Hippo Holdings Inc.

Hello, everyone, and a warm welcome to the HIPPO Q2 2025 earnings call. My name is Emily, and I'll be coordinating your call today. After the presentation, you will have the opportunity to ask any questions, which you can do so by pressing Start, followed by the number 1 on your telephone keypad. I would now like to turn the call over to Mark Olson, Director of Corporate Communications, to begin. Please go ahead.

Thank you, operator. Good morning and thank you for joining HIPPO's 2025 Second Quarter Earnings Call. Earlier today, HIPPO issued a shareholder letter announcing its Q2 2025 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 Guy Zelzer. Following management's prepared remarks, we will 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, IFO's expectations or predictions of financial and business performance and conditions and competitive and industry outlook. Forward-looking statements are subject to risk uncertainties, and other factors that could cause our actual results to differ materially from our historical results and or from our forecast, including those set forth in HIPAA's Form 10-Q filed today. 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 10-Q. 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 findings. 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 adjusted net income 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 2025 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. Good morning, everyone. Thank you for joining us. The second quarter marked a pivotal milestone for HIPAA, a proud moment that reflects the dedication, hard work, and steady progress we've made over the past several quarters. We unveiled our exciting long-term strategic plan at our Investor Day in New York City and announced a new transformative partnership that will accelerate our strategy. This quarter underscores our ability to deliver significant incremental improvements across the core drivers of value in our business. The strategic plan we presented to investors and analysts is designed to deliver superior returns on capital and is anchored in three powerful pillars. Strategic diversification. We are actively diversifying our premium base across both personal and commercial lines, while also broadening our reach across the insurance value chain by leveraging Hippo's hybrid front-end carrier. Unlocking market growth. We are poised to capitalize on the robust long-term growth trajectory within the home insurance market through our own managing general agency, HIPPO Home Insurance. This program offers a differentiated technology-driven customer experience that sets us apart. Optimize risk management. We're leveraging our diverse portfolio and risk management capabilities to intelligently optimize our business across market cycles. This involves iteratively adjusting pricing coverages and the degree and nature of risk participation across different lines of business to maximize returns. The strategic partnership announced at our investor day with the Baldwin Group is set to supercharge the momentum across all three of our strategic pillars. Program premium growth and diversification. TIPO's hybrid front-end carrier will build upon its decade-long support of Baldwin's MSI renters and MSI homeowners programs, extending capacity to a broader spectrum of Baldwin's MGA programs. This move is set to accelerate premium growth and enable faster diversification across lines of business. Tripoli market access. will now distribute our newly built homeowner's product through Baldwin's industry-leading Westwood Insurance Agency, which partners with 20 of the top 25 homebuilders in the U.S. This collaboration significantly expands our reach, tripling access to new home closings and fueling both premium growth and geographic diversification, strengthening financial position, We closed the deal to transfer our home builder assets to the Baldwin Group for $100 million in Q3. The additional capital will directly fuel our long-term strategy of building a well-balanced portfolio of insurance risks that delivers a superior return on capital. Beyond these significant corporate developments, our internal teams remain laser focused on operational efficiency, execution, and excellence throughout the quarter. We welcome two key MGA partners to our platform, further diversifying our premium within commercial and casualty lines, while also expanding additional lines of business with current partners. As we mentioned during Investor Day, our risk participation when launching new programs is low. As we gain more experience with each program, we'll consider increasing our risk participation, if doing so enhances our return on equity. Crucially, while expanding our top line remains core to our strategy, we did not compromise on underwriting profitability. Thanks to earlier underwriting and rate actions, along with improved claims operations, we achieved a consolidated net loss ratio of 47% in Q2, supported by favorable reserve developments across multiple lines of business. This quarter also powerfully demonstrated the scalability of our platform. While we grew revenue by more than 30% year over year, fixed expenses decreased by 16% over that same period. Our improved operating leverage is a key driver of value, enabling us to deliver robust revenue growth while maintaining underwriting discipline and controlling expenses. Our diligent execution of our strategic go-forward plan in the second quarter led to a substantial improvement in profitability year over year, culminating in a critical milestone. HIPPO posted positive net income from operating activities for the very first time. This truly outstanding quarter for HIPPO would not have been possible without the extraordinary hard work, focus, and collaborative spirit of the entire team and the unwavering support of our valued partners. I'm immensely proud of all we achieved in Q2 and eagerly look forward to building on this powerful momentum throughout the rest of 2025 and well into the future. Now, I'd like to turn the call over to our Chief Financial Officer, Guy Zeltser, to walk through the highlights of our second quarter financial results, as well as our expectations for the remainder of 2025.