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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | Income (loss) before tax consists of the following (in millions):
| Year Ended December 31,
| 2023 |  | 2022
United States | $ | (274.0) |  |  | $ | (333.5) |
Foreign | 1.4 |  |  | 1.4 |
Loss before income taxes attributable to Hippo | $ | (272.6) |  |  | $ | (332.1) |
Income before tax attributable to noncontrolling interests | 10.1 |  |  | 6.9 |
Loss before income taxes | $ | (262.5) |  |  | $ | (325.2) |
Schedule of Effective Income Tax Rate Reconciliation | The components of the total provision for income taxes are as follows (in millions):
| Year Ended December 31,
| 2023 |  | 2022
Loss before income taxes attributable to Hippo | $ | (272.6) |  |  | $ | (332.1) |
Income tax benefit from statutory rate | (57.2) |  |  | (69.8) |
Effect of: |  |  |
Meals, entertainment & parking | 0.2 |  |  | 0.2 |
Deferred compensation | 7.4 |  |  | 6.6 |
State taxes | (9.1) |  |  | (9.0) |
Goodwill impairment | — |  |  | 8.0 |
Increase in valuation allowance | 64.2 |  |  | 66.8 |
Foreign taxes | 0.1 |  |  | 1.2 |
Other | (5.1) |  |  | (2.7) |
Income taxes expense | $ | 0.5 |  |  | $ | 1.3 |
Schedule of Components of Income Tax Provision | The components of the provision for income taxes are as follows (in millions):
| Year Ended December 31,
| 2023 |  | 2022
Income tax applicable to: |  |  |
Current |  |  |
Federal | $ | — |  |  | $ | — |
State | 0.4 |  |  | 0.1 |
Foreign | 0.8 |  |  | 1.2 |
Total current provision | $ | 1.2 |  |  | $ | 1.3 |
Deferred |  |  |
Federal | $ | — |  |  | $ | — |
State | — |  |  | — |
Foreign | (0.7) |  |  | — |
Total deferred provision | $ | (0.7) |  |  | $ | — |
Total provision for income taxes | $ | 0.5 |  |  | $ | 1.3 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows (in millions):
| As of December 31,
| 2023 |  | 2022
Deferred tax assets: |  |  |
Net operating loss carryforward | $ | 171.6 |  |  | $ | 127.7 |
Intangible assets | 10.2 |  |  | 8.5 |
Research and development credit | 10.5 |  |  | 6.7 |
Deferred compensation | 9.7 |  |  | 6.2 |
Unearned premium reserve | 4.1 |  |  | 1.6 |
Loss reserve discount | 1.1 |  |  | 0.8 |
Unrealized losses | 2.0 |  |  | 1.7 |
Lease liability | 3.5 |  |  | 5.6 |
Deferred revenue | 5.9 |  |  | 4.3 |
Capitalized software | 13.7 |  |  | 5.8 |
Other accruals | 3.2 |  |  | 0.7 |
Total deferred tax assets | $ | 235.5 |  |  | $ | 169.6 |
Valuation allowance | (226.0) |  |  | (161.5) |
Total deferred income tax assets | $ | 9.5 |  |  | $ | 8.1 |
Deferred tax liabilities |  |  |
Property and equipment | $ | 0.9 |  |  | $ | 0.5 |
Provision for commission slide and cancellation | — |  |  | 0.2 |
Deferred acquisition costs | 5.0 |  |  | 1.7 |
Right-of-use asset | 2.4 |  |  | 5.4 |
Other | 0.4 |  |  | 0.3 |
Total deferred tax liabilities | $ | 8.7 |  |  | $ | 8.1 |
Deferred income tax assets, net | $ | 0.8 |  |  | $ | — |
Schedule of Unrecognized Tax Benefits Roll Forward | Below is a reconciliation of unrecognized tax benefits (in millions):
|  |  | Year Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  |
Beginning unrecognized tax benefits |  |  |  |  | $ | 2.9 |  |  | $ | 1.1 |  |  |
Increases related to tax positions from prior years |  |  |  |  | 0.8 |  |  | 0.7 |  |  |
Increases related to tax positions taken in the current year |  |  |  |  | 1.4 |  | 1.1 |  |
Ending unrecognized tax benefits |  |  |  |  | $ | 5.1 |  |  | $ | 2.9 |  |  |
Schedule of Operating Loss Carryforwards | Components of the NOL carryforwards are as follows (in millions):
|  |  | Indefinite |  |
| 20-year Carryforward |  | Carryforward |  |
| Expires in 2035 - 2043 |  | Period |  | Total
U.S. Federal | $ | 175.3 |  | 0 | $ | 544.5 |  |  | $ | 719.8 |
U.S. State | 326.7 |  | — |  |  | 326.7
Balance as of December 31, 2023 | $ | 502.0 |  |  | $ | 544.5 |  |  | $ | 1,046.5 |

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