Hippo Raises 2026 Outlook as Q3 Premiums Jump 60%

Hippo Holdings Inc. (NYSE: HIPO) raised several full-year 2026 targets after third-quarter gross written premium jumped 60% and revenue increased 29%, supported by rapid expansion in casualty and commercial multi-peril insurance. The insurer also reported a sub-100% combined ratio and higher adjusted net income, while improved operating leverage offset a higher loss ratio.

Hippo now expects 2026 gross written premium of $1.70 billion to $1.75 billion, compared with its prior range of $1.65 billion to $1.70 billion. Revenue is projected at $585 million to $590 million, up from the previous $580 million to $585 million range.

The company tightened its combined-ratio outlook to 97% to 98% from 99% to 101% and increased its adjusted net income forecast to $77 million to $80 million from $62 million to $70 million. Its expected catastrophe loss ratio was reduced to 8% from 10%. Net written premium guidance remained unchanged at $565 million to $580 million.

Premium growth broadens beyond homeowners

Gross written premium reached $498.1 million in the third quarter, up from $311.2 million a year earlier. Net written premium increased to $149.1 million from $117.9 million, while net earned premium rose to $128.3 million from $99.7 million.

Growth was concentrated in commercial multi-peril and casualty products, continuing Hippo’s diversification beyond homeowners insurance. Casualty gross written premium climbed to $187.6 million from $76.3 million, with existing-program premium increasing 128%. The company said casualty pricing was exceeding loss-cost trends and expects retention to normalize in the mid-teens during 2026.

Commercial multi-peril gross written premium rose 63% to $107.8 million from $66.0 million. Hippo expects full-year retention for the line, which includes business owners’ policies and commercial property, to be in the low-20% range.

Homeowners gross written premium increased to $112.2 million from $101.0 million. Renewal premium was 14% higher than a year earlier, with national distribution partners contributing to growth. Hippo said it had expanded homeowners quoting for existing properties through national partners into 14 new states. The company also reported an 89% first-notice-of-loss success rate for Clara, its AI claims agent.

Renters gross written premium rose to $73.9 million from $59.3 million, while other lines increased to $16.6 million from $8.6 million.

For the first nine months of 2026, gross written premium increased 60% to $1.31 billion and revenue rose 21% to $422.2 million. Year-to-date net written premium was $433.7 million, compared with $325.1 million in the prior-year period.

Expense efficiency supports underwriting result

Third-quarter revenue rose to $156.0 million from $120.6 million. Hippo said revenue grew 29% while expenses increased 12%, helping reduce the net expense ratio to 41.7% from 52.0% a year earlier. The company attributed the operating leverage to factors including AI-supported customer service, higher commission and fee income, vendor consolidation and data-routing optimization.

The combined ratio improved to 98.4% from 99.6%, indicating an underwriting profit before investment and other income. The improvement came despite the net loss ratio rising to 56.7% from 47.6%. The catastrophe loss ratio was 6.5%, compared with negative 0.3% a year earlier, while the accident-year loss ratio excluding catastrophes increased to 49.9% from 48.4%.

For the first nine months, the combined ratio improved to 97.9% from 118.3%, largely reflecting a decline in the catastrophe loss ratio to 6.0% from 22.1% and a lower expense ratio. The year-to-date net loss ratio was 52.1%, compared with 65.6% a year earlier.

Hippo reported third-quarter net income attributable to the company of $8.8 million, or $0.33 per diluted share, compared with $98.1 million, or $3.77 per diluted share, in the prior-year quarter. The 2025 result included a $95 million gain on the sale of a business.

Adjusted net income, which excludes items including depreciation and amortization and stock-based compensation, increased to $20.0 million from $18.3 million. Diluted adjusted earnings were $0.74 per share, compared with $0.70. Annualized adjusted return on equity was 17.1%, versus 19.4% a year earlier.

Stockholders’ equity stood at $469 million at quarter-end. Book value per share was $17.62, up 4% from the end of 2025, while non-GAAP tangible book value per share reached $15.59.

Longer-term targets and risks

Hippo maintained its 2028 targets of more than $2.5 billion in gross written premium and more than $140 million in adjusted net income. The company’s long-term loss-ratio target remains 60% to 65%, supported by a strategy focused on portfolio diversification, distribution technology and risk management.

Those targets and the 2026 outlook are forward-looking. Hippo identified uncertainty from catastrophe losses and severe weather, loss-cost trends, underwriting and pricing accuracy, reinsurance availability and cost, regulatory requirements, cybersecurity and third-party service disruptions. The company also noted execution risks related to managing growth, expanding products and markets, and deploying artificial intelligence and machine-learning technology.