Hippo Holdings Inc.

Hello and welcome to today's Hippo first quarter 2022 earnings call. My name is Bailey and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star followed by one on your telephone keypad. I would now like to pass the conference over to Cliff Gallant, Investor Relations. Cliff, please go ahead.

Thank you, operator. Good morning, everybody, and thank you for joining HIPPO's first quarter earnings conference call. Earlier this morning, HIPPO issued a shareholder letter announcing its first quarter results, which is also available at investors.hippo.com. Leading today's discussions will be HIPPO's Chief Executive Officer, Asaf Wan, 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 that is based on management's current expectations as of the date of this presentation. Forward-looking statements include, but are not limited to, people's expectations or predictions of financial and business performance and conditions and competitive and industry outlooks. Forward-looking statements are subject to risks, uncertainties, and other factors that will cause our actual results to differ materially from historical results and or from our forecast, including those set forth in HIPAA's Form 8K file 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 whenever 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, and FIPO is under no obligation and expressly disclaims any responsibility for updating, altering, or otherwise revising any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. During this conference call, we will also refer to non-GAAP financial measures, such as total generated premium 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 first quarter 2022 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 Juan, co-founder and CEO of HIPAA. Thank you, Keith.

We are pleased to report that HIPAA has had a successful start to 2022. Continuous improvement is a hallmark of the HIPAA culture, and over the past year, the focus of our efforts has been on the gross loss ratio. And for the first quarter, we are reporting our best loss ratio as a public company, while growth remains robust and on track with our full-year target. We also believe the quality of our products and services continues to get better. The outlook is bright. Total generated premium grew 25% over the prior year quarter. Our state expansion efforts are gaining momentum as recently licensed states begin to produce volume. We launched in New York in late April, and we're expecting other states in coming months. We believe our customer satisfaction and word-of-mouth reputation remains strong with HIPAA homeowners premium retention at 87%. We continue to expect full-year PGP in the $800 to $820 million range. Our homebuilder business is our fastest-growing and most profitable channel. When we partner with a homebuilder, like we did with Lenal in 2019, we have proven our ability to materially increase insurance attachment rate, driving volume and better customer outcome for our partners. We did this by deeply integrating into the home buying process and offering an insurance policy tailored for the needs of new home buyers. We believe that as the market recognizes that HIPAA delivers a better experience for both builders and their customers, our builder network will further expand. A gross loss ratio of 76% is our best since we became a public company. While Q1 is traditionally a milder weather quarter, we're very pleased with the progress. particularly compared to last year where we encountered winter storm Yuri. We remain confident in our previous guidance of significant improvement over our full year 2021 results. We achieved a loss ratio despite the inclusion of 19 points of catastrophe loss event stemming from winter storms across the US. As we add greater geographic balance and scale to our book of business, the impact of individual events should lessen. The additions of New York and other states will add significantly to this balance. We continue to refine our pricing and underwriting models to appropriately match price to risk and improve our ability to identify and track the type of homeowners who are particularly well-suited to our product. Our best customers are homeowners who embrace proactive home protection and are willing to use technology to make their homes safer and easier to manage. Looking ahead, we expect that the actions we've already taken, including more advanced pricing and segmentation and better geographic balance, will have favorable impacts on the loss ratio. In addition, we are beginning to identify and execute upon other areas for further improvement. For example, our new claims leadership is leveraging technology to improve customer experience while reducing loss expenses and improving operational efficiency. We're excited to be returning to the office. We've opened and expanded our office locations to include Oakland and a larger space in Austin. Despite this challenging hiring environment, our staff count rose to 645. We're pleased with the progress we're reporting today, but even more excited by the progress to come. We are planning an investor day on September 6th in New York City, and we'd love to have you come by to meet our leadership team in person and learn more about our plans to deliver growing values to our customers and shareholders. I'd like now to pass it to Rick, our president.