Fundamentals snapshot
HIPO · NYQ · Financial Services · Insurance - Property & Casualty
Current price
$31.85
52-week range
$24.08 - $38.73
Market cap
$840.50M
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net cash $260.80M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Hippo is a modern insurance company that primarily sells home and property insurance directly to customers online. The company also earns money by providing the technology and official backing for other agents to sell their own policies, similar to how a mall owner rents out space to different stores. This matters because it gives Hippo multiple sources of revenue (money a company brings in from its business activities), rather than relying only on the policies it sells itself.
Hippo was founded in 2015 with the goal of modernizing the home insurance industry, which the founders saw as outdated. The company initially focused on providing a fast, online process for getting a homeowner's insurance quote, often in 60 seconds. A major turning point was the acquisition of Spinnaker Insurance Company in 2020, which allowed Hippo to have its own licensed insurance carrier instead of only relying on others. In 2021, Hippo became a publicly traded company, and in 2022, it acquired First Connect, a digital platform for independent insurance agents. More recently, the company has shifted its focus from rapid growth to improving its underwriting (the process of evaluating and pricing insurance risk) and achieving profitability.
Hippo provides property and casualty insurance, which is insurance that protects your belongings and covers you if you're held responsible for an accident. Think of it as a safety net for your home and possessions. They offer insurance for homeowners, renters, and small to mid-sized businesses. A key part of their approach is using technology, like data from smart home devices, to better understand the risks of insuring a property and to help homeowners prevent problems before they happen.
This is the part of the business that most people associate with Hippo, offering homeowners insurance directly to customers. When you go to their website to get a quote for insuring your house, you are interacting with this segment. This business line generates revenue by collecting premiums (the regular payments you make for your insurance policy). While this was Hippo's original focus, the company is now working to diversify and not rely solely on this segment, which can be affected by large events like natural disasters.
This segment, which includes their subsidiary Spinnaker Insurance Company, acts as a platform for other insurance providers. Essentially, Hippo allows other insurance companies, known as managing general agents (MGAs), to use its insurance licenses and infrastructure to sell their own insurance products. In return, Hippo earns a fee and sometimes a portion of the premiums from the policies these partners sell. This is a significant part of Hippo's business and is considered a more capital-light way to generate revenue, meaning it doesn't require as much of Hippo's own money to be held in reserve for potential claims.
The Services segment is focused on earning fee-based income without taking on the risk of paying out claims. This includes their Consumer Agency, which helps customers find the right insurance policies, whether from Hippo or another company. It also includes First Connect, a digital marketplace that allows independent insurance agents to access and sell policies from various carriers. This part of the business makes money through commissions and fees for the services it provides.
Management is currently focused on achieving consistent profitability and reducing the company's exposure to large, unpredictable losses, particularly from catastrophes. A key part of this strategy is diversifying the business beyond just homeowners insurance and growing its less risky, fee-based income streams. They are also investing in technology and automation to lower operating costs and improve their underwriting process. The company is also looking to selectively expand its homeowners insurance program into new states where they believe they can be profitable.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net cash $260.8M - more cash than debt. Interest coverage -0.8x.
Hippo Holdings Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Total debt $50.70M Interest coverage -0.85x This is the baseline the peer rows are being compared against.
Total debt $197.80M Interest coverage 2.94x This peer still has a real interest-payment cushion, while HIPO does not.
Total debt $405.28M Interest coverage -2.19x Neither company has much profit cushion over interest right now.
Total debt $372.84M Interest coverage 3.14x This peer still has a real interest-payment cushion, while HIPO does not.
Total debt $398.02M Interest coverage 1.66x This peer still has a real interest-payment cushion, while HIPO does not.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know