Hippo Holdings Inc. (NYSE:HIPO) Q4 2023 Earnings Call Transcript

Stewart Ellis: Yeah. Yaron, that’s a great question. I think it gives us an opportunity to clarify maybe one of the drivers that’s going on that, that should be clear to everybody, but because we have some eliminations in the numbers between segments may be a bit confusing. So one of the headwinds for our Services segment is the pullback and the pause in underwriting that we’ve had at HHIP. So our Service business sells policies that are third-party carrier policies and it also sells HIPO Home Insurance policies. And so the third-party business is the primary driver of growth in the fourth quarter of 2023. It will continue to be the primary driver of growth, as we move into 2024 in the beginning of the year. When we start to reopen some of the segments of our HIPO Home Insurance policies that Rick mentioned, then you’ll start to get a tailwind effect from that.

But the Services business grew 20% TGP year-over-year in the Q4 despite the fact that we had paused most of the Hipo premium. So I actually look at the Services business and the growth that we’re seeing there as a bright spot. When you understand that there was a headwind associated with the HIPO Home Insurance Program pause.

Yaron Kinar: Makes sense. Thanks for the clarification.

Stewart Ellis: Absolutely.

Operator: Thank you. At this stage, we currently have no further questions. So I’ll hand back over to Rick, CEO, for any closing remarks.

Rick McCathron: Great. Well, thank you very much for your attention. We look forward to chatting with you next quarter. Have a good day.

Operator: Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may disconnect your lines.