By Josh Recamara
Hippo Holdings posted Q3 consolidated net earnings per diluted share of $3.77 and adjusted earnings per share of $0.70 for the quarter ended September 30, 2025.
Gross written premium rose 33% year-over-year to $311 million, while revenue increased 26% to $121 million. Hippo reported a net income of $98 million, compared to a net loss of $9 million in the same quarter last year, primarily driven by a $91 million gain from the sale of its homebuilder distribution network and improved underwriting results. Adjusted net income stood at $18 million versus an adjusted loss of $1 million in Q3 2024.
The company’s underwriting metrics also showed notable improvement. The net loss ratio improved by 25 percentage points to 48%, while the combined ratio declined to 100%, reflecting a break-even underwriting position. This was attributed to the absence of significant catastrophe losses, rate actions, and increased diversification across the portfolio. Homeowners business accounted for 32% of total gross written premium, down from 47% a year earlier, as Hippo continued to expand its Casualty and Commercial Multi-Peril (CMP) lines, which grew 137% and 123% respectively.
Rick McCathron, Hippo’s president and CEO, said Q3 marked “a breakout quarter” for the company.
Book value per share rose 14% to $16.64 as of Sept. 30, supported by stronger earnings and a disciplined capital management approach, including share repurchases.
Looking ahead, the company updated its full-year guidance to reflect continued profitability, forecasting gross written premiums of between $1.09 billion and $1.11 billion, and net income of $53 million to $57 million for 2025.
Across the broader U.S. insurance market, carriers have been working to improve underwriting performance amid ongoing economic and climate-related pressures. Many insurers have shifted focus toward profitability and pricing discipline, particularly in property and homeowners lines where inflation, reinsurance costs, and catastrophe exposure have tightened margins. Hippo’s move toward diversification and its technology-driven efficiency mirror a wider industry trend of managing volatility through smarter risk selection and expense control.
Compared with peers in the insurtech space, Hippo’s results place it ahead of many competitors in profitability and underwriting metrics. Lemonade Inc. reported a 42% year-over-year increase in Q3 revenue to $194.5 million and a narrower loss per share of $0.51, with a gross loss ratio of around 62%. Root Inc., meanwhile, posted a 26.9% year-over-year revenue increase in its digital auto segment but remains in loss territory. By contrast, Hippo’s net loss ratio of 48% and combined ratio of 100% indicate stronger underwriting discipline and a successful pivot toward profitable growth — a notable milestone in the insurtech sector where many players continue to operate at a loss.
Overall, Hippo’s performance suggests that its strategic restructuring and focus on operational efficiency are paying off. The insurer’s improvement in core metrics and its first profitable quarter in years signal a potential inflection point, positioning it as one of the more stable and scalable technology-enabled insurers in the U.S. market.