Item 7.01 Regulation FD Disclosure.
On August 16, 2021, Hippo Holdings Inc. (the "Company") filed a Current Report
on Form 8-K/A. As previously reported in Exhibit 99.2 of the that report, the
Company's Gross Loss Ratio for the three and six months ended June 30, 2021, was
161% and 177%, respectively. Gross Loss Ratio, expressed as a percentage, is the
ratio of the Gross Losses and loss adjustment expense ("LAE") to the Gross
Earned Premium. As discussed in our Form 8-K/A, the Company's loss ratios were
driven primarily by weather-related losses that were well beyond normal levels.
To help investors quantify the impact of these catastrophic, weather-related
events separately from the impact of non-catastrophic weather and other losses,
we are providing additional information about our second quarter and first half
of 2021 results herein.
As previously discussed in Exhibit 99.1 of our Form 8-K, filed on August 16,
2021, our second quarter and first half Gross Loss Ratios were impacted by two
categories of weather-related activity:
1. Winter storm Uri ("Uri") in February 2021; and
2. Other catastrophic weather losses, concentrated in Texas where second quarter
residential catastrophic weather-related losses were the third highest reported
in the past 24 years.
Winter Storm Uri
Uri accounted for 14 and 58 percentage points of our Gross Loss Ratio in the
second quarter and first half of 2021, respectively.
Other Catastrophic Weather Losses
In addition to the impact of Uri, during the second quarter of 2021, our Gross
Loss Ratio was adversely impacted by 17 named Property Claims Services ("PCS")
events, 13 of which were related to hail and/or wind in Texas. These events
represented $73.9 million of Gross Losses and LAE, $71.0 million of which were
related to events that impacted Texas. Collectively, these 17 PCS events
represented 85 percentage points of Gross Loss Ratio. The 13 Texas-related PCS
events (not including Uri) represented 81 percentage points of Gross Loss Ratio.
In addition to the impact of Uri, during the six months ended June 30, 2021, our
Gross Loss Ratio was adversely impacted by 27 named PCS events, 18 of which were
related to hail and/or wind in Texas. These events represented $93.0 million of
Gross Losses and LAE, $88.3 million of which were related to events that
impacted Texas. Collectively, these 27 PCS events represented 58 percentage
points of Gross Loss Ratio. The 18 Texas-related PCS events (not including Uri)
represented 55 percentage points of Gross Loss Ratio.
Three Months Six Months
Ended June 30, Ended June
Gross Loss Ratio Breakdown 2021 30, 2021
Winter Storm Uri 14% 58%
PCS Catastrophic Weather Losses 85% 58%
Non-PCS Weather and Other Losses 62% 61%
Total Gross Loss Ratio 161% 177%
The information in this report furnished pursuant to Item 7.01 shall not be
deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act
of 1934, as amended (the "Exchange Act"), or otherwise subject to the
liabilities of that section. It may only be incorporated by reference in another
filing under the Exchange Act or the Securities Act of 1933, as amended, if such
subsequent filing specifically references the information furnished pursuant to
Item 7.01 of this report.
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