Hippo : Shareholder Letter

Q2 2021

Letter to Shareholders

Key Highlights from Q2

Strong Growth

Total Generated Premium

• 101% growth in Total Generated Premium
• Raising annual guidance
• Crossed $500m in Total Generated Premium In-Force

+101%

YoY

+96%

YoY

Compelling Unit Economics

• Year 1 customer retention of 88%
• Cohort retention improving with age
• Continued high levels of marketing efficiency

Solid Foundation for the Future

• Launched 3 new states, 2 new products, and distribution partnerships with leading players in the real estate and home protection ecosystem
• Doubled MGA underwriting capacity
• >$900m cash on hand

Total Generated Premium In-Force

+96%

YoY

Year-1 Premium Retention by Cohort1

+1pp

YoY

Revenue

+76%

YoY

Geographic

Distribution of

New Premium1 TX

+14pp
	Other
YoY		Ex-Tx
	States

(1) On Hippo Programs

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Dear Shareholders,

We are incredibly proud to report our Q2 financial results for the first time as a public company. This was a quarter that was not only reflective of what we told you we would do, it was reflective of who we are. Our Q2 performance showed Hippo's growth strategy coming to life.

We achieved 101% YoY growth in Total Generated Premium during the second quarter, reaching $159 million. Our Q2 results demonstrate the power of the Hippo Platform and the power of the Hippo Strategy, and I couldn't be prouder of the effort and determination of the Hippo team that drove these results.

Looking ahead, we have growing visibility and confidence that we will not only meet the expectations we previously set for the year, but exceed them. Accordingly, we are increasing our full year guidance for Total Generated Premium from $544 million to $565 million.

At Hippo, we are transforming the home insurance market with a fundamentally different experience that customers are rapidly embracing:

• A homeowners policy from Hippo is a better, more modern policy;
• The policy from Hippo is customized and is designed with the consumer in mind;
• The buying experience with Hippo is technology-enabled to be the easiest policy purchase on the market;
• Hippo policies come with both smart home technology and a proactive partner to help you protect your home;
• And lastly, when something bad happens, the Hippo team earns our customers' future business by being there for them with care, efficiency, and effectiveness in their time of need.

This strategy has allowed us to continue to increase our market share in this vast, $110 billion market, and to surpass

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$500 million of Total Generated Premium in Force at the end of Q2, a 96% increase over the past year.

Although we are still at the beginning of our journey, our growth strategy is firing on all cylinders and we believe we are primed to continue sustained growth for the long-term.

This is not just a vision, it is our mission.

And it is not just incremental premium that we delivered in Q2; we also continued to build an increasingly solid foundation for future growth. We expanded into new markets, signed new partnerships, and launched new products in the home vertical, continuing our work to build and scale the industry's first vertically integrated home protection platform.

We executed on our geographic expansion plan, launching our products in 3 new states. And we are on track to achieve our goal of 40 states by the end of 2021.

We continued to strengthen our omni-channel distribution strategy by launching new distribution partnerships with 2 of the top 10 US insurance carriers, a top 15 home builder, a top 5 loan originator, and 2 leading smart home providers.

Further, we doubled our MGA underwriting capacity by signing partnerships with Ally Financial and Incline P&C Group to serve as additional carriers, thus reducing the capital that would otherwise be needed to support our future growth.

Finally, we launched two new products: Inspection Protection for home buyers to protect against issues missed during the home inspection process. And second, our first commercial product, Homeowners Associations (HOAs) insurance, which allows us access to a market of approximately 350,000 communities with HOAs across the US.

The team at Hippo is very pleased and proud to now be trading as a public company. While the form of our ownership has changed, the conviction and determination of our team has not. We are a growth driven company that is determined to transform the home insurance business. We will offer Hippo policies across the United States. We will drive growth and focus on bottom line metrics as we scale. We will carefully deploy the more than $900 million that we have on our balance sheet, to enhance our product offering and our growth, in order to become a leader in this industry.

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Since this is our first shareholder letter as a public company, we have included background on our approach and market opportunity, as well as our key differentiators and growth strategy. We hope this context will provide a framework for the discussion of our recent business updates and financial performance in the second quarter of 2021.

As our Q2 results proudly demonstrate, we have the right strategy, team, and resources to execute our growth strategy. We are on the path to gain significant share and transform this massive market. We believe Hippo is the future of home insurance.

Assaf Wand

Founder & Ceo

The Hippo Philosophy

Most of us treat insurance as an afterthought, only considering it when we absolutely need it. And yet, no one would drive a car if they had to shoulder the full financial liability of causing an accident, and no bank would provide a mortgage on a home without insurance coverage. The truth is that insurance is woven into the financial fabric of our society, and is a silent partner in all our major financial decisions.

For over a century insurance has been priced, underwritten, and sold in the same fundamental way - through captive and independent agents. But 2021 is a different age, one with an abundance of data; smart, connected devices in our homes and cars; and growing customer expectations. An opportunity to transform insurance is emerging. We started Hippo to accelerate and guide this transformation in the homeowners market.

In order to succeed in insurance, we need to take a long-term view. The industry is simply not set up to deliver fast wins. Investments made today will not pay off overnight, but over many years to come. We have aligned our entire company around this mindset. Our culture supports making the right decisions for the long-term. The people we hire are strategic thinkers who

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