Hippo Holdings Inc.

Ladies and gentlemen, welcome to the HIPAA Holdings second quarter 2024 earnings call. My name is Ada, and I will be coordinating your call today. If you would like to ask a question during the presentation, you may do so by pressing star followed by one on your telephone keypad. I will now hand you over to Mark Olson to begin. Please go ahead.

Thank you, operator. Good morning, and thank you for joining HIPAA's 2024 second quarter earnings call. Earlier today, HIPPO issued a shareholder letter announcing its Q2 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'll open up 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 HIPAA's Form 10-Q filed today and our Form 10-K filed earlier this year. For more information, please refer to the risks and uncertainties and other factors discussed in HIPAA's SEC filings in particular in the section entitled Risk Factors in our Form 10Qs and Form 10K. 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 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, 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 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 full reconciliation to GAAP can be found in the second 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 McCathern, our president and CEO.

Thank you, Mark. And good morning, everyone. We have added to the momentum we created over the past year and delivered an improved second quarter of 2024. Our plan to reduce the volatility in our homeowners program passed its first meaningful test as we delivered a substantial year-over-year reduction in catastrophic losses despite the broader industry suffering another quarter of elevated severe weather. Beyond this, we continue to leverage our proprietary technology to further improve the efficiency of our operations, resulting in increased customer lifetime value and lower customer acquisition costs. In parallel with these efforts, we delivered another quarter of strong top-line growth and doubled down on our new homes channel, where we are improving access to insurance for consumers purchasing new homes with some of the country's largest home builders. The second quarter presented the best opportunity yet for HIPAA to showcase the benefits from the work we have been doing to reduce our business exposure to wind and hail event. Compared to the second quarter of last year and excluding the positive benefits from favorable reserve development, we improved our PCS CAT weather loss ratio by 83 percentage points and reduced our weather-related loss dollars by 73%. This improvement was enabled by our technology, which has been fundamental to our team's ability to plan and rapidly execute the needed changes to our program. The impact of these changes will continue to earn through our results over the next three quarters. We believe we are fast approaching the time when losses from severe convective storms will no longer be the primary driver of our bottom line financial results. In my last letter, I talked about the role our agency plays in finding a policy for every customer, whether or not we are the carrier. the ability to place customers with other carriers as an agency has allowed us to maintain high retention rates and to drive continued total generated premium growth while focusing on managing our exposure to high CAT geographies. Our agency also significantly contributes to improved customer satisfaction in our premium growth through personalized cross-selling opportunities of complementary products offered by other carriers like earthquake, flood, auto, umbrella, and more. Beyond the benefits to our customers, there are also significant benefits to our productivity and cost structure. In the second quarter, we realized a 60% year over year increase in agent productivity, a 17% year over year increase in our lead conversion rate, and a 23% year over year increase and our cross-sell rate, allowing us to grow our top line while driving additional operating leverage. All of the efforts we have focused on this past year are now bearing fruit. Our business now has inherently less exposure to wind and hail, is growing more quickly because we are better meeting our customers' needs, and is operating in a more efficient and cost-effective manner. We remain confident that we can achieve our long stated goal of positive adjusted EBITDA by the end of this year. I cannot be prouder of the work our team has accomplished this past quarter and look forward to sharing more of the benefits of their work with you in future quarters. Now, I'd like to turn the call over to our Chief Financial Officer, Stuart Ellis, to walk through the highlights of our Q2 2024 financial results, as well as our expectations for the future.