Third Quarter 2026
Filed Oct 28, 2026Hippo 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.