The corporate shares among the modifications in its program
Hippo has introduced the profitable placement of its 2024 reinsurance program.
“Our reinsurance companions have demonstrated their unwavering confidence in our enterprise by providing improved phrases for the second consecutive 12 months,” mentioned Rick McCathron, CEO and president of Hippo. “Our persistent efforts to mitigate weather-related dangers, coupled with our proactive stance on residence safety, have constantly pushed vital enhancements in our loss ratio. This has notably enhanced the enchantment of the Hippo House Insurance coverage Program to reinsurers, lots of whom have maintained longstanding partnerships with us.”
CFO Stewart Ellis attributed the success of the location to the values of the corporate.
“The accomplishment of inserting our 2024 reinsurance program, together with our determination to retain a bigger portion of the non-PCS publicity and corresponding premium on our stability sheet, displays our escalating confidence within the profitability and predictability of our underwriting outcomes,” Ellis mentioned.
Among the many highlights of the implementation shared in a Press launch embrace the next:
- There was a strategic shift within the strategy to reinsurance by the corporate concerning Proportional Reinsurance Treaties (Hippo) and Non-Proportional Reinsurance (Hippo). The choice to scale back the reliance on proportional reinsurance for the Hippo House Insurance coverage Program and to extend the retention of premiums and related non-catastrophe attritional losses on the stability sheet was made in anticipation of ongoing enhancements within the attritional loss ratio. This determination additionally displays the proactive measures undertaken by Hippo to mitigate volatility.
- The discount in proportional reinsurance for the Hippo House Insurance coverage Program is anticipated to mitigate the influence of loss participation options in comparison with earlier agreements. Concurrently, there was a rise within the purchases of non-proportional Extra-of-Loss (XOL) reinsurance. This concerned elevating the per prevalence XOL restrict by 11% and broadening the participation to incorporate 19 reinsurers, up from the earlier 14. This placement, mixed with present disaster protections, extends protection to the higher layers of threat, safeguarding in opposition to occasions as much as a 1-in-250-year prevalence.
Additional insights into the reinsurance methods for the Hippo program shall be unveiled in the course of the 4Q23 earnings report scheduled for March 2024 and detailed within the 2023 Annual Report on Kind 10K to be filed with the SEC.
Hippo is a house insurance coverage group that’s targeted on proactive residence safety.
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