Hippo, the home insurance group focused on proactive home protection, announced the successful placement of its 2023 reinsurance program.
“Our expected loss ratios are rapidly converging to our long-term targets which drove our strategic decision to re-position our program. We are pleased that reinsurers continue to see the value in our technology-driven, proactive approach.”
“In one of the most difficult reinsurance markets in the last 20 years, we successfully placed reinsurance on our flagship homeowners program on terms that are better than our treaty from last year,” said Rick McCathron, CEO and President. “Our expected loss ratios are rapidly converging to our long-term targets which drove our strategic decision to re-position our program. We are pleased that reinsurers continue to see the value in our technology-driven, proactive approach.”
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“We’re very pleased with the outcome of our renewals,” said Stewart Ellis, CFO. “Our 2023 program retains more of the premium associated with the day-to-day risks our customers face and where we believe our proactive approach to preventing losses can really make a difference. At the same time, we’ve added reinsurance protection against large losses from major catastrophes to ensure our financial stability.”
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Highlights:
- Proportional Reinsurance Treaties (Hippo) – For our primary homeowners reinsurance program, commencing in 2023, we secured proportional, quota share reinsurance from a diverse panel of six third-party reinsurers, all rated “A-” or better by AM Best or appropriately collateralized. We expect to retain approximately 40% of the premium and losses through our insurance company subsidiaries or our captive reinsurance company.
- In comparison to the prior year treaty, we have reduced the use of loss participation features resulting in an overall loss exposure for catastrophic events similar to the prior year. Our required capital position will be substantially similar to the prior year.
- Non-Proportional Reinsurance (Hippo) – We increased our purchases of non-proportional Excess-of-Loss (XOL) reinsurance, raising our per occurrence XOL limit by 32%. We are protected on the upper layers of risk beyond a 1-in-250 year event.
- Additional details of the reinsurance placement for the Hippo program will be disclosed at the time of our 4Q22 earnings report on 3/2/2023 and in our 2022 Annual Report on Form 10K to be filed with the SEC.
Hippo Holdings Inc.’s operating subsidiaries include Hippo Insurance Services, Hippo Home Care, First Connect Insurance Services, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company, and Mainsail Insurance Company. Hippo Insurance Services is a licensed property casualty insurance agent with products underwritten by various affiliated and unaffiliated insurance companies.
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