The company shares some of the changes in its program
Inforia - Hippo has announced the successful launch of its 2024 reinsurance program.
"Our reinsurance partners are offering better terms for the second year in a row, demonstrating their unwavering confidence in our company," said Rick McCathron, CEO and President of Hippo.
"We continue to work hard to mitigate weather-related risks. , coupled with our proactive approach to protecting homes, our loss ratios continue to improve significantly. This significantly increases the attractiveness of the Hippo Home Insurance program to reinsurers, many of whom have long-term partnerships with us."
Chief Financial Officer Stuart Ellis attributed the success of the placement to the company's values.
Ellis said: “The successful implementation of our 2024 reinsurance program, and our decision to retain a greater proportion of non-PCS risk exposures and related premiums on our balance sheet, reflects the profitability and predictability of our underwriting results Confidence continues to grow." said.
Implementation highlights announced in the press release include the following:
- The company has undergone a strategic shift in its approach to reinsurance in terms of proportional reinsurance contracts (Hippo) and non-proportional reinsurance (Hippo). Hippo Home Insurance plans to reduce its reliance on proportional reinsurance and increase retention of premiums and related non-catastrophic wear and tear losses on its balance sheet in anticipation of continued improvement in wear and tear loss ratios. This decision also reflects the proactive measures taken by Hippo to mitigate volatility.
- The reduction in the reinsurance proportion of the Hippo Home Insurance program compared to the previous arrangement is expected to mitigate the impact of the loss sharing feature. At the same time, there has been an increase in purchases of non-proportional excess of losses (XOL) reinsurance.
These include increasing XOL limits per event by 11% and expanding participation to 19 reinsurers (previously 14). This arrangement combines with existing catastrophe protection to extend coverage to higher risk tiers and provide protection against events that occur once in 250 years, up to one year.
Further insights into the Hippo program's reinsurance strategy will be provided in its fourth quarter 2023 earnings report, scheduled for release in March 2024, and will be detailed in its 2023 annual report on Form 10K filed with the SEC.
Hippo is a home insurance group specializing in proactive home protection.
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