Hippo Holdings delivered a major turnaround in the third quarter, reporting $98.1 mn in net income compared with an $8.5 mn loss a year earlier.
The swing came largely from the sale of a homebuilder distribution network and a stronger underwriting performance.
The sale generated a $91 mn net gain, providing a one-time lift that capped what CEO Rick McCathron called a “breakout quarter.” Gross written premium surged 33% year over year to $311 mn, up from $234 mn.
Growth came mostly from casualty and commercial multiperil lines, which jumped 137% and 123%, respectively.
Those gains outweighed a 9% decline in homeowners, now down to 32% of Hippo’s portfolio from 47% last year, as the company continues pivoting toward diversified lines with steadier margins.
Underwriting metrics also moved sharply in the right direction. The combined ratio improved to 100 from 127.9, while the net loss ratio fell to 47.6 from 73.1.
Hippo attributed the better results to a lighter catastrophe season and tighter expense management.
McCathron said the performance reinforces the company’s long-term strategy. “We’re building a sustainable model with consistent underwriting discipline and product mix balance,” he said.
Earlier in the year, Hippo recorded its first-ever positive net income from operations during the second quarter – $1.3 mn compared with a $41 mn loss a year prior.
That result was driven by broader premium diversification and stronger pricing actions.
This latest quarter pushes that trend forward. The combination of improved underwriting, strategic asset sales, and leaner operations signals a company moving past its startup-era volatility and into something resembling stability – maybe even profitability that lasts.
Hippo reported its first-ever positive net income in Q2 2025, closing the quarter with $1 mn in profit. Gross written premium reached $299mn, up 16% from $258mn a year earlier. Growth came primarily from the company’s hybrid fronting strategy.
This milestone reflects a combination of revenue growth, a broader premium mix, a lower consolidated net loss ratio, stronger operating efficiency, and reduced stock-based compensation costs.
Quarterly operating expenses for sales and marketing, tech and development, and general and administrative functions fell by $6mn compared to Q2 2024 — a 16% year-over-year drop.
Existing programs added $24mn in organic growth (up 13%), while new programs contributed another $23mn.
Meanwhile, gross written premiums for Hippo’s core home insurance product declined 9% year-over-year.
