Hippo Holdings Inc.

Hello and welcome to the HIPAA Holdings Third Quarter 2024 Earnings Call. My name is Maxine and I'll be coordinating the call today. If you would like to ask a question, you may do so by pressing star followed by 1 on your telephone keypad. I will now hand you over to Mark Olson, Director of Communications, to begin. Mark, please go ahead when you're ready.

Thank you, Operator. Good morning and thank you for joining HIPAA's 2024 Third Quarter Earnings Call. Earlier today, HIPPO issued a shareholder letter announcing its Q3 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 up the call to questions. Before we begin, we would 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, 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 HIPPO is under no obligation and expressly disclaims any responsibility for updating, offering, or otherwise revising any forward-looking statements, whether as the 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 the description of our non-GAAP financial measures with a full reconciliation to GAAP can be found in the third quarter 2024 shareholder letter, which has been furnished to the SEC and is available on our website. And with that, I will turn the call over to Rick McCatherin, our president and CEO.

Thank you, Mark, and good morning, everyone. For the third quarter of 2024, we continued the positive momentum we've been building over the course of the year and made a significant step forward on our path to profitability. We also strengthened the foundation for growth in our new homes channel. During the quarter, top line premium and revenue continued to grow quickly while we posted a HIPPO best ever year over year improvement in our HHIP non-weather loss ratio. Our PCS loss results came in at expected levels despite an active hurricane season. And we delivered another quarter of improved operating leverage as the investments we've made to streamline our operations continue to pay off. As we've discussed previously, we believe we have the best platform to help buyers of newly built homes secure cost-effective insurance quickly and easily beyond the benefits to consumers Hippo's New Homes program provides homebuilders access to a scalable, embedded insurance solution that streamlines the closing process for sales teams, lenders, and homebuyers by automating the evidence of insurance process. In Q3, we expanded homebuilder access to the program in California, Florida, and Texas, welcoming new builders Perry Homes and Vandale to our roster of builder partners with more additions to come in Q4. By year's end, we expect to be in a position to provide access to insurance for almost 50,000 new homes annually in these states through both our HIPPO program and our panel of carrier partners. After the close of the quarter, HIPPO sold a majority stake in its independent agent platform First Connect Insurance Services to Centana Growth Partners for approximately $48 million. with the opportunity to earn additional proceeds of up to 12 million if First Connect achieves certain performance targets. This transaction allows us to further increase focus on our core business while simultaneously freeing up First Connect to increase its level of investment to fulfill its potential as the premier independent agent distribution channel for carriers and MGAs. HIPAA will continue to be an enthusiastic customer, carrier partner, and a minority shareholder in First Connect. The proceeds from the transaction further strengthen our cash position, and we have taken this as an opportunity to repurchase and retire some of our own shares. Over the past couple of years, we've been striking a balance between improving our efficiency and investing in our business to support future growth. The work our team has been doing is increasingly visible in our financial results, and I'm optimistic about what is 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 Q3 2024 financial results, as well as our expectations for the future.