Hippo (HIPO) Q4 2025 earnings summary

Executive summary

• Achieved record Gross Written Premium of $1.1 billion in 2025, up 24% for the year and 40% in Q4 year-over-year.

• Net income for 2025 reached $58 million, reversing a $41 million loss in 2024, including a $91 million net gain from the sale of the Home Builder Distribution Network.

• Adjusted net income for 2025 was $18 million, up $38 million year-over-year, with a 17% annualized adjusted return on equity in Q4.

• Combined ratio improved by 25 points to 113% for the year and by 8 points to 99% in Q4, reflecting better loss and expense ratios.

• Book value per share increased 17% to $16.97 at year-end 2025.

Financial highlights

• Q4 Gross Written Premium grew 40% year-over-year to $288 million; full year up 24% to $1.1 billion.

• Q4 Net Income was $6 million ($0.23 per diluted share); full year Net Income was $58 million ($2.22 per diluted share).

• Q4 Adjusted Net Income rose 20% year-over-year to $18 million; full year Adjusted Net Income was $18 million, up $38 million year-over-year.

• Shareholders' equity at year-end was $436 million, up 17% from prior year.

• Annualized adjusted return on equity was 17% in Q4 2025.

Outlook and guidance

• 2026 Gross Written Premium expected to grow 27%-36% to $1.4-$1.5 billion.

• Net Written Premium projected to rise 19%-28% to $500-$540 million.

• Net Combined Ratio expected to improve by 8-10 points to 103%-105%.

• Adjusted Net Income guidance for 2026 is $45-$55 million.

• CAT loss ratio expected to improve to 13% in 2026.