Homeowners Insurance Market Opportunity
Transaction Summary
Key Highlights
Approximately $5B enterprise value
4.4x 2023E Total Written Premium or 25.1x 2023E Adjusted Gross Profit
Hippo stockholders retain ~87% in pro forma ownership
Hippo receives $638M in primary proceeds to fund growth
Sources
Uses
Cash proceeds to Hippo
$638
Seller rollover equity
$5,422
Equity consideration to
$5,422
existing Hippo Shareholders
PIPE investment
$550
Cash consideration to existing
Hippo shareholders
$100
Reinvent cash held in trust
$230
Estimated transaction costs
$42
Hippo management will continue to operate the business post-closing
Total sources
$6,202
Total uses
$6,202
Transaction expected to close in Q2 2021
1.
2.
Pro forma valuation
$MM, unless otherwise noted
Pro forma ownership
at closing
Share price
$10.00
4%
87%
Pro forma shares outstanding¹
Pro forma equity value
621.6
SPAC public holders
$6,216
Existing company
shareholders
Less: Pro forma net cash²
Pro forma aggregate value
($1,160)
$5,057
9%
PIPE holders
Pro forma shares outstanding based on $10.00 per share price and includes 25% of 5.75MM Reinvent shares vested at closing. Additionally, pro forma shares excludes potential dilution
from out-of-the-money warrants and further assumes no redemptions by Reinvent's existing public shareholders
Proprietary and Confidential | 41
Includes $522MM of existing Hippo cash and cash equivalents as of December 31, 2020 and $638MM of net proceeds to be added to Hippo's balance sheetView entire presentation