Hippo Holdings Inc Reports Fourth‑Quarter Results, Highlights Mixed Performance
Hippo Holdings Inc. (NYSE: HIPO) disclosed its consolidated financial results for the quarter ended December 31, 2025, noting a decline in net income compared with the same period in 2024. The company’s diluted earnings per share fell from $1.71 in Q4 2024 to $0.23 in Q4 2025, while diluted adjusted earnings per share dropped from $0.68 to $0.67. Net income attributable to Hippo was $6 million, a stark contrast to the $44 million earned in Q4 2024, largely driven by a $46 million one‑time gain on the sale of a home‑builder distribution network.
Key Quarterly Metrics
| Metric | Q4 2025 | Q4 2024 |
|---|---|---|
| Gross Written Premium | $287.9 million | $205.6 million |
| Net Written Premium | $97.2 million | $79.2 million |
| Net Retention | 34 % | 39 % |
| Net Loss Ratio | 45.9 % | 57.7 % |
| Expense Ratio | 53.5 % | 49.2 % |
| Combined Ratio | 99.4 % | 106.9 % |
| Net Income | $6.0 million | $44.2 million |
| Adjusted Net Income | $17.6 million | $14.7 million |
The company’s gross written premium grew 40 % year over year to $288 million, reflecting continued demand for its technology‑native insurance platform. Net written premium increased 23 % to $97 million, while net retention slipped to 34 %. The loss ratio improved by 12 percentage points to 46 %, and the combined ratio narrowed 8 points to 99 %, signalling progress in underwriting efficiency.
Full‑Year 2025 Performance
Hippo’s full‑year gross written premium rose 24 % to $1.108 billion from $892 million in 2024. Net written premium increased 13 % to $422 million. Net income attributable to Hippo totaled $58 million, reversing a $41 million loss in 2024, while adjusted net income reached $18 million versus an adjusted loss of $20 million in the prior year. The loss ratio fell 17 percentage points to 60 %, and the combined ratio improved 25 points to 113 %. Book value per share increased 17 % to $16.97 from $14.56 at the end of 2024.
Management Commentary
“We closed 2025 with strong momentum, evidenced by our 40 % gross written premium growth, positive net and adjusted income, and an underwriting profit in the fourth quarter,” said Rick McCathron, President and CEO. “Looking ahead to 2026, I am excited about Hippo’s prospects for increased diversification, strong growth, and continued improvement in profitability.” McCathron highlighted the relaunch of the homeowners business outside of builders with select partners, underscoring the company’s strategic focus on expanding its distribution footprint.
Outlook
The company has set targets of over $2 billion in gross written premium and $125 million in adjusted net income by the end of 2028. Hippo’s recent performance, particularly the narrowing of its combined ratio and the reversal of 2024 losses, positions it to pursue these objectives. Investors should monitor the company’s ability to maintain premium growth while improving retention and underwriting profitability, as these factors will determine whether Hippo can sustain its upward trajectory into the next fiscal year.
Financial data sourced from Hippo Holdings Inc.’s press release (Feb. 25, 2026) and the company’s quarterly reporting.
