50 homebuilder, a top five loan originator, and two leading smart home providers. Further, we doubled our MGA underwriting capacity by signing partnerships with LI Financial and Incline PNC Group to serve as additional carrier, thus reducing the capital that would otherwise be needed to support our future goal. Finally, we launched two new products, Inspection Protection for home buyers to protect against issues missed during their home inspection process, and second, our first ever commercial product, offering insurance to homeowners associations in the 360,000 communities with HOAs across the U.S. In-home insurance, unlike in other lines, weather is one of the biggest drivers of short-term loss ratio. Therefore, a diversified portfolio of policies enables a more stabilized result. Expansion and diversification proceeds one state at a time as regulators approve new programs like EPO. Just like when you build a diversified portfolio of stocks to reduce volatility, as we expand into more states and diversify geographically, our loss ratio should become more and more consistent over time. In a very real way, the success of our dynamic growth strategy paved the way to reducing our long-term loss ratio and improving bottom-line profitability. Let me conclude by saying that the team at HIPPO is very pleased and proud to now be trading as a public company. While the form of our ownership has changed, the conviction and determination of our team has not. We are a growth-driven company that is determined to transform the home insurance business. We will offer EPO policies across the United States. We will drive growth and focus on bottom line metrics as we grow. We will carefully deploy the more than $900 million that we now have on our balance sheet to enhance our product offering and our growth in order to become a leader in this industry. As I noted earlier, home insurance is a vast $110 billion industry, and we have now cost $500 billion more. While this is a great milestone for the company, we are just beginning. Thank you, and let me now turn it over to our CFO, Stuart. Thanks, Asaf.