Hippo Holdings Inc.

Good morning all, good afternoon all, and welcome to the HIPPO fourth quarter 25 earnings call. My name is Adam and I'll be your operator today. If you'd like to ask a question during the Q&A portion of today's call, you may do so by pressing star followed by one on your telephone keypad. I will now hand the floor to Charles Sebastian to begin. So Charles, please go ahead when you are ready.

Thank you, operator. Good morning and thank you for joining HIPPO's fourth quarter 2025 earnings call. Earlier today, HIPPO issued an earnings release announcing its fourth quarter and full year 2025 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, Greg McCatherin, and Chief Financial Officer, Guy Zeltzer. Following management's prepared remarks, we will open the call for 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-K. 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 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 our fourth quarter 2025 earnings release, which has been furnished to the FCC and is available on our website. And with that, I'll turn the call over to Rick McCatherin, our president and CEO.

Thank you, Chuck, and good morning, everyone. Thank you for joining us. Once again, I am pleased to report that HIPAA delivered a very strong performance in 2025, continuing to advance and strengthen our business, building on our technology-native insurance platform. For the year, we generated over $1.1 billion of gross written premium for the first time, an increase of 24%, and we're just getting started. Net written premium for the year of $422 million was up 13%. This growth was achieved while improving our combined ratio by 25 percentage points, helping deliver net income of $58 million for the year. These results underscore the strength of our model and our ability to drive consistent improvements across the core drivers of our business. Guy will discuss more details when he reviews the financials later. We entered 2026 with positive momentum and increased confidence in achieving and exceeding our 2028 targets of over $2 billion in gross written premium, $125 million of adjusted net income, and an 18% adjusted return on equity by the end of 2028. Our continued evolution aligns squarely with the three strategic pillars that guide our business and position HIPPO for long-term profitable growth. Strategic diversification. We continue to broaden our premium base across both personal and commercial lines. building a more balanced and profitable portfolio. Unlocking market growth. Our programs deliver a differentiated, technology-driven customer experience that sets HIPPO apart and expands our reach into attractive markets. Optimized for risk management. We are leveraging our diversified portfolio and deep risk management capabilities to continuously optimize performance across market cycles. Now, I'd like to provide updates on our main lines of business. First, in homeowners, our largest and original line of business. For 2025, we wrote $379 million of gross written premium down approximately 10% from the prior year as we prioritize profitability over growth given the heightened competition in ENS. However, we believe the line performed well, having achieved an average renewal premium increase of approximately 15% in our HHIP business, which we now view as rate adequate. Consequently, we've turned the corner in homeowners and expect this business to return to growth again in 2026, driven by two key developments. First, through our Baldwin partnership, we are now actively quoting business with more than 50 homebuilders nationwide, up from six prior to the sale of our homebuilder distribution network. Second, following the completion of improvements to our homeowner's product outside the builder channel, which included an advanced rate filing process, revised terms and conditions, and improved claims handling, I am pleased to report that we have relaunched writing traditional new policies with selected partners. Turning to our renter's business, which produced $175 million gross written premium for the year, a 19% increase year over year, As one of Hippo's most seasoned programs, it continues to grow while maintaining attractive profitability. We are pleased to support this program and its continued innovation in the renter's market. Now turning to our most diversified portfolio of risk, our commercial lines business. Commercial multi-parallel delivered a very strong year of growth, increasing 75% over 2024 to $265 million of gross written premium. making it our second largest line of business after homeowners. Fundamental to our program strategy is supporting programs we know well or have had a long track record of performance, and this is exactly where this year's growth originated. Specifically, programs with five years operating histories and consistently attractive underwriting results. Our casualty business experienced even faster growth, increasing 92% to an end of year with $264 million of gross written premium, just slightly behind commercial multi-parallel. Importantly, this growth came from a well-diversified group of programs with relatively modest limits profiles. Consistent with our strategy of supporting long tenured programs, our risk retention levels in casualty was only 3% for 2025. However, These programs were well supported by the reinsurance market, and as we continue to deepen those partnerships, we expect to increase our retention levels over time. Given the growth in our partner program business, we wanted to provide additional insight into how we manage this platform, which is likely a bit more engaged than some may realize. When launching new lines of business with program partners, we follow a rigorous diligence process. Together, we established the underwriting guidelines the program will operate under, an approach we believe is critical to our long-term success. For instance, over 70% of our liability policies have limits under $300,000, and our portfolio has an average liability duration of approximately two years, which is generally considered short tail exposure. We remain highly engaged with our program partners through the underwriting and claims, once new programs are operational. For example, if a program wants to write a policy that falls outside of its established underwriting guidelines, it must request an exception. Today, we are well under 1% of quotes requiring such an exception. Claims management is also critical to underwriting outcomes, and we are actively involved in that process as well. We set claims authority limits on third-party administrators and proactively review claims that approach those thresholds. Today, our claims team reviews more than 800 files per month. While we currently have 38 programs in operation, not all have performed as initially expected. In those cases, we will place a program into runoff to protect the overall underwriting performance. I am very pleased with how our team has managed the program business, driving growth, maintaining oversight, and exiting when necessary. This disciplined approach is clearly evidenced by our 54% gross loss ratio in 2025, which includes the impact of the severe California wildfires in early 2025. Overall, I'm very pleased with HIPAA's position today and confident in our prospects for 2026 and beyond. Now, I'd like to turn the call over to our Chief Financial Officer, Guy Seltzer, to walk through the highlights of our fourth quarter and 2025 financial results and our expectations for 2026.