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Segments | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Segments | 17. Segments Starting with the first quarter of 2023, the Company realigned its internal reporting to reflect how the Company now manages and monitors its operating results. As a result of these changes, the Company now has three reportable segments: Services, Insurance-as-a-Service, and Hippo Home Insurance Program. The Company’s Services segment earns fees and/or commission income without assuming underwriting risk or need for reinsurance. The Company also partners with home builders, as well as independent agencies, to source insureds seeking a product for which the Company provides the best carrier for the insured whether it be of Hippo or a third-party carrier, including other insurance products like auto, rental, etc. Insurance-as-a-Service is managed through the Company’s subsidiary Spinnaker and is a platform to support third party MGAs. The Company rents its capital, 50 state licenses and the strong financial rating of Spinnaker (rated “A-” Excellent by A.M. Best) to earn fee-based revenues with the assumption of limited underwriting risk using quota-share reinsurance. The Company also earns a portion of the premiums paid to it for the risk the Company retains as well as generates investment income. The diversification of the Company’s balance sheet allows it to carry less capital than the Company’s MGA clients would be required to on their own. The Hippo Home Insurance Program is the Company’s Hippo-branded homeowners insurance business. The Company’s main source of revenue is the premiums paid to it by the Company’s homeowner customers. In addition, the Company’s revenues include commissions for premiums the Company cedes to third parties, policy and services fees and investment income. The Company’s strategy is to retain the portion of the underwriting risk where the Company believes its loss prevention strategies are the most effective. The Company’s Chief Executive Officer, who serves as the chief operating decision maker (“CODM”), evaluates the financial performance of the Company’s segments based upon segment revenues and segment adjusted operating income or (loss) as the profitability measure. Items outside of adjusted operating income or (loss) are not reported by segment, since they are excluded from the single measure of segment profitability reviewed by the CODM. The Company’s CODM does not use segment assets to allocate resources or to assess performance of the segments and, therefore, segment assets have not been reported separately. The tables below present segment information reconciled to total Net Loss attributable to Hippo, for the periods indicated (in millions). Financial information for the period ended September 30, 2022 has been revised to conform with the current year presentation.
| Three Months Ended September 30, 2023
| Services |  | Insurance-as-a-Service |  | Hippo Home Insurance Program |  | Intersegment Eliminations(1) |  | Total
Revenue: |  |  |  |  |  |  |  |  |
Net earned premium | $ | — |  |  | $ | 12.2 |  |  | $ | 20.7 |  |  | $ | — |  |  | $ | 32.9 |
Commission income, net | 11.5 |  | 5.4 |  | (0.5) |  | (2.2) |  | 14.2
Service and fee income | 0.1 |  | — |  | 4.8 |  | — |  | 4.9
Net investment income | — |  | 1.8 |  | 3.9 |  | — |  | 5.7
Total Revenue | 11.6 |  | 19.4 |  | 28.9 |  | (2.2) |  | 57.7
Adjusted Operating Expenses: |  |  |  |  |  |  |  |  |
Loss and loss adjustment expense | — |  |  | 5.2 |  |  | 31.0 |  |  | — |  |  | 36.2 |
Insurance related expense | — |  |  | 7.1 |  |  | 9.4 |  |  | (0.7) |  |  | 15.8 |
Sales and marketing | 10.6 |  |  | — |  |  | 4.3 |  |  | (0.9) |  |  | 14.0 |
Technology and development | 4.5 |  |  | 0.2 |  |  | 4.3 |  |  | — |  |  | 9.0 |
General and administrative | 3.3 |  |  | 1.5 |  |  | 7.7 |  |  | — |  |  | 12.5 |
Other expenses | 0.1 |  |  | — |  |  | — |  |  | — |  |  | 0.1 |
Total adjusted operating expenses | 18.5 |  |  | 14.0 |  |  | 56.7 |  |  | (1.6) |  |  | 87.6 |
Less: Net investment income | — |  |  | (1.8) |  |  | (3.9) |  |  | — |  |  | (5.7) |
Less: Noncontrolling interest | (2.8) |  |  | — |  |  | — |  |  | — |  |  | (2.8) |
Adjusted operating income (loss) | (9.7) |  |  | 3.6 |  |  | (31.7) |  |  | (0.6) |  |  | (38.4) |
Net investment income |  |  |  |  |  |  |  |  | 5.7
Depreciation and amortization |  |  |  |  |  |  |  |  | (4.9)
Stock-based compensation |  |  |  |  |  |  |  |  | (14.0)
Fair value adjustments |  |  |  |  |  |  |  |  | 0.2
Contingent consideration charge |  |  |  |  |  |  |  |  | (0.8)
Other one-off transactions |  |  |  |  |  |  |  |  | (1.2)
Income tax benefit |  |  |  |  |  |  |  |  | 0.3
Net loss attributable to Hippo |  |  |  |  |  |  |  |  | $ | (53.1) |
(1)Intersegment eliminations include commissions paid from Hippo Home Insurance Program for policies sold by the Company’s Services segment (revenue, cost, and other adjustments in respective business units eliminated as part of consolidation).
| Three Months Ended September 30, 2022
| Services |  | Insurance-as-a-Service |  | Hippo Home Insurance Program |  | Intersegment Eliminations(1) |  | Total
Revenue: |  |  |  |  |  |  |  |  |
Net earned premium | $ | — |  |  | $ | 6.2 |  |  | $ | 4.5 |  |  | $ | — |  |  | $ | 10.7 |
Commission income, net | 9.4 |  | 3.1 |  | 6.9 |  | (5.1) |  | 14.3
Service and fee income | 0.1 |  | — |  | 3.1 |  | — |  | 3.2
Net investment income | — |  | 0.7 |  | 1.8 |  | — |  | 2.5
Total Revenue | 9.5 |  | 10.0 |  | 16.3 |  | (5.1) |  | 30.7
Adjusted Operating Expenses: |  |  |  |  |  |  |  |  |
Loss and loss adjustment expense | — |  |  | 6.0 |  |  | 17.4 |  |  | — |  |  | 23.4 |
Insurance related expense | — |  |  | 0.2 |  |  | 16.7 |  |  | (5.1) |  |  | 11.8 |
Sales and marketing | 19.8 |  |  | — |  |  | 4.1 |  |  | — |  |  | 23.9 |
Technology and development | 1.8 |  |  | — |  |  | 7.6 |  |  | — |  |  | 9.4 |
General and administrative | 2.2 |  |  | 1.1 |  |  | 9.5 |  |  | — |  |  | 12.8 |
Other expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total adjusted operating expenses | 23.8 |  |  | 7.3 |  |  | 55.3 |  |  | (5.1) |  |  | 81.3 |
Less: Net investment income | — |  |  | (0.7) |  |  | (1.8) |  |  | — |  |  | (2.5) |
Less: Noncontrolling interest | (1.7) |  |  | — |  |  | — |  |  | — |  |  | (1.7) |
Adjusted operating loss | (16.0) |  |  | 2.0 |  |  | (40.8) |  |  | — |  |  | (54.8) |
Net investment income |  |  |  |  |  |  |  |  | 2.5
Depreciation and amortization |  |  |  |  |  |  |  |  | (3.8)
Stock-based compensation |  |  |  |  |  |  |  |  | (17.0)
Fair value adjustments |  |  |  |  |  |  |  |  | 0.2
Contingent consideration charge |  |  |  |  |  |  |  |  | (0.2)
Other one-off transactions |  |  |  |  |  |  |  |  | (0.5)
Income tax expense |  |  |  |  |  |  |  |  | (0.3)
Restructuring charges |  |  |  |  |  |  |  |  | (1.8)
Goodwill impairment charge |  |  |  |  |  |  |  |  | (53.5)
Net loss attributable to Hippo |  |  |  |  |  |  |  |  | $ | (129.2) |
(1)Intersegment eliminations include commissions paid from Hippo Home Insurance Program for policies sold by the Company’s Services segment (revenue, cost, and other adjustments in respective business units eliminated as part of consolidation).
| Nine Months Ended September 30, 2023
| Services |  | Insurance-as-a-Service |  | Hippo Home Insurance Program |  | Intersegment Eliminations(1) |  | Total
Revenue: |  |  |  |  |  |  |  |  |
Net earned premium | $ | — |  |  | $ | 29.7 |  |  | $ | 39.3 |  |  | $ | — |  |  | $ | 69.0 |
Commission income, net | 32.4 |  | 14.1 |  | 8.5 |  | (7.2) |  | 47.8
Service and fee income | 0.4 |  | — |  | 11.5 |  | — |  | 11.9
Net investment income | — |  | 4.8 |  | 11.7 |  | — |  | 16.5
Total Revenue | 32.8 |  | 48.6 |  | 71.0 |  | (7.2) |  | 145.2
Adjusted Operating Expenses: |  |  |  |  |  |  |  |  |
Loss and loss adjustment expense | — |  |  | 11.7 |  |  | 138.2 |  |  | — |  |  | 149.9 |
Insurance related expense | — |  |  | 16.0 |  |  | 27.9 |  |  | (2.3) |  |  | 41.6 |
Sales and marketing | 33.9 |  |  | — |  |  | 14.4 |  |  | (3.3) |  |  | 45.0 |
Technology and development | 12.3 |  |  | 0.5 |  |  | 13.6 |  |  | — |  |  | 26.4 |
General and administrative | 9.3 |  |  | 4.1 |  |  | 23.1 |  |  | — |  |  | 36.5 |
Other expenses | 0.5 |  |  | — |  |  | — |  |  | — |  |  | 0.5 |
Total adjusted operating expenses | 56.0 |  |  | 32.3 |  |  | 217.2 |  |  | (5.6) |  |  | 299.9 |
Less: Net investment income | — |  |  | (4.8) |  |  | (11.7) |  |  | — |  |  | (16.5) |
Less: Noncontrolling interest | (7.1) |  |  | — |  |  | — |  |  | — |  |  | (7.1) |
Adjusted operating income (loss) | (30.3) |  |  | 11.5 |  |  | (157.9) |  |  | (1.6) |  |  | (178.3) |
Net investment income |  |  |  |  |  |  |  |  | 16.5
Depreciation and amortization |  |  |  |  |  |  |  |  | (14.4)
Stock-based compensation |  |  |  |  |  |  |  |  | (46.8)
Fair value adjustments |  |  |  |  |  |  |  |  | 0.2
Contingent consideration charge |  |  |  |  |  |  |  |  | (4.5)
Other one-off transactions |  |  |  |  |  |  |  |  | (3.3)
Income tax expense |  |  |  |  |  |  |  |  | (0.2)
Net loss attributable to Hippo |  |  |  |  |  |  |  |  | $ | (230.8) |
(1)Intersegment eliminations include commissions paid from Hippo Home Insurance Program for policies sold by the Company’s Services segment (revenue, cost, and other adjustments in respective business units eliminated as part of consolidation).
| Nine Months Ended September 30, 2022
| Services |  | Insurance-as-a-Service |  | Hippo Home Insurance Program |  | Intersegment Eliminations(1) |  | Total
Revenue: |  |  |  |  |  |  |  |  |
Net earned premium | $ | — |  |  | $ | 15.6 |  |  | $ | 15.3 |  |  | $ | — |  |  | $ | 30.9 |
Commission income, net | 25.0 |  | 8.1 |  | 18.1 |  | (12.5) |  | 38.7
Service and fee income | 0.8 |  | — |  | 9.5 |  | — |  | 10.3
Net investment income | — |  | 1.3 |  | 2.7 |  | — |  | 4.0
Total Revenue | 25.8 |  | 25.0 |  | 45.6 |  | (12.5) |  | 83.9
Adjusted Operating Expenses: |  |  |  |  |  |  |  |  |
Loss and loss adjustment expense | — |  |  | 9.9 |  |  | 63.9 |  |  | — |  |  | 73.8 |
Insurance related expense | — |  |  | 6.5 |  |  | 41.9 |  |  | (12.5) |  |  | 35.9 |
Sales and marketing | 44.5 |  |  | 0.2 |  |  | 13.8 |  |  | — |  |  | 58.5 |
Technology and development | 5.3 |  |  | — |  |  | 23.1 |  |  | — |  |  | 28.4 |
General and administrative | 6.8 |  |  | 3.3 |  |  | 27.5 |  |  | — |  |  | 37.6 |
Other expenses | 0.5 |  |  | — |  |  | — |  |  | — |  |  | 0.5 |
Total adjusted operating expenses | 57.1 |  |  | 19.9 |  |  | 170.2 |  |  | (12.5) |  |  | 234.7 |
Less: Net investment income | — |  |  | (1.3) |  |  | (2.7) |  |  | — |  |  | (4.0) |
Less: Noncontrolling interest | (4.3) |  |  | — |  |  | — |  |  | — |  |  | (4.3) |
Adjusted operating income (loss) | (35.6) |  |  | 3.8 |  |  | (127.3) |  |  | — |  |  | (159.1) |
Net investment income |  |  |  |  |  |  |  |  | 4.0
Depreciation and amortization |  |  |  |  |  |  |  |  | (11.2)
Stock-based compensation |  |  |  |  |  |  |  |  | (46.3)
Fair value adjustments |  |  |  |  |  |  |  |  | 2.8
Contingent consideration charge |  |  |  |  |  |  |  |  | (2.6)
Other one-off transactions |  |  |  |  |  |  |  |  | (1.8)
Income tax expense |  |  |  |  |  |  |  |  | (0.8)
Restructuring charges |  |  |  |  |  |  |  |  | (1.8)
Goodwill impairment charge |  |  |  |  |  |  |  |  | (53.5)
Net loss attributable to Hippo |  |  |  |  |  |  |  |  | $ | (270.3) |
(1)Intersegment eliminations include commissions paid from Hippo Home Insurance Program for policies sold by the Company’s Services segment (revenue, cost, and other adjustments in respective business units eliminated as part of consolidation).

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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