Hippo (HIPO) Q2 2026 earnings summary

Executive summary

• Achieved net income of $10 million for Q2 2026, up from $1 million in Q2 2025, and adjusted net income of $21 million, a 23.5% increase year-over-year.

• Gross written premium (GWP) rose 61% year-over-year to $482 million, with strong growth in Casualty (+177%) and Commercial Multi-Peril (+65%) lines.

• Revenue increased 23% year-over-year to $145 million, driven by higher net earned premium and diversified income streams.

• Combined ratio improved by 4 points to 95.8%, reflecting better underwriting and expense discipline.

• Continued focus on underwriting discipline, diversified growth, and operational efficiency.

Financial highlights

• Net written premium grew 71% year-over-year to $183 million, outpacing GWP growth due to reinsurance structure changes.

• Net loss ratio increased to 50.4% from 47.0% in Q2 2025, while accident year net loss ratio excluding CAT losses improved to 45.8%.

• Expense ratio improved to 45.4% from 53.1% year-over-year, supporting a combined ratio of 95.8%.

• Book value per share rose 4% to $17.65 since year-end 2025; tangible book value per share reached $15.56.

• Annualized adjusted return on equity was 18.4% for the quarter.

Outlook and guidance

• Updated 2026 full-year guidance: GWP of $1.65–$1.7 billion, net written premium of $565–$580 million, revenue of $580–$585 million, and adjusted net income of $62–$70 million.

• Combined ratio guidance improved to 99–101% (from 103–105%), and CAT loss ratio guidance reduced to 10%.

• Long-term GWP target raised to over $2.5 billion by 2028, reflecting a 32% CAGR.

• Management expects continued portfolio diversification, with a lower proportion of homeowners insurance and increased focus on less catastrophe-exposed lines.

• Sufficient liquidity to fund operations for at least the next twelve months.