What happened
Hippo Holdings (NYSE: HIPO) was a bit of a clumsy beast on the market Tuesday. Rocked by a big change in the C-suite, the next-generation insurer saw its share price close more than 4% lower on the day.
So what
Just after the market closed on Monday, Hippo announced that its founder, Assaf Wand, is no longer its CEO. Wand has been replaced by Richard McCathron, the company's president and a member of its board of directors.
Image source: Getty Images.
McCathron was already a veteran insurance company executive before being named Hippo's president in early 2017. He served as CEO at both First Connect Insurance and Superior Access Insurance. From 2004 to 2007, he worked at Mercury Insurance Group as its regional vice president.
Wand is stepping aside as CEO, but he's not stepping down from the company. He is now executive chairman of its board, and in that role will concentrate on long-term strategic initiatives for Hippo.
"Rick has been my partner every step of the way, from the creation of Hippo's strategic vision, to growing our strong stable of partnerships, to driving the company forward every day," said Wand of the incoming leader.
"In this next phase of Hippo's growth, it's a natural progression for Rick to step into the CEO role so I can focus on longer-term strategic initiatives," Wand added.
Now what
Wand is transitioning at an up time for Hippo, which probably explains the unhappy investor reaction to the news. In mid-May, the company announced its first-quarter results; while the insurer missed analyst estimates on both the top and bottom lines, it did report dramatic growth in premiums, and it delivered the best gross loss ratio in its short history as a publicly traded company.
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