Hippo Holdings Inc. Reports 31% Revenue Growth and Net Income Turnaround in Q2 2025

Hippo Holdings Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved total revenue of $117.3 million, a 31% increase from $89.6 million in the same quarter of the previous year. This growth was primarily driven by a 46% rise in net earned premiums, which reached $94.0 million compared to $64.4 million in the prior year. Despite the increase in revenue, Hippo recorded a net income of $1.3 million, a substantial turnaround from a net loss of $40.5 million in the same quarter of 2024.

In terms of operational metrics, Hippo's gross written premium for the second quarter of 2025 was $298.6 million, reflecting a 16% increase year-over-year. The company also reported a decrease in its net loss ratio to 47% from 94% in the previous year, indicating improved underwriting performance. The gross loss ratio also improved to 37% from 58%, benefiting from lower catastrophe losses and effective pricing strategies. The company’s total assets increased to $1.706 billion as of June 30, 2025, up from $1.543 billion at the end of 2024.

Strategically, Hippo has made notable changes, including the issuance of a $50 million surplus note in June 2025 to bolster its capital position. The company also announced the sale of its homebuilder distribution network to Westwood Insurance Agency, which is expected to close in July 2025, with a total sale consideration of $100 million. This move is part of Hippo's strategy to streamline operations and focus on its core insurance offerings. The company anticipates recording a gain of approximately $90 million from this transaction in its third quarter financials.

Operationally, Hippo's customer base continues to grow, with the company focusing on enhancing customer retention and expanding its service offerings. The Insurance-as-a-Service segment saw a 97% increase in revenue year-over-year, driven by higher premium retention and growth in its book of business. The company is also investing in technology and development, with expenses in this area rising slightly to $8.1 million for the quarter, reflecting its commitment to improving its digital platform.

Looking ahead, Hippo remains optimistic about its growth trajectory, emphasizing its focus on customer acquisition and retention strategies. The company plans to leverage its data and technology to enhance underwriting accuracy and reduce loss ratios. However, it acknowledges the challenges posed by regulatory changes and competitive pressures in the insurance market. Overall, Hippo's management is committed to navigating these challenges while pursuing its strategic objectives for sustainable growth.