Hippo reported higher premiums and revenue for the third quarter of 2026, alongside a small increase in adjusted profit. Net income fell sharply from a year earlier, however, largely because the prior-year quarter included a $91 million gain from selling its home-builder distribution network.
The insurer said growth came across its four main business lines: homeowners, renters, commercial multi-peril and casualty. Its combined ratio improved despite higher catastrophe losses, while its net loss ratio rose.
Key details
- Premiums and revenue grew: Gross written premium rose 60% year over year to $498 million. Net written premium increased 26% to $149 million, and revenue grew 29% to $156 million.
- Adjusted profit edged higher: Adjusted net income, a non-GAAP measure, rose 9% to $20 million, or $0.74 per diluted share. Hippo reported GAAP net income of $9 million, or $0.33 per diluted share, compared with $98 million a year earlier. The prior-year result included the $91 million sale gain.
- The combined ratio improved: The ratio was 98.4%, compared with 99.6% a year earlier. Hippo attributed the improvement to operating performance that offset a more normalized level of catastrophe losses; the catastrophe loss ratio was 6.5%, versus negative 0.3% in the prior-year quarter.
- Loss and expense trends diverged: The net loss ratio increased to 56.7% from 47.6%, while the expense ratio improved to 41.7% from 52.0%.
- Retention declined: Net retention was 30%, down from 38% a year earlier, even as net written premium increased.
- Book value rose: Book value per share was $17.62 at quarter-end, up from $16.97 at the end of 2025. Tangible book value per share was $15.59, compared with $14.76.
- Nine-month results showed similar premium growth: For the first nine months of 2026, gross written premium increased 60% to $1.31 billion, net written premium rose 33% to $434 million, and revenue grew 21% to $422 million. GAAP net income was $26 million, down from $52 million a year earlier, while adjusted net income was $58 million versus $0.2 million.
- The nine-month combined ratio improved substantially: It was 97.9%, compared with 118.3% in the first nine months of 2025. The net loss ratio fell to 52.1% from 65.6%, and the expense ratio declined to 45.8% from 52.7%.
Hippo’s results show the distinction between its underlying operating performance and the prior-year comparison: adjusted profit increased in the quarter, while GAAP net income dropped because of the earlier asset-sale gain. The company’s combined ratio was below 100% for both the quarter and the first nine months, while its lower retention rate indicates that a smaller share of written premium was retained.