Hippo Holdings Inc.

Ladies and gentlemen, welcome to the Hippo Holdings first quarter earnings call. My name is Betsy and I will be moderating your call today. If you would like to ask a question during the presentation, you may do so by pressing star one on your telephone keypad. If you are streaming via a web browser, kindly press the Q&A button and type in your question. I will now hand you over to your host, Mark Olson from Hippo Holdings to begin. Mark, please go ahead.

Thank you, Operator. Good morning, and thank you for joining HIPPO's 2024 First Quarter Earnings Call. Earlier today, HIPPO issued a shareholder letter announcing its Q1 results, which is available at investors.hippo.com. Leading today's discussion will be HIPPO President and Chief Executive Officer Rick McCatherin and Chief Financial Officer Stuart Ellis. Following management's prepared remarks, we will open the call to questions. Before we begin, we'd like to remind you that our discussion will contain predictions, expectations, forward-looking statements, and other information about our business that are 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 HIPPO's Form 10-Q filed today. For more information, please refer to the risks, uncertainties, and other factors discussed in HIPPO's SEC filings, in particular the section entitled Risk Factors. All cautionary statements 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 HIPPO'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, offering, 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 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 full reconciliation to GAAP can be found in the first quarter 2024 shareholder letter, which has been furnished to the SEC and is available on our website. And with that, I'll turn the call over to Rick McCatherin, our president and CEO.

Thank you, Mark, and good morning, everyone. We started off the new year on the right foot, building on the momentum gained during a transformative 2023 and are on track to achieve the 2024 I'm particularly excited to share that during Q1, we were able to continue reducing our cap exposure and streamlining our operations without sacrificing overall growth. In fact, we accelerated top-line growth compared to last quarter. I mentioned previously that we've been focused on meeting our customers' needs with third-party policies while reducing our HIPPO home insurance program exposure in areas where we have a lower risk appetite. Our team's efforts to find the right policy for each customer, regardless of carrier, have allowed us to maintain high retention rates during this effort. Our success helped drive accelerated total generated premium growth in Q1 relative to last quarter. I expect this growth to accelerate further towards the end of the year as the benefit of reopening certain geographies and the expansion of our builder business overtake the short-term growth impact of reducing cat exposure. Without the effort to rebalance our geographical exposure, our top line could have been even higher, but these efforts are already improving underwriting results and our bottom line. No home insurance company will ever be immune from weather, and like others, we experienced losses in March of this year from a large hail storm that affected Texas and Missouri. Because of our ongoing efforts to reduce policy counts in these areas and to increase deductibles that further reduce our exposure, we estimate the direct losses from this event will be approximately 43% lower than what we would have experienced if the exact same event had occurred in March 2023. This is solid progress in a relatively short period of time. And like we discussed last quarter, we feel confident year, after the changes work their way fully through our book, the reduction in expected losses will even be higher. Finally, towards the end of last year, we took aggressive actions to lower costs and drive efficiencies into our operations. We're now realizing the full benefits of these cost reductions in our Q1 financials. And those improvements contributed to our progress in reducing our adjusted EBITDA loss during the quarter. even though Q1 had seasonally higher weather-related losses than Q4 last year. The critical work that started in 2023 has continued into 2024, and our results from Q1 add to the growing evidence of our ability to efficiently grow our business while marching towards positive adjusted EBITDA. Our teams have worked hard during the quarter. I'm encouraged by the progress and excited to report that there's more to come. Now, I'd like to turn the call over to our Chief Financial Officer, Stuart Ellis, to walk through the highlights of our Q1 2024 financial results, as well as our expectations for the future.