Jean (for Tommy McJoynt)'s questions to Hippo Holdings Inc (HIPO) leadership • Q2 2025
Question
An analyst from Keefe, Bruyette & Woods asked about operating leverage, questioning at what revenue level significant new fixed cost investments would be needed to reach the $2 billion gross written premium target. She also inquired about the selection criteria for MGA partners and how Hippo evaluates the risk-return profile of new programs.
Answer
CFO Guy Zeltser referenced the company's three-year plan, projecting GWP growth over 20% annually with operating expenses growing much slower at around 8%, highlighting the scalability of the fronting platform. President and CEO Richard McCathron added that operational efficiencies, including AI, will continue to be realized. Regarding MGA partners, McCathron described a disciplined process of starting with fully fronted deals and only taking on underwriting risk after a program has proven its performance, with a focus on diversifying the portfolio with lines like casualty.