UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
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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.
| Gross Loss Ratio Breakdown | Three Months Ended June 30, 2021 |
Six Months 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.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Hippo Holdings Inc. | ||||||
| Date: September 1, 2021 | By: | /s/ Stewart Ellis | ||||
| Name: | Stewart Ellis | |||||
| Title: | Chief Financial Officer | |||||