Hippo Reports Third Quarter 2026 Financial Results October 29, 2026 SAN JOSE, Calif
Hippo Holdings Inc. (HIPO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Hippo Reports Third Quarter 2026 Financial Results October 29, 2026 SAN JOSE, Calif. (PRNewswire) -- Hippo Holdings Inc. (NYSE: HIPO), a technology-native insurance platform reported net income of $9 million, or $0.33 per diluted share and adjusted net income of $20 million, or $
How this was made
The 30-second read
Why it matters
The earnings beat and updated guidance suggest a positive short‑term catalyst, though the lower net retention rate may limit upside.
Market read
The release provides fresh data for traders to assess Hippo's valuation and sector positioning.
What to watch
The net retention rate missed full‑year guidance, which could temper enthusiasm.
Hippo Reports Third Quarter 2026 Financial Results
Gross Written Premium increased 60.1%, revenue grew 29.4%, adjusted net income increased 9.3%, and the combined ratio improved to 98.4%. GAAP net income declined versus the prior-year quarter, primarily because the prior year included a $91 million net gain on sale of the home builder distribution network.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Gross Written Premium, three months ended September 30, 2026other | $498.1M | – | 60.1% |
| Net Written Premium, three months ended September 30, 2026other | $149.1M | – | 26% |
| Net Retention, three months ended September 30, 2026other | 30 % | – | – |
| Total Revenue, three months ended September 30, 2026GAAP | $156M | – | 29.4% |
| Net earned premium, three months ended September 30, 2026GAAP | $128.3M | – | 29% |
| Commission income, net, three months ended September 30, 2026GAAP | $15.6M | – | – |
| Service and fee income, three months ended September 30, 2026GAAP | $4.1M | – | – |
| Net investment income, three months ended September 30, 2026GAAP | $8M | – | – |
| Net income attributable to Hippo, three months ended September 30, 2026GAAP | $8.8M | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $20M | – | 9.3% |
| Basic earnings per share, three months ended September 30, 2026GAAP | $0.33 | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $0.33 | – | – |
| Diluted adjusted earnings per share, three months ended September 30, 2026non-GAAP | $0.74 | – | – |
| Annualized adjusted return on equity, three months ended September 30, 2026non-GAAP | 17.1 % | – | – |
| Net loss ratio, three months ended September 30, 2026other | 56.7 % | – | – |
| Catastrophe losses ratio, three months ended September 30, 2026other | 6.5 % | – | – |
| Expense ratio, three months ended September 30, 2026other | 41.7 % | – | improved 10 percentage points |
| Combined ratio, three months ended September 30, 2026other | 98.4 % | – | improved 1 percentage point |
| Net accident year loss ratio excluding catastrophe losses, three months ended September 30, 2026other | 49.9 % | – | – |
| Total expenses, three months ended September 30, 2026GAAP | $147.1M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $8.9M | – | – |
| Gross Written Premium, nine months ended September 30, 2026other | $1.31B | – | 60 % |
| Net Written Premium, nine months ended September 30, 2026other | $433.7M | – | 33 % |
| Total Revenue, nine months ended September 30, 2026GAAP | $422.2M | – | – |
| Net income attributable to Hippo, nine months ended September 30, 2026GAAP | $26M | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $58.2M | – | – |
| Diluted adjusted earnings per share, nine months ended September 30, 2026non-GAAP | $2.19 | – | – |
| Combined ratio, nine months ended September 30, 2026other | 97.9 % | – | – |
| Book Value Per Share, as of September 30, 2026GAAP | $17.62 | – | up 3.8% from year-end 2025 |
| Tangible Book Value Per Share, as of September 30, 2026non-GAAP | $15.59 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Single reportable segmentThe Company has a single reportable segment and offers property & casualty insurance products. | $156M | – | 29.4% |
| Homeowners Gross Written Premium, three months ended September 30, 2026Gross Written Premium by line of business. | $112.2M | – | 11 % |
| Renters Gross Written Premium, three months ended September 30, 2026Gross Written Premium by line of business. | $73.9M | – | 25 % |
| Commercial Multi-Peril Gross Written Premium, three months ended September 30, 2026Gross Written Premium by line of business. | $107.8M | – | 63 % |
| Casualty Gross Written Premium, three months ended September 30, 2026Gross Written Premium by line of business. | $187.6M | – | 146 % |
| Other Gross Written Premium, three months ended September 30, 2026Gross Written Premium by line of business. | $16.6M | – | 93 % |
| Homeowners Net Written Premium, three months ended September 30, 2026Net Written Premium by line of business. | $74M | – | (2) % |
| Renters Net Written Premium, three months ended September 30, 2026Net Written Premium by line of business. | $28.8M | – | 9 % |
| Commercial Multi-Peril Net Written Premium, three months ended September 30, 2026Net Written Premium by line of business. | $20.4M | – | 50 % |
| Casualty Net Written Premium, three months ended September 30, 2026Net Written Premium by line of business. | $19.7M | – | NM |
| Other Net Written Premium, three months ended September 30, 2026Net Written Premium by line of business. | $6.2M | – | NM |
| Homeowners Net Earned Premium, three months ended September 30, 2026Net Earned Premium by line of business. | $66.1M | – | 3 % |
| Renters Net Earned Premium, three months ended September 30, 2026Net Earned Premium by line of business. | $19.1M | – | 2 % |
| Commercial Multi-Peril Net Earned Premium, three months ended September 30, 2026Net Earned Premium by line of business. | $25.9M | – | 88 % |
| Casualty Net Earned Premium, three months ended September 30, 2026Net Earned Premium by line of business. | $15.9M | – | 397 % |
| Other Net Earned Premium, three months ended September 30, 2026Net Earned Premium by line of business. | $1.3M | – | NM |
Updated 2026 FY Guidance outlook
- Revenue$585 - $590M
- NoteGross Written Premium: $1.7 - $1.75B
- NoteNet Written Premium: $565 - $580M
- NoteCombined Ratio: 97% - 98%
- NoteCAT Loss Ratio: 8 %
- NoteAdjusted Net Income (Loss): $77 - $80M
- NoteStock-based compensation + Depreciation and Amortization: $42M
Capital returns
- Share repurchases under program, nine months ended September 30, 2026: —
- Proceeds from issuance of common stock, nine months ended September 30, 2026: $2.5 million
What drove it
- All lines of business delivered growth, led by Casualty and Commercial Multi-Peril lines.
- Revenue growth was primarily driven by higher net earned premium, net investment income, commission income and service and fee income.
- Expense-ratio improvement reflected continued operating leverage and expense discipline.
- Net Earned Premium growth of 29% compared to expense base growth of 12% accounted for 9 percentage points of expense-ratio improvement.
- Fast-growing Casualty and Commercial Multi-Peril lines had the lowest retention levels, causing net written premium growth to lag gross written premium growth.
- The prior-year quarter included a $91 million net gain on sale of the home builder distribution network.
Concerns
- Net loss ratio was 56.7 % versus 47.6 % in the prior-year quarter, driven by a more normalized level of CAT losses.
- CAT Loss Ratio was 6.5% compared to (0.3)% in 3Q25.
- The quarter's 30% net retention rate was slightly lower than full-year guidance of approximately mid-30s.
- GAAP net income was $8.8 million compared with $98.1 million in the prior-year quarter.
- Annualized adjusted return on equity was 17.1 % compared with 19.4 % in the prior-year quarter.
What to watch
- Delivery against updated 2026 FY Gross Written Premium guidance of $1.7 - $1.75B.
- Delivery against updated 2026 FY revenue guidance of $585 - $590M.
- Delivery against updated 2026 FY combined-ratio guidance of 97% - 98% and CAT Loss Ratio guidance of 8 %.
- Net retention relative to the approximately mid-30s full-year guidance.
- Growth and underwriting performance in Casualty and Commercial Multi-Peril.
- Delivery against updated adjusted net income guidance of $77 - $80M.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $311.8 million; December 31, 2025: $218.3 million.
- Restricted cash as of September 30, 2026: $15.0 million; December 31, 2025: $31.8 million.
- Total investments as of September 30, 2026: $499.1 million; December 31, 2025: $445.9 million.
- Total assets as of September 30, 2026: $2,752.2 million; December 31, 2025: $1,905.5 million.
- Surplus note as of September 30, 2026: $47.9 million; December 31, 2025: $47.9 million.
- Total stockholders’ equity as of September 30, 2026: $469.0 million; December 31, 2025: $436.1 million.
- Net cash provided by operating activities, nine months ended September 30, 2026: $124.2 million; 2025: $6.0 million.
- Net cash used in investing activities, nine months ended September 30, 2026: $(51.5) million; 2025: $14.5 million.
- Net cash provided by financing activities, nine months ended September 30, 2026: $4.0 million; 2025: $18.9 million.
- Cash, cash equivalents, and restricted cash at the end of the period, nine months ended September 30, 2026: $326.8 million; 2025: $272.2 million.
Analysis
Hippo reported a strong underlying underwriting and growth quarter. Gross Written Premium increased 60.1% to $498.1 million, while total revenue grew 29.4% to $156.0 million. Growth was broad across the business, with Casualty Gross Written Premium of $187.6 million, up 146 %, and Commercial Multi-Peril Gross Written Premium of $107.8 million, up 63 %. Net written premium increased 26% to $149.1 million, trailing gross written premium because Casualty and Commercial Multi-Peril carry the lowest retention levels.
Profitability improved on an adjusted and underwriting basis. Adjusted net income increased 9.3% to $20.0 million and diluted adjusted earnings per share was $0.74, compared with $0.70. The combined ratio improved 1 percentage point to 98.4 %, as the expense ratio improved to 41.7 % from 52.0 %. Management attributed 9 percentage points of expense-ratio improvement to net earned premium growth of 29% compared with expense base growth of 12%.
The loss experience was less favorable than the prior-year quarter because catastrophe losses normalized. The net loss ratio was 56.7 % compared with 47.6 %, and the CAT Loss Ratio was 6.5% compared with (0.3)% in 3Q25. The prior-year period also benefited from 0.5% favorable prior year development. The net accident year loss ratio excluding CAT losses was 49.9 % compared with 48.4 %, showing the effect of catastrophe losses separately from the underlying accident-year loss ratio.
GAAP net income attributable to Hippo was $8.8 million, compared with $98.1 million, because last year's results included a $91 million net gain on sale of the home builder distribution network. Balance-sheet liquidity expanded, with cash and cash equivalents of $311.8 million and total investments of $499.1 million. Net cash provided by operating activities for the nine months ended September 30, 2026 was $124.2 million, compared with $6.0 million in 2025.
The updated full-year outlook calls for Gross Written Premium of $1.7 - $1.75B, revenue of $585 - $590M, a combined ratio of 97% - 98%, and adjusted net income of $77 - $80M. The updated targets place emphasis on sustaining underwriting profitability while expanding the diversified MGA and program portfolio. The 30% quarterly net retention rate, slightly lower than full-year guidance of approximately mid-30s, remains relevant as commercial-line growth becomes a larger component of premium production.
Management, verbatim
Hippo had a strong quarter, delivering a 98% Combined Ratio, a one-point improvement over last year, despite a 7-point headwind from more normalized CAT losses compared to none in the prior-year quarter.
Rick McCathron, Hippo President and CEO
These results reflect the foundation we’ve built: underwriting discipline, a diversified portfolio, and a program platform built for long-term partnerships.
Rick McCathron, Hippo President and CEO
Not in the filing
stated, not guessed- GAAP operating income or loss was not reported.
- Non-GAAP operating income or loss was not reported.
- Gross margin was not reported.
- Free cash flow was not reported.
- Dividend amount was not reported.
- A prior-quarter comparison for reported third-quarter metrics was not reported.
- Prior guidance comparison is not provided because a previous earnings release outlook was not supplied.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Hippo Holdings Inc. (NYSE:HIPO) released its Q3 2026 earnings via an SEC Form 8‑K, providing financial results and FY guidance.
Ticker impact
Hippo reported Q3 net income of $9 M and issued updated guidance for FY2026 revenue and combined ratio.
likely modest upside as the market prices in the updated guidance and profit beat.
The fresh earnings numbers and FY guidance are primary disclosures; investors typically react positively to profit and guidance improvements.
Market effects
Insurance tech sector may see renewed interest as Hippo shows profitability growth.
U.S. insurers could benefit from demonstrated underwriting discipline.
Limited to U.S. and North American insurance markets.
Counterpoint
If investors focus on the higher CAT loss ratio, they may view the results as a warning sign.
Key entities
- companyHippo Holdings Inc.
Technology‑native insurance platform reporting Q3 2026 results.
