Hippo Reports Second Quarter 2025 Financial Results
Hippo (NYSE: HIPO) reported strong Q2 2025 financial results, marking its first quarter with positive net income from operating activities. The company achieved 31% year-over-year revenue growth to $117 million and 16% growth in Gross Written Premium to $299 million.
Key highlights include a significant improvement in the consolidated net loss ratio to 47%, representing a 46 percentage point improvement year-over-year. The company's financial position strengthened with cash and investments reaching $604 million, boosted by a $50 million surplus note issuance. Hippo also reported net income of $1 million, compared to a $40 million loss in Q2 2024, and adjusted net income of $17 million.
Hippo (NYSE: HIPO) ha riportato solidi risultati finanziari nel secondo trimestre del 2025, segnando il suo primo trimestre con un reddito netto positivo derivante dalle attività operative. L'azienda ha registrato una crescita dei ricavi del 31% su base annua, raggiungendo 117 milioni di dollari, e una crescita del 16% del Premio Lordo Scritto a 299 milioni di dollari.
I punti salienti includono un significativo miglioramento del rapporto di perdita netto consolidato, sceso al 47%, con un miglioramento di 46 punti percentuali rispetto all'anno precedente. La posizione finanziaria della società si è rafforzata con liquidità e investimenti pari a 604 milioni di dollari, sostenuti dall'emissione di una nota surplus da 50 milioni di dollari. Hippo ha inoltre riportato un utile netto di 1 milione di dollari, rispetto a una perdita di 40 milioni nel secondo trimestre del 2024, e un utile netto rettificato di 17 milioni di dollari.
Hippo (NYSE: HIPO) anunció sólidos resultados financieros en el segundo trimestre de 2025, marcando su primer trimestre con ingreso neto positivo proveniente de actividades operativas. La empresa logró un crecimiento interanual de ingresos del 31% hasta 117 millones de dólares y un crecimiento del 16% en la Prima Bruta Suscrita hasta 299 millones de dólares.
Los aspectos destacados incluyen una mejora significativa en la tasa de pérdida neta consolidada, que se situó en 47%, representando una mejora de 46 puntos porcentuales respecto al año anterior. La posición financiera de la compañía se fortaleció con efectivo e inversiones alcanzando los 604 millones de dólares, impulsados por la emisión de una nota excedente de 50 millones de dólares. Hippo también reportó un ingreso neto de 1 millón de dólares, en comparación con una pérdida de 40 millones en el segundo trimestre de 2024, y un ingreso neto ajustado de 17 millones de dólares.
Hippo (NYSE: HIPO)는 2025년 2분기 강력한 재무 실적을 보고하며 영업활동에서 순이익을 기록한 첫 분기가 되었습니다. 회사는 전년 동기 대비 31% 매출 성장으로 1억 1,700만 달러를 달성했고, 총 인수 보험료는 16% 증가하여 2억 9,900만 달러를 기록했습니다.
주요 성과로는 통합 순손실률이 47%로 대폭 개선되어 전년 대비 46%포인트 향상된 점이 있습니다. 현금 및 투자 자산은 6억 400만 달러에 이르며, 5,000만 달러의 잉여채권 발행으로 강화되었습니다. Hippo는 또한 2분기 2024년 4,000만 달러 손실과 비교해 100만 달러의 순이익과 조정 순이익 1,700만 달러를 보고했습니다.
Hippo (NYSE : HIPO) a publié de solides résultats financiers pour le deuxième trimestre 2025, marquant son premier trimestre avec un revenu net positif provenant des activités opérationnelles. La société a enregistré une croissance du chiffre d'affaires de 31 % sur un an à 117 millions de dollars et une augmentation de 16 % de la prime brute souscrite à 299 millions de dollars.
Les points clés incluent une amélioration significative du ratio combiné net consolidé à 47 %, soit une amélioration de 46 points de pourcentage par rapport à l'année précédente. La position financière de l'entreprise s'est renforcée avec des liquidités et investissements atteignant 604 millions de dollars, soutenus par une émission de note excédentaire de 50 millions de dollars. Hippo a également déclaré un revenu net de 1 million de dollars, contre une perte de 40 millions au deuxième trimestre 2024, et un revenu net ajusté de 17 millions de dollars.
Hippo (NYSE: HIPO) meldete starke Finanzergebnisse für das zweite Quartal 2025 und verzeichnete damit sein erstes Quartal mit positivem Nettoergebnis aus operativer Tätigkeit. Das Unternehmen erzielte ein Umsatzwachstum von 31 % im Jahresvergleich auf 117 Millionen US-Dollar und ein Wachstum der Bruttobeitragseinnahmen um 16 % auf 299 Millionen US-Dollar.
Wichtige Highlights sind eine deutliche Verbesserung der konsolidierten Nettoverlustquote auf 47 %, was einer Verbesserung um 46 Prozentpunkte gegenüber dem Vorjahr entspricht. Die finanzielle Lage des Unternehmens wurde durch Bargeld und Investitionen in Höhe von 604 Millionen US-Dollar gestärkt, unterstützt durch die Ausgabe einer 50-Millionen-Dollar-Überliquiditätsanleihe. Hippo meldete zudem einen Nettogewinn von 1 Million US-Dollar im Vergleich zu einem Verlust von 40 Millionen US-Dollar im zweiten Quartal 2024 sowie einen bereinigten Nettogewinn von 17 Millionen US-Dollar.
- None.
- Heavy reliance on reinsurance indicated by the difference between gross and net metrics
- Continued operational losses when excluding one-time items and adjustments
- Significant regulatory and market risks highlighted in forward-looking statements
Insights
Hippo delivers first-ever operating profit amid 31% revenue growth and dramatically improved loss ratios, signaling potential turnaround.
Hippo's Q2 2025 results mark a potential inflection point in the company's trajectory, with revenue growing 31% YoY to $117 million while achieving positive net income for the first time at $1 million (compared to a $40 million loss in Q2'24). The insurance tech company demonstrated meaningful improvements across key operational metrics.
The most striking development is the dramatic improvement in Hippo's consolidated net loss ratio to 47%, representing a remarkable 46 percentage point year-over-year improvement. This substantial enhancement in underwriting performance stems from better claims operations, underwriting adjustments, rate actions, and favorable reserve releases. The Hippo Home Insurance Program (HHIP) segment showed even more dramatic improvement with a 58 percentage point reduction in its net loss ratio to 55%.
On the efficiency front, Hippo reduced fixed expenses by $6 million while growing revenue by $28 million, demonstrating significant operating leverage. Fixed costs as a
Balance sheet strength improved with
The 16% increase in gross written premiums to $299 million shows healthy top-line momentum, with growth driven by both organic expansion and new hybrid fronting programs. The company's diversification strategy through new commercial and casualty programs represents a promising avenue for reducing volatility and enhancing profitability.
"We stacked another strong quarter, with more than
Complete financial results and full year guidance for 2025 can be found in the company's shareholder letter in the Investor Relations section of Hippo's website at https://investors.hippo.com/.
Second Quarter Highlights
Top-Line Momentum and New Program Launches
- Gross Written Premium up
16% YoY to$299m - Revenue grew
31% YoY to$117m
A Step-Change in Net Loss Ratio
- Consolidated Net Loss Ratio of
47% , a 46pp improvement YoY, powered by underwriting and rate actions, better claims operations, and favorable reserve releases - HHIP net loss ratio of
55% , a 58pp YoY improvement, driven by better gross loss ratio - HHIP non-PCS loss ratio of
42% , a 28pp improvement YoY; PCS loss ratio at13% , a 30pp improvement YoY, boosted 7pp by favorable reserve releases
Continued Operating Leverage Improvement
- Fixed expenses (S&M, T&D, G&A) declined by
$6m $28m - These costs decreased as a percentage of revenue by 16pp YoY from
46% in Q2'24 to30% in Q2'25
Significant Gain in Profitability Metrics
- Net Income attributable to Hippo of
$1m $40m - Adjusted Net Income of
$17m $20m
Financial Strength
- Cash and investments, excluding restricted cash, increased
$76m $604m $50m - Spinnaker surplus of
$223m $202m
Second Quarter Earnings Conference Call and Webcast Information
Date: Wednesday, August 6, 2025
Time: 8:00 a.m. Eastern Time / 5:00 a.m. Pacific Time
Dial In: +1 833 470 1428 / Global Dial-In Numbers
Access: 750648
Webcast: https://events.q4inc.com/attendee/257338623
A replay of the webcast will be made available after the call in the investor relations section of the company's website at https://investors.hippo.com/
Information about Key Operating Metrics/Non-GAAP Financial Measures
We define gross loss ratio expressed as a percentage, as the ratio of the gross losses and loss adjustment expenses, to the gross earned premium. We define net loss ratio expressed as a percentage, as the ratio of the net losses and loss adjustment expenses, to the net earned premium. We define adjusted net income (loss), a Non-GAAP financial measure, as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments which would be included in calculating our income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. We define adjusted EBITDA, a Non-GAAP financial measure, as net loss attributable to Hippo excluding interest expense, income tax expense, depreciation, amortization, stock-based compensation, net investment income, restructuring charges, impairment expense, gains and losses on sales of business, other non-cash fair market value adjustments, contingent consideration for one of our acquisitions, and other transactions, which may include certain legal fees and settlement costs, that we consider to be unique in nature. We exclude these items from Adjusted EBITDA because we do not consider them to be directly attributable to our underlying operating performance. These Non-GAAP financial measures are in addition to, and not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP. Reconciliations of these Non-GAAP financial measures to their most directly comparable GAAP counterpart is included in the shareholder letter referenced above. We believe that these non-GAAP measures of financial results provide useful supplemental information to investors about Hippo.
Forward-looking statements safe harbor
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial results and other operating and performance metrics, our business strategy, our cost reduction efforts, the quality of our products and services, and the potential growth of our business. These statements are based on the current expectations of Hippo's management and are not predictions of actual performance. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, and many actual events and circumstances are beyond the control of Hippo. These forward-looking statements are subject to a number of risks and uncertainties, including our ability to navigate extensive insurance industry regulations and the scrutiny of state insurance regulators, our ability to achieve or maintain profitability in the future; our ability to retain and expand our customer base and grow our business, including our builder network; our ability to manage growth effectively; risks relating to Hippo's brand and brand reputation; denial of claims or our failure to accurately and timely pay claims; the effects of intense competition in the segments of the insurance industry in which we operate; the availability and adequacy of reinsurance, including at current coverage, limits or pricing; our ability to underwrite risks accurately and charge competitive yet profitable rates to our customers, and the sufficiency of the analytical models we use to assess and predict exposure to catastrophe losses; risks related to our proprietary technology and our digital platform; outages or interruptions or delays in services provided by our third party providers, including our data vendors; risks related to our intellectual property; the seasonal and cyclical nature of our business; the effects of severe weather events and other natural or man-made catastrophes, including the effects of climate change, global pandemics, and terrorism; any overall decline in economic activity; regulators' identification of errors in the policy forms we use, the rates we charge, and our customer communications including, but not limited to, cancellations, non-renewals and reinstatements through market conducts, complaints, or other inquiries; the effects of existing or new legal or regulatory requirements on our business, including with respect to maintenance of risk-based capital and financial strength ratings, data privacy and cybersecurity, and the insurance industry generally; and other risks set forth in the sections entitled "Risk Factors" in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Hippo does not presently know, or that Hippo currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Hippo's expectations, plans, or forecasts of future events and views as of the date of this press release. Hippo anticipates that subsequent events and developments will cause Hippo's assessments to change. However, while Hippo may elect to update these forward-looking statements at some point in the future, Hippo specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Hippo's assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
About Hippo
Hippo is a technology-enabled insurance group that uses its hybrid fronting platform to diversify risk across both personal and commercial lines. Through the Hippo Homeowners Insurance Program, the company applies deep industry expertise and advanced underwriting to deliver proactive, tailored coverage for homeowners. Hippo Holdings Inc. subsidiaries include Hippo Insurance Services, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company, and Wingsail Insurance Company. Hippo Insurance Services is a licensed property casualty insurance agent with products underwritten by various affiliated and unaffiliated insurance companies. For more information, please visit http://www.hippo.com.
Contacts
Investors:
Sammy Ng
Investors@hippo.com
Press:
Mark Olson
press@hippo.com
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SOURCE Hippo Holdings Inc.
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