Lemonade’s layoff of 20 percent of the Metromile workforce-roughly 60 employees-came in July, just after Lemonade announced that it had closed its deal to acquire Metromile Root was the first to announce an “organizational realignment” in January, with 330 team members cut from the company. Hippo’s reduction in force comes in a year that has seen several other InsurTechs announce layoffs, including two other public companies in the property/casualty InsurTech space: Root and Lemonade. 6, 2022 (with a live webcast and replays available), during which McCathron and Chief Financial Officer Stewart Ellis will host a series of presentations, along with Q&A, highlighting Hippo’s financial outlook, operating strategy and “plans for delivering upon the company’s mission of protecting the joy of home ownership.” A LinkedIn post announcing the event describes the additional mission of “aggressively pursuing the path to profitability” and links to a schedule that originally had Harpaz listed as a presenter, along with other C-suite executives. The company is planning to hold an in-person Investor Day event in New York City next week on Sept. (Read the full interview in the related article, “ Hippo Sets Sights on Improved Gross Loss Ratio, Geographic Expansion for 2022,” June 3, 2022) In addition to expanding geographically to counterbalance a concentration in Texas and Florida, with its most recent move going into New York, Hippo has also tightened underwriting and hiked rates in problem areas, he said. And we recognize that now, as a public company, it is very, very important for us to have credibility in the market.” You’ve only gone through a few underwriting cycles as opposed to multiple underwriting cycles. “You have new customers, not seasoned customers. “As a new player, it takes time to get the underwriting results where you want them,” McCathron told CM in June. In the second quarter, the loss ratio stayed on track, coming in at 78. While Hippo has been talking about such expansion since 2018, when it first partnered with Spinnaker Insurance, ultimately acquiring the carrier in August 2020, the 76 loss ratio in first-quarter 2022 was the best quarterly loss ratio Hippo has recorded since becoming a public company last year. “Underwriting profitability is really what will be the sustainable future” for Hippo, he told CM in June, explaining that insurance leaders hired over the last year set their sights on improving the loss ratio and expanding nationally to improve geographic diversification. For the full year in 2021, Hippo’s gross loss ratio was 138, according to information in the latest 10K filing. He described the improvement in Hippo’s first-quarter 2022 gross loss ratio to 76 (down from 198 in first-quarter 2021) as dramatic. In an interview just a few days prior to his CEO appointment, McCathron told Carrier Management about Hippo’s commitment to underwriting profitability. News of the intended reverse split came just about a month after Hippo announced that it had appointed President Richard McCathron as chief executive officer, replacing founder and prior CEO Assaf Wand (who remains as executive chair). The company first announced its plans for the reverse stock split in July, stating that the action was intended to resolve an issue raised in a non-compliance notice Hippo received from the New York Stock Exchange on July 19, 2022. Beyond that, the filing said that the company is reviewing the potential impact of the reduction on facility lease exits and additional employee-related costs but is currently unable to provide any estimate of additional restructuring costs. Hippo said the company expects to record charges in the range of $1.8-$2.0 million in the third quarter for severance, benefits and related costs as a result of these actions. 1, with the affected employees getting just one day of notice on Aug. The other staff cuts are effective on Sept.
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