Hippo Holdings Inc.

Hello everyone. Thank you for joining us and welcome to the Hippo Holdings Inc. second quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Charles Sebaski, Investor Relations. Charles, please go ahead.

Good morning and thank you for joining HIPPO's second quarter 2026 earnings call. Earlier today, HIPPO issued an earnings release announcing its Q2 results and a financial results presentation, which will be webcast during today's call, both of which are available at investors.hippo.com. Leading today's discussion will be HIPPO President and Chief Executive Officer Rick McCathron and Chief Financial Officer Guy Zeltser. 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, 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 our forecasts, including those set forth in HIPPO's Form 10-Q and 10-K. For more information, please refer to the risks, uncertainties, and other factors discussed in HIPPO's SEC filings, in particular, in the section entitled Risk Factors in our Form 10-Q and 10-K. 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 adjusted net income. Our GAAP results and description of our non-GAAP financial measures with full reconciliation to GAAP can be found in the second quarter 2026 earnings release, which has been furnished to the SEC and is available on our website. And with that, I'll turn the call over to Rick McCathron, our president and CEO.

Thank you, Chuck, and good morning, everyone. Thanks for joining us. HIPPO delivered another strong quarter, building on the momentum we started the year with. We grew top and bottom line together, making our fifth straight quarter of profitability on both a stated and adjusted basis. For the quarter, we generated $10 million of net income, a nearly eightfold increase over last year, and $21 million of adjusted net income, a 24% increase over second quarter last year. Growth written premium came in at 482 million, up 61% over last year, led by the continued expansion of existing program partners in our casualty and CMP lines of business and a return to growth in our homeowners line. However, what stands out most isn't the growth itself, it's that we grew profitably. Our combined ratio improved four percentage points year over year to 95.8% and we're at 97.5% year to date, a 31 percentage point improvement over the first half of 2025. That combination, growth and underwriting discipline moving in lockstep, is the story of the quarter. Let's walk through it in more detail. In homeowners, we wrote $107 million of premium, up 7% over last year. Growth continues to come from our Progressive and Westwood partnerships, with admitted growth more than offsetting the pullback in E&S as the market becomes more competitive. Rate remains adequate, with mid to high single-digit renewal rates this quarter, though we expect rate trend to moderate from here but to keep pace with loss trends. We want this business to grow, but only where we believe there's a high likelihood of profitability. Commercial Multi-Peril had another strong quarter, up 65% over last year to $138 million, now following Casualty as our second largest line on a gross basis, and second largest on a net written basis behind homeowners. Retention increased to 37%, impacted by a reinsurance structure change. However, we expect retention to return to more historic levels in the low 20s for the year. Casualty was our fastest growing line again this quarter with gross written premium up sharply to $180 million, now our largest line on a gross basis, though third on a net basis. That growth continues to be led by one of our longest tenured partners, a program with a multi-decade track record, which is exactly the kind of program we want to drive growth, one we know well. As we said last quarter, We're starting to lean into higher retention in casualty, and this quarter's uptick reflects both a new excess program and a reinsurance change with an existing partner. We expect retention to settle back into the mid-teens from here. We achieved this growth in a competitive market because we believe we've built the program carrier of choice in the MGA space. We now have more than 50 programs, double what we had in the first quarter of last year. and most of that growth is coming from existing partners expanding with us, not just new logos. Our longest tenured partner has been with HIPPO for over a decade. We keep investing in the platform, capacity and technology to support that partner program growth such as fully automated monthly data ingestion process, shortening the border row integration from new programs by 90% and reflecting back real-time insights to programs. We have continuously been focused on improving our underwriting and over the last several years that has included over 200 rate filings and over a 100% aggregate rate increase to HHIP. To support our program underwriting, we now have two program managers overseeing every program and three on our fastest growing casualty programs. All of this work shows up in our underwriting results. Accident Year, We renewed our cap bond, on attractive terms and added wildfire as a named peril. More importantly, we moved to buying catastrophic reinsurance at the corporate group level rather than program by program, which lowered our PMLs by more than 30% across the return periods that matter most to earnings volatility. We also introduced our first whole account quoted share across the portfolio, giving us more optionality as we build a track record managing risks at the enterprise level. Put simply, this reduces our volatility, improves our economics, and gives our partners more room to grow. And those goals reinforce each other. Scale and expense discipline are doing what we said it would. Our net expense ratio came in at 45.4%, down nearly 26 points from where we started 2024. As operating leverage continues to build, During that same period, our fixed expense ratio dropped by 39 points to 29%. AI continues to move from experiment to infrastructure across our business. Hannah, our AI service agent, and Clara, our AI first notice of loss agent, are both live this quarter. And together, they're a big part of why we can grow the top line without growing overhead at the same pace. We've also rolled out Devon, Cognition's AI software engineer across our tech organization, nearly a third of our roughly 500 employees. Tech is core to Hippo's value proposition, and this is about making our best people even better at building it. Our tech native roots also show up in how fast we move. Our full integration with Westwood and our accelerated launch with Progressive are both proof points and we believe both have plenty of runway left. We'll keep investing here because we believe a unique and targeted distribution model is an opportunity to further differentiate our business. Given everything this quarter, I want to remind everybody what we told investors at last June's Investor Day, that by 2028, we'd reach at least $2 billion of gross written premium, a 22% CAGR through organic growth New programs scaling our builder channel and relaunching homeowners outside of builders. So how are we doing against that? Over the last year, we've simultaneously added 14 new programs, completed our Westwood integration, now quoting more than 50 builders, and launched our progressive partnership, accelerating homeowners growth outside the builder channel. Additionally, this quarter, We significantly advanced our business partnerships, which now brings our expected 2027 premium above 2 billion, hitting our prior 2028 goal a year early. That's real progress against all four drivers we laid out. Given that momentum, we're raising the bar. Gross written premium to more than 2.5 billion, a 25% increase over our prior target. representing a 32% compounded annual growth rate and adjusted net income of more than $140 million in 2028, doubling our current year 2026 guidance. I'm proud of this quarter and even more excited about where HIPPO is heading. We're executing with discipline against our long-term goals, and the progress we're seeing gives me real confidence in what's ahead. Now, I'll turn it over to our CFO, Guy Zeltser, to walk through the numbers in detail, and then we'll take your questions.