Hippo (HIPO) Q3 2025 earnings summary

Executive summary

• Achieved net income of $98.1 million for Q3 2025, reversing a net loss in Q3 2024, driven by a $91–$95 million gain on the sale of the homebuilder distribution network and improved underwriting results.

• Adjusted net income reached $18.3 million, up from an adjusted net loss in Q3 2024, with a 19% annualized adjusted return on equity.

• Gross written premium grew 33% year-over-year to $311.2 million, with significant expansion in Casualty and Commercial Multi-Peril lines.

• Book value per share increased 14% from year-end 2024, reaching $16.64.

• Leadership strengthened with a new Chief Data Officer and two new board members, enhancing technology and insurance expertise.

Financial highlights

• Net written premium increased to $120.6 million, up 30% year-over-year, mainly driven by growth in the Renters line.

• Revenue increased 26% year-over-year to $121 million, with net earned premium up 41% to $100 million.

• Net income reached $98.1 million, or $3.77 per diluted share, driven by a $91–$95 million gain from the sale of the Home Builder Distribution Network.

• Adjusted net income was $18.3 million, or $0.70 per diluted share, a significant improvement year-over-year.

• Shareholders' equity rose to $422 million at quarter-end.

Outlook and guidance

• FY 2025 guidance: gross written premium of $1.09–$1.11 billion, revenue of $465–$468 million, net income of $53–$57 million, and adjusted net income of $10–$14 million.

• 2028 targets include over $2 billion in gross written premium, adjusted net income above $125 million, and adjusted ROE above 18%.

• Q4 2025 guidance: gross written premium of $269–$289 million, revenue of $117–$120 million, net loss ratio of 55–60%.

• Long-term net loss ratio target set at 60–65%.

• Management shifted focus to expense ratio, combined ratio, and diluted adjusted earnings per share for performance measurement.