The Company maintains a comprehensive reinsurance program to manage risk exposure, reduce earnings volatility, and safeguard capital. By ceding a portion of its underwriting risk to highly rated reinsurers and alternative capital providers, the Company limits the financial impact of catastrophe events. Nevertheless, the Company remains ultimately responsible for policyholder claims should a reinsurer fail to perform.

The Company’s reinsurance strategy includes a mix of quota share and excess of loss (“XOL”) structures, alongside collateralized protection through catastrophe bonds. The Company works with reinsurers rated “A-” (Excellent) or better by A.M. Best, or require appropriate collateral. Contracts often include provisions allowing for replacement of reinsurers whose financial condition deteriorates.

The Company’s catastrophe reinsurance program supports property risks underwritten through Spinnaker Insurance Company on behalf of Hippo Home Insurance Program (“HHIP”) and third-party MGAs. These risks are protected by program-specific XOL treaties, and in some cases, quota share reinsurance. In addition to the program specific covers, Spinnaker is also protected by a corporate catastrophe cover, and participation in the Florida

Hurricane Catastrophe Fund (FHCF). This structure is designed to provide protection against severe loss events across the portfolio, covering up to at least a 1-in-250-year return period threshold.

For business written by HHIP through Spinnaker, the Company has strategically retained more risk in recent periods by scaling back proportional reinsurance, reflecting the Company’s confidence in the portfolio’s underwriting performance. HHIP remains covered by standalone catastrophe XOL protection.

Additionally, we utilize collateralized reinsurance through Mountain Re Ltd., a Bermuda-based special purpose insurer. The catastrophe bonds issued through Mountain Re provide multi-year per occurrence coverage for a range of perils for business written through HHIP.

The following tables reflect amounts affecting the condensed consolidated statements of operations and comprehensive loss for reinsurance as of and for the three months ended March 31, 2025, and 2024 (in millions).


	For the Three Months Ended March 31,
	2025						2024
	Written premiums		Earned premiums		Loss and LAE incurred		Written premiums		Earned premiums		Loss and LAE incurred
Direct	$	209.9	$	221.2	$	211.0	$	188.6	$	202.5	$	117.3
Assumed	1.0		1.6		0.8		6.1		4.2		3.8
Gross	210.9		222.8		211.8		194.7		206.7		121.1
Ceded	(110.6)		(135.5)		(119.4)		(85.9)		(146.2)		(68.5)
Net	$	100.3	$	87.3	$	92.4	$	108.8	$	60.5	$	52.6

As of March 31, 2025 and December 31, 2024, a provision for sliding scale commissions of $27.8 million and $34.2 million, respectively, is included in provision for commission on the condensed consolidated balance sheets. As of March 31, 2025 and December 31, 2024, a receivable for sliding scale commissions of $14.7 million and $3.6 million, respectively, is included in ceding commissions receivable on the condensed consolidated balance sheets.

As of March 31, 2025 and December 31, 2024, a provision for loss participation features of $33.7 million and $41.6 million, respectively, was recorded as a contra-asset in reinsurance recoverable on the condensed consolidated balance sheets. The decrease is due primarily to settlements of the Company’s 2024 and prior year’s loss participation features with the Company’s participating reinsurers.