Home insurance firm Hippo reported a 31% year over year increase in revenue to $117 million in the second quarter of 2025, driven by growth in gross earned premium and higher premium retention.
Gross written premium rose 16% to $299 million, supported by organic growth in existing business and the launch of new hybrid fronting programs.
Net Income attributable to Hippo was $1 million, up significantly compared to the net loss of $40 million in Q2’24.
The company posted a consolidated net loss ratio of 47%, representing a 46pp improvement from the prior year quarter, driven by underwriting and rate actions, improved claims operations, and favourable reserve releases.
HHIP’s net loss ratio improved by 58pp to 55%, reflecting a stronger gross loss ratio.
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HHIP non-PCS loss ratio improved by 28pp to 42%, while the PCS loss ratio improved by 30pp to 13%, including a 7pp benefit from favourable reserve releases.
Fixed expenses declined by $6 million in Q2’25, while revenue increased by $28 million, reflecting continued improvement in operational efficiencies.
Quarter over quarter, cash and investments, excluding restricted cash, increased $76 million to $604 million, primarily due to the issuance of a $50 million surplus note.
Rick McCathron, President and CEO of Hippo, said, “We stacked another strong quarter, with more than 30% revenue growth, a major improvement in our net loss ratio, and increased operating leverage—all of which helped us achieve positive net income from operating activities for the first time.
“We also announced a strategic partnership that will accelerate our growth and diversification, while strengthening our balance sheet with a $100 million capital infusion. In addition, we launched two exciting new commercial and casualty programs on our hybrid fronting platform, unlocking important new sources of diversification and profitability.”
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