Hippo (HIPO) investor relations material

Executive summary

• Achieved net income of $7.1 million in Q1 2026, reversing a $47.7 million loss in Q1 2025, with adjusted net income at $17.2 million versus a $35.1 million adjusted net loss year-over-year.

• Gross written premium rose 58% to $332 million, driven by strong growth in Casualty (up 193%) and Commercial Multi-Peril (up 89%) lines.

• Revenue increased 10% to $122 million, primarily from higher net earned premium, offsetting a decline in commissions after the sale of the homebuilder distribution network.

• Combined ratio improved to 99.5% from 159.2% year-over-year, reflecting better underwriting and lower catastrophe losses.

• Technology advancements included the launch of the AI-powered claims assistant "Clara," driving 30% efficiency gains in claims processing and further automation in service, underwriting, and operations.

Financial highlights

• Net written premium grew 1% to $101 million, with net retention at 31%, slightly below full-year guidance due to a one-time unearned premium adjustment in Renters.

• Adjusted net income equated to a 16% annualized adjusted return on average shareholders' equity.

• Book value per share rose to $17.23, up 2% from year-end 2025; tangible book value per share increased to $15.09.

• Net earned premium increased 13% to $99 million; net investment income rose 16% to $6.7 million.

• Catastrophe losses were $4.3 million, down from $53.4 million in the prior year quarter.

Outlook and guidance

• 2026 full-year guidance: gross written premium $1.45–$1.525 billion, net written premium $520–$550 million, revenue $560–$570 million.

• Combined ratio expected at 103–105%, CAT loss ratio at 13%, and adjusted net income $48–$56 million.

• On track for 2028 targets: $2 billion GWP, $125 million adjusted net income, 18% adjusted ROE.

• Sufficient liquidity and capital resources projected to fund operations for at least the next twelve months.