Home insurance group Hippo has revealed its 2024 revenue hit $372 million, up a massive 77% from 2023.
In Q4 2024 alone, Hippo’s revenue increased by 58% to $102 million, while net income attributable to the firm was $44 million, compared to a net loss of $42 million in Q4 2023.
Meanwhile, cash and investments, excluding restricted cash, increased $25 million quarter over quarter to $571 million.
Hippo President and CEO Rick McCathron continued, “Hippo delivered $8.5 million in positive adjusted EBITDA in Q4 2024, surpassing all expectations.
“A nearly 30-point improvement in our gross loss ratio in 2024 and the further streamlining of our operations contributed to our most successful year to date.
“We accomplished all of this while nearly doubling our revenue, and our focus is now on turning net income profitable by Q4 2025.”
As we covered earlier today, Hippo’s preliminary pre-tax estimate of catastrophe losses from the wildfires in Los Angeles in January, including assessments from the California FAIR Plan and net of subrogation, is approximately $42 million.
According to the firm, $30 million of this total is attributed to the Hippo Home Insurance Program and $12 million is related to non-Hippo programs supported by Spinnaker.
Hippo has signed an agreement to sell its subrogation rights specific to losses from the Eaton outbreak, which the firm expects to result in gross savings of approximately $15 million and $11 million on a net basis, which is included in the above loss estimate.
McCathron continued, “As a native of Southern California, these events are deeply personal to me. I am proud of Hippo’s quick and compassionate response—arranging temporary housing, offering accelerated payouts, and collaborating with our builder partners to find ways to shorten the rebuilding process.”
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