Homeowners Insurance Market Opportunity
Path to steady state Loss Ratio
Bridge from 2020 to Steady State Indicated Loss Ratio of Hippo Programs¹
1.
2.
121%
-24%
-5%
-9%
83%
-9%
-6%
-4%
60%
-4%
2020 Normalization
Maturity
2020E
Loss Ratio
Excess
CAT
COVID
Unearned
Rate Changes
2020
Normalized
Loss Ratio
Operational
Improvements
Growth
Penalty²
Loss and Allocated Loss Adjustment Expense; refers to all policies underwritten by Hippo's MGA, whether written on
our own carrier or a 3rd party carrier; preliminary estimates, subject to change
Higher Earned Premium /Written Premium ratio and higher tenure maturity (higher renewal business as % of book)
Differentiation
Proactive /
Preventative
Strategy
Underwriting
and Claims
Innovation/
Product Mix
Steady State
Loss Ratio
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