Hippo Announces $50 Million Stock Repurchase Program

Rhea-AI Summary

Hippo Holdings Inc. (NYSE: HIPO) has authorized a $50 million stock repurchase program aimed at enhancing shareholder value. The repurchases will take place in the open market or through negotiated transactions, with execution determined by market conditions. This program offers flexibility, allowing Hippo to adjust the amount and timing of repurchases. The initiative underscores Hippo's commitment to proactive home protection while aiming to strengthen its financial position. This move may lead to increased earnings per share (EPS) and reflects management's confidence in the company's future.

Positive

• Authorization of a $50 million stock repurchase program to enhance shareholder value.
• Potential increase in EPS due to stock buybacks, reflecting management's confidence.

Negative

• None.

PALO ALTO, Calif.--(BUSINESS WIRE)-- Hippo Holdings Inc. (NYSE: HIPO) (“Hippo”), the home insurance group focused on proactive home protection, today announced that its board of directors has authorized a stock repurchase program for up to $50 million of its common stock, effective immediately.

Repurchases under the program may be made in the open market, in privately negotiated transactions or otherwise, with the amount and timing of repurchases to be determined at Hippo’s discretion depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Hippo may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate Hippo to acquire any particular amount of its common stock, and may be modified, suspended or terminated at any time at Hippo’s discretion.

About Hippo

Hippo is protecting the joy of homeownership, helping to safeguard customers’ most important financial asset by harnessing the power of real-time data, smart home technology, and a growing suite of home services to deliver proactive home protection.

Hippo Holdings Inc.’s operating subsidiaries include Hippo Insurance Services, Hippo Home Care, First Connect Insurance Services, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company, and Mainsail Insurance Company. Hippo Insurance Services is a licensed property casualty insurance agent with products underwritten by various affiliated and unaffiliated insurance companies. For more information, including licensing details, visit http://www.hippo.com.

Forward-looking statement safe harbor

Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, the company’s reverse stock split and the expected timing of events related thereto. These statements are based on the current expectations of Hippo’s management and are not predictions of actual performance. Actual events and circumstances are subject to risks and uncertainties, are difficult or impossible to predict and will differ from assumptions, and many actual events and circumstances are beyond the control of Hippo. If any of these risks materialize or our assumptions prove incorrect, actual events and timing could differ materially from the events and timing implied by these forward-looking statements. There may be additional risks and uncertainties that Hippo does not presently know, or that Hippo currently believes are immaterial, that could also cause actual events and timing to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Hippo’s expectations, plans, or forecasts of future events and views as of the date of this press release. Hippo anticipates that subsequent events and developments will cause Hippo’s assessments to change. However, while Hippo may elect to update these forward-looking statements at some point in the future, Hippo specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Hippo’s assessments of any date or time subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230313005232/en/

Investors:

Cliff Gallant, VP of Investor Relations

investors@hippo.com

Press:

Mark Olson

press@hippo.com

Source: Hippo

FAQ

What is the purpose of Hippo's $50 million stock repurchase program?

The purpose is to enhance shareholder value by repurchasing shares, which may also increase earnings per share (EPS).

How will Hippo execute the stock buyback?

Hippo will execute the stock buyback in the open market or through negotiated transactions, depending on market conditions.

When was the stock repurchase program authorized?

The stock repurchase program was authorized immediately as announced in the latest press release.

What could be the impact of the buyback on HIPO's stock price?

The buyback could lead to an increase in HIPO's stock price due to reduced share supply and improved earnings per share (EPS).