Hippo reports net income of $98m for Q3’25, up from net loss of $9m last year

Home insurance firm Hippo reported net income of $98 million for the third quarter of 2025, compared to a net loss of $9 million last year, driven by a $91 million net gain on the sale of the homebuilder distribution network and improved underwriting results.

For the quarter, Hippo’s adjusted net income is $18 million, compared to a $1 million net adjusted loss in Q3 of last year.

This was supported by a 33% increase in the firm’s gross written premium for the quarter to $311 million, compared to $234 million in Q3’24. This growth was driven by both the Casualty and CMP lines, which were up 137% and 123% over last year, to $76 million and $66 million, respectively.

Additionally, Hippo’s net written premium of $118 million grew by $27 million or 30% from $90.6 million in Q3’24, driven by the Renters line, which grew by $18 million year over year.

This quarter saw a revenue growth of 26% to $121 million from $96 million in Q3’24, driven by higher net earned premium up 41% to $100 million, which more than offset a $5 million reduction in commissions following the sales of First Connect and the firm’s homebuilder distribution network over the last year.

Additionally, net loss ratio improved by 25 percentage points to 48% in Q3’25 from 73% in the comparable quarter, due to the lack of “meaningful catastrophe losses” in this quarter compared to Q3’24.

Lastly, the combined ratio also improved by 28 percentage points to 100% from 128% in Q3’24, benefiting from improved underwriting results, including a 3% improvement to the expense ratio.

Overall, Hippo’s total investments rose to $420 million in the third quarter of 2025, up from $373.3 million in the same period of 2024.

Rick McCathron, President and Chief Executive Officer, Hippo, commented: “Q3 was a breakout quarter for Hippo as we continued to execute with discipline and momentum across every part of the business.

“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. We’re operating as a unified, technology-native platform that’s driving profitable growth, deepening diversification, and positioning us for long-term success.”