HIPO · Hippo Holdings Inc.

Hippo Holdings Inc. delivered strong Q1 2026 results, marking continued progress toward profitability as a technology-native insurance carrier. Gross written premium surged 58% year-over-year to $332 million, fueled by explosive growth in Casualty (193% to $101 million, 30% of GWP) and Commercial Multi-Peril (89% to $96 million, 29% of GWP), alongside stabilization in Homeowners at $87 million. This diversification reduced reliance on any single line, with Homeowners at 26% of GWP. Net written premium grew modestly 1% to $101 million, reflecting a lower 31% retention rate due to a one-time unearned premium adjustment in Renters, though management expects normalization later in the year.

Underwriting performance shone, with combined ratio improving 60 points to 99.5%, driven by a 58-point drop in net loss ratio to 48.0%—primarily from avoiding last year's $45 million California wildfire losses (CAT losses just 4.3% vs 61.2%)—and a 2-point expense ratio improvement to 51.5% via operating leverage. Revenue rose 10% to $122 million, led by 13% higher net earned premium ($99 million), offsetting lower commissions post-homebuilder network sale. This underpinned GAAP net income of $7.1 million ($0.27 diluted EPS) and adjusted net income of $17.2 million ($0.65 diluted EPS), equating to 16% annualized adjusted ROE.

Balance sheet strengthened, with shareholders' equity at $449 million ($17.23 BVPS, +2%) and total assets $2.06 billion. Management highlighted strategic distribution expansion via Progressive and Westwood partnerships, plus AI advancements like claims assistant 'Clara' for 30% efficiency gains. Updated FY2026 guidance reflects confidence, raising GWP to $1.45-1.525B and adjusted net income to $48-56M, maintaining combined ratio 103-105%. Rick McCathron, President and CEO, emphasized profitable growth and tech-driven scalability positioning Hippo for long-term success.