Hippo Holdings
🧟 ZombieTrust Size
$230M
Peak Price
$18.49
Current Price
$1.75
Return
-82.0%
Peak Market Cap
$5.0B
What Happened
Insurtech company promising to disrupt homeowners insurance via AI. Lost 95%+ of its value as underwriting losses mounted and the insurance disruption thesis collapsed.
Hippo merged with Reinvent Technology Partners Z (Reid Hoffman and Zynga co-founders second SPAC) in August 2021. The company sells AI-powered homeowners insurance, claiming to process claims faster and price risk better. But Hippos loss ratios were terrible — paying out more in claims than it collected in premiums. Climate-related catastrophe losses accelerated the decline. The stock fell from $18 to under $2. A 1:25 reverse split in 2023 temporarily boosted the price but did nothing for the underlying business.
Projections vs. Reality
Projected Revenue
$600M
What they told investors
Actual Revenue
$182M
What actually happened
Hype-to-Reality Ratio: 30.0x
Key People
Assaf Wand
CEO & Co-founder
Israeli-American entrepreneur
Reid Hoffman
SPAC Sponsor
LinkedIn co-founder, second SPAC deal
Timeline
2021-03
SPAC merger announced
2021-08
Merger completed
2022-06
Stock falls 80% from peak
2023-04
1:25 reverse split
2024-01
Still unprofitable, $1-2 range
🔀 Reverse Stock Split
Reverse split ratio: 1:25. Reverse splits are used to avoid delisting but destroy shareholder value through the illusion of a higher stock price.
⚖️ Legal Actions
• Class action lawsuit filed by shareholders
📄 SEC Filings
View all EDGAR filings for Hippo Holdings
Risk Scores
Dilution Score
68/100
Insider Profit Index
55/100
Hype-to-Reality Ratio
30.0x
Projected ÷ actual revenue