Jane Doe's questions to Hippo Holdings Inc (HIPO) leadership • Q1 2025
Question
Jane Doe, on behalf of Tommy, inquired about the cost of the new $50 million surplus note and the strategic rationale for using this instrument to fund Spinnaker's growth versus a cash contribution from the holding company.
Answer
President and CEO Rick McCathron explained that the surplus note carries an approximate 9.5% rate, which he described as favorable. He stated the capital is primarily intended to support the growth of the Spinnaker platform, both for maintaining its AM Best rating and for increasing risk participation in high-quality, profitable programs. McCathron emphasized that this approach funds growth for both Spinnaker's third-party business and the Hippo Homeowners Insurance Program (HHIP) without diluting equity.