Hippo reported a net loss per share of USD 5.66 in Q3 2022, falling short of analyst estimates of a USD 2.87 loss per share. Net loss attributable to Hippo declined 318.1% YoY to USD 129.2 million compared to a loss of USD 30.9 million over the same period last year.

The company’s gross loss ratio improved by 18 percentage points to 110% during the quarter, compared to 128% last year. Excluding the impact of Hurricane Ian, its gross loss ratio is reported to be 58%, benefitting from its continuous improvement in re-underwriting efforts during the first half of the year.

Hippo’s total generated premiums (TGP; which include gross written premiums and gross placed premiums) amounted to USD 219.3 million in Q3 2022, 35.6% higher than the premiums generated over the same period last year, while net earned premiums during the quarter decreased marginally by 1.8% YoY to USD 10.7 million. 

The increase in TGP is primarily due to the improvement in its Builder business (insurance for newly built homes), which accounted for 26% of total Hippo and agency premiums in the quarter and nearly half of its new business. As of September 2022, Hippo had 332,000 customers and claims 75% of new customers were Gen B.

Hippo maintained its guidance for the full year of FY2022 and expects TGP to be in the range of USD 790 million–810 million, implying growth of 30.3%–32.6% YoY. The company also expects to achieve a gross loss ratio below 90% compared to 138% in FY2021.

In addition, the company expects to launch the “Book a Pro” feature within its mobile app in Q4 2022, which allows homeowners based in Texas to connect to home improvement professionals as well as message its own home care experts to get advice. It also aims to aggressively roll out this feature to other geographies.