Hippo Holdings Inc. reported a return to profitability in its third quarter of 2025, posting net income of $98.1 million and GAAP earnings per share of $3.77. Adjusted net income rose to $18.3 million, with an adjusted EPS of $0.70, marking the company’s first profitable quarter in several years.
Revenue reached $120.6 million, up 26% from $95.5 million a year earlier and beating the consensus estimate of $118.5 million. The lift was driven by a 33% increase in gross written premium, largely from the commercial multi‑peril and casualty lines that grew 30% and 25% respectively. The integration of Westwood Insurance Agency added 12% of new home‑closing volume, further supporting premium growth.
Hippo’s net loss ratio fell to 48% from 73% in Q3 2024, a 25‑percentage‑point improvement that reflects lower catastrophe losses, tighter underwriting, and a shift toward higher‑margin commercial products. The combined ratio improved to 100% from 128% a year earlier, underscoring stronger underwriting discipline and cost control.
Net written premium for the quarter was $118.9 million, up 7% from $110.8 million in Q2 2025 and 24% from $95.5 million in Q3 2024. Net earned premium was $100 million, a 5% increase from $95 million in the prior quarter and 5% higher than the $95 million reported in Q3 2024. The gains in earned premium were driven by higher claim‑adjusted loss ratios in the commercial lines and a modest decline in homeowners losses.
President and CEO Rick McCathron highlighted the company’s disciplined, technology‑enabled platform, noting that “we grew gross written premium by 33%, expanded our platform to 36 programs, and delivered significantly improved underwriting results, including a 25‑point improvement in our net loss ratio.” He added that the Westwood integration will “triple our access to annual new home closings, fueling both premium growth and additional geographic diversification.”
Hippo raised its full‑year 2025 revenue guidance to $4.4 billion from $4.14 billion, and adjusted operating income guidance to $2.15 billion from $1.95 billion, reflecting confidence in continued premium growth and margin expansion. The company also reiterated its target of $2 billion in premiums within three years, underscoring a long‑term growth strategy anchored in technology and diversification.
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