We have added to the momentum we created over the past year and delivered an improved second quarter of 2024. Our plan to reduce the volatility in our homeowners program passed its first meaningful test, as we delivered a substantial year over year reduction in catastrophic losses despite the broader industry suffering another quarter of elevated severe weather. Beyond this, we continued to leverage our proprietary technology to further improve the efficiency of our operations, resulting in increased customer lifetime value and lower customer acquisition cost.

The second quarter presented the best opportunity yet for Hippo to showcase the benefits from the work we have been doing to reduce our business's exposure to wind and hail events. Compared to the second quarter of last year and excluding the positive benefits from favorable reserve development, we improved our PCS CAT weather loss ratio by 83 percentage points and reduced our weather-related loss dollars by 73%.

In the second quarter, we realized a 60% year over year increase in agent productivity, a 17% year over year increase in our lead conversion rate, and a 23% year over year increase in our cross-sell rate, allowing us to grow our top line while driving additional operating leverage.

Our business now has inherently less exposure to wind and hail, is growing more quickly because we are better meeting our customers' needs, and is operating in a more efficient and cost-effective manner. We remain confident that we can achieve our long-stated goal of positive adjusted EBITDA by the end of this year.

— Richard McCathron, President & CEO