Hippo Holdings Inc.
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
HIPO$34.89+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001828105-25-000036
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001828105-25-000055
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 172 previous paragraphs and 197 current paragraphs.
131 unchanged; 35 reworded; 28 added; 6 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 14 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (28)
Current report
Beginning in the second quarter of 2025, we are reporting adjusted net income as a performance measure in the management of our operations because we believe it gives our management and financial statement users useful insight into our results of operations and our underlying business performance. Adjusted net income does not reflect the overall profitably of our business and should not be viewed as a substitute for net income calculated in accordance with GAAP. Other companies may define adjusted net income differently.
Current report
Our Gross Written Premium for the six months ended June 30, 2025 increased 13% year-over-year to $509.5 million from $452.4 million for the six months ended June 30, 2024. The increase was driven primarily by the year-over-year growth in our Insurance-as-a-Service book of business.
Current report
Adjusted Net Income (Loss)
Current report
We define adjusted net income, a Non-GAAP financial measure, as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments which would be included in calculating our income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. We use adjusted net income as an internal performance measure in the management of our operations because we believe it gives our management and financial statement users useful insight into our results of operations and our underlying business performance. Adjusted net income does not reflect the overall profitably of our business and should not be viewed as a substitute for net income calculated in accordance with GAAP. Other companies may define adjusted net income differently.
Current report
For the three months ended June 30, 2025, adjusted net income was $17.0 million, a change of $36.5 million compared to a $19.5 million adjusted net loss for the three months ended June 30, 2024. The increase was due primarily to a decrease in our net loss ratio, partially offset by an increase in insurance related expenses due to the overall growth of our business.
Current report
For the six months ended June 30, 2025, adjusted net loss was $18.1 million, a decrease of $15.6 million compared to a $33.7 million adjusted net loss for the six months ended June 30, 2024. The decrease was due primarily to a decrease in our net loss ratio, partially offset by an increase in insurance related expenses due to the overall growth of our business.
Current report
Net income calculated in accordance with GAAP reconciles to adjusted net income as follows (in millions):
Current report
For the six months ended June 30, 2025, adjusted EBITDA loss was $29.3 million, a decrease of $15.4 million compared to a $44.7 million adjusted EBITDA loss for the six months ended June 30, 2024. The decrease was due primarily to a decrease in our net loss ratio, partially offset by an increase in insurance related expenses due to our overall growth of our business.
Current report
For the three months ended June 30, 2025, our Gross Loss Ratio was 37%, net of a prior year favorable development of 10 percentage points relating to non-PCS losses and 2 percentage points relating to PCS events, compared with 58%, net of a prior year favorable development of 5 percentage points relating to PCS events for the three months ended June 30, 2024. The decrease in non-PCS losses for the three months ended June 30, 2025 was due primarily to the benefits of the pricing and underwriting actions we have taken. The decrease in PCS losses for the three months ended June 30, 2025 was due primarily to lower catastrophe losses.
Current report
For the six months ended June 30, 2025, our Gross Loss Ratio was 65%, net of a prior year favorable development of 6 percentage points relating to non-PCS losses and 1 percentage point relating to PCS events, compared with 58%, net of a prior year favorable development of 2 percentage points relating to PCS events for the six months ended June 30, 2024. The increase was primarily due to an increase in PCS losses, of which 22 percentage points was due to a series of destructive wildfires that affected Los Angeles, California (the “LA Wildfires”), which occurred in the first quarter of 2025. This increase was partially offset by a decrease in non-PCS losses due primarily to benefits of the pricing and underwriting actions we have taken.
Current report
For the six months ended June 30, 2025, our net loss ratio was 75%, net of a prior year favorable development of 4 percentage points relating to non-PCS losses and 1 percentage point related to PCS events, compared with 91% net of a prior year favorable development of 2 percentage points relating to PCS events for the six months ended June 30, 2024. The decrease was primarily due to a decrease in non-PCS losses due to benefits of the pricing and underwriting actions we have taken. This was partially offset by an increase in PCS losses, of which 24 percentage points was due to the LA Wildfires, which occurred in the first quarter of 2025.
Current report
For the six months ended June 30, 2025, revenue was $86.9 million, an increase of 94% from $44.8 million over the prior year period. The growth was driven primarily by a combination of increased premium retention and the growth of our book of business. Adjusted operating income was $9.5 million, a decrease of 9% compared to income of $10.4 million in the prior year period, due primarily to the increase in loss and loss adjustment expenses, including the impact of the LA Wildfires of $10.0 million, which occurred in the first quarter of 2025, and insurance related expenses due to the growth of the book of business, partially offset by the increase in revenue.
Current report
For the six months ended June 30, 2025, our Hippo Homeowners Insurance Program had revenue of $122.5 million, an increase of 10% from $111.3 million over the prior year period. The increase in revenue was due primarily to higher net earned premium. Adjusted operating loss was $33.2 million in the period, a decrease of 28%, compared to a loss of $46.2 million in the prior year period. The decrease in adjusted operating loss was due primarily to an increase in revenue and improved net loss ratios.
Current report
For the three months ended June 30, 2025, HPGLR was 44%, net of prior year favorable development of 11 percentage points relating non-PCS losses and 2 percentage points relating to PCS events, compared to 84%, net of a prior year favorable development of 15 percentage points relating to PCS events, for the three months ended June 30, 2024. The decrease was due primarily to a decrease in our non-PCS losses due primarily to the benefits of the pricing and underwriting actions we have taken, and a decrease in PCS losses due to lower catastrophe losses.
Current report
For the six months ended June 30, 2025, HPGLR was 83% net of a prior year favorable development of 5 percentage points relating to non-PCS losses and 1 percentage point relating to PCS events, compared to 82% net of a prior year favorable development of 7 percentage points relating to PCS events. The improvement in our non-PCS loss ratio due primarily to the benefits of the pricing and underwriting actions we have taken, which was offset by an increase in our PCS loss ratio primarily due to the LA Wildfires, which occurred in the first quarter of 2025.
Current report
For the six months ended June 30, 2025, commission income was $29.1 million, a decrease of $2.9 million, or 9%, compared to $32.0 million for the six months ended June 30, 2024. The decrease was due primarily to a decrease in ceding commissions and fronting fees totaling $2.1 million due to higher premium retention, which decreases ceding commissions and increases net earned premium.
Current report
For the six months ended June 30, 2025, service and fee income was $5.7 million, a decrease of $0.1 million, or 2%, compared to $5.8 million for the six months ended June 30, 2024.
Current report
For the three months ended June 30, 2025, loss and loss adjustment expenses were $44.5 million, a decrease of $15.9 million, compared to $60.4 million for the three months ended June 30, 2024. The decrease was due primarily to a decrease in PCS losses driven by lower catastrophe losses, and a decrease in non-PCS losses driven by the benefits of the pricing and underwriting actions we have taken. Loss and loss adjustment expense for the three months ended June 30, 2025 also benefited from prior accident year reserve releases of $6.9 million, compared to $1.9 million in the same period in 2024.
Current report
For the six months ended June 30, 2025, loss and loss adjustment expenses were $136.9 million ,an increase of $23.9 million, compared to $113.0 million for the six months ended June 30, 2024. The increase was primarily due to an increase in PCS losses, of which $42.3 million was due to the LA Wildfires, partially offset by a decrease in non-PCS losses due to benefits of the pricing and underwriting actions we have taken. Loss and loss adjustment expense for the six months ended June 30, 2025 also benefited from prior accident year reserve releases of $9.9 million, compared to $1.9 million in the same six-month period in 2024.
Current report
For the six months ended June 30, 2025, insurance related expenses were $63.0 million, an increase of $17.7 million, or 39%, compared to $45.3 million for the six months ended June 30, 2024. The increase was due primarily to an increase in acquisition expenses, net of $16.9 million due to increased premium retention and the growth of our book of business.
Current report
For the six months ended June 30, 2025, technology and development expenses were $16.2 million, an increase of $0.1 million, or 1%, compared to $16.1 million for the six months ended June 30, 2024. The increase was due primarily to an increase in employee-related costs of $0.2 million.
Current report
For the three months ended June 30, 2025, sales and marketing expenses were $9.2 million, a decrease of $4.2 million, or 31%, compared to $13.4 million for the three months ended June 30, 2024. The decrease was due primarily to a decrease in employee-related costs of $2.7 million, including a decrease in stock-based compensation of $1.7 million due to a decrease in headcount. The decrease was also due to a decrease in amortization of acquired intangible assets of $0.8 million, which was fully amortized in the first quarter of 2025, and a decrease in advertising costs of $0.5 million.
Current report
For the six months ended June 30, 2025, general and administrative expenses were $33.9 million , a decrease of $4.3 million, or 11%, compared to $38.2 million for the six months ended June 30, 2024. The decrease was due primarily to a decrease in legal costs of $3.5 million and a decrease in facilities cost of $0.7 million.
Current report
For the six months ended June 30, 2025, impairment and restructuring charges were $1.2 million, a decrease of $2.4 million, or 67%, compared to $3.6 million for the six months ended June 30, 2024. The decrease was primarily related to the impairment of leased office space.
Current report
For the three months ended June 30, 2025, income tax expense was $0.1 million, a decrease of $0.6 million compared to $0.7 million for the three months ended June 30, 2024.
Current report
Net (Income) Loss Attributable to Hippo
Current report
For the three months ended June 30, 2025, net income attributable to Hippo was $1.3 million, a change of $41.8 million compared to a net loss attributable to Hippo of $40.5 million for the three months ended June 30, 2024 due to the factors described above.
Current report
The Company issued a surplus note on June 2, 2025 in the amount of $50.0 million. The surplus note issuance provides additional statutory capital and further support Spinnaker’s operational and growth initiatives.
Removed paragraphs (6)
Previous report
For the three months ended March 31, 2025, our Gross Loss Ratio was 95% net of a prior year favorable development of 1 percentage point relating to non-PCS events compared with 59% for the three months ended March 31, 2024. The increase in PCS losses for the three months ended March 31, 2025 includes 47 percentage points related to the LA Wildfires. These increases were partially offset by a decrease in our non-PCS losses due primarily to the benefits of the pricing and underwriting actions we have taken. There was no material PCS or non-PCS prior year developments in the prior year quarter.
Previous report
March 31, 2024. The increase in PCS losses for the three months ended March 31, 2025 includes 51 percentage points related to the LA Wildfires. These increases were partially offset by a decrease in losses from wildfires other than the LA Wildfires. due primarily to the benefits of the pricing and underwriting actions we have taken. There was no material PCS or non-PCS prior year developments in the prior year quarter.
Previous report
For the three months ended March 31, 2025, HPGLR was 121% compared to 80% for the three months ended March 31, 2024. The increase reflected the effects of higher severity PCS events experienced in the three months ended March 31, 2025 primarily from the LA Wildfires, which was partially offset by a decrease in our non-PCS losses due primarily to the benefits of the pricing and underwriting actions we have taken. The increase in PCS losses for the three months ended March 31, 2025 includes 56 percentage points related to the LA Wildfires.
Previous report
For the three months ended March 31, 2025, loss and loss adjustment expenses were $92.4 million, an increase of $39.8 million, compared to $52.6 million for the three months ended March 31, 2024. The increase was due primarily to the impact from the LA Wildfires of $44.1 million in the three months ended March 31, 2025, which was partially offset by a decrease in our non-PCS losses due primarily to the benefits of the pricing and underwriting actions we have taken.
Previous report
Net Loss Attributable to Hippo
Previous report
In April 2025, our subsidiary, Spinnaker Insurance Company, entered into an agreement to issue a $50 million surplus note to several initial purchasers. The transaction is subject to regulatory approval by the Illinois Department of Insurance. If approved, the closing of the surplus note issuance would provide additional statutory capital and further support Spinnaker’s operational and growth initiatives. As of the date of this report, regulatory approval has not been received, and no proceeds have been funded.
Reworded paragraphs (35)
Previous wording
Our catastrophe reinsurance program supports property risks underwritten through Spinnaker Insurance Company on behalf of HHIP and third-party MGAs. These risks are protected by program-specific XOL treaties, and in some cases, quota share reinsurance. In addition to the program specific covers, Spinnaker is also protected by a corporate catastrophe cover, and participation in the Florida Hurricane Catastrophe Fund (FHCF). This structure is designed to provide protection against severe loss events across the portfolio, covering up to at least a 1-in-250-year return period threshold.
Current wording
Our catastrophe reinsurance program supports property risks underwritten through Spinnaker Insurance Company (“Spinnaker”) on behalf of HHIP and third-party MGAs. These risks are protected by program-specific XOL treaties, and in some cases, quota share reinsurance. In addition to the program specific covers, Spinnaker is also protected by a corporate catastrophe cover, and participation in the Florida Hurricane Catastrophe Fund (FHCF). This structure is designed to provide protection against severe loss events across the portfolio, covering up to at least a 1-in-250-year return period threshold.
Previous wording
Our long-term growth will depend, in large part, on our continued ability to attract new customers to our platform. For Hippo home insurance policies, we seek to minimize the volatility of our portfolio and are currently in the process of analyzing overall underwriting results for the segment, taking actions as needed. We intend to continue to drive new customer growth by highlighting our consumer-focused approach to home protection and insurance across multiple distribution channels, regardless of whether the customer is a Hippo policyholder. In particular, we seek to grow by:
Current wording
Our long-term growth will depend, in large part, on our continued ability to attract new customers to our platform. For Hippo home insurance policies, we seek to minimize the volatility of our portfolio and will take actions as needed. We intend to continue to drive new customer growth by highlighting our consumer-focused approach to home protection and insurance across multiple distribution channels, regardless of whether the customer is a Hippo policyholder. In particular, we seek to grow by:
Previous wording
Impairment and restructuring charges consist of non-cash impairment charges relating to goodwill. We review goodwill for impairment annually on October 1 and more frequently if events or changes in circumstances indicate that an impairment may exist. If the carrying value of the reporting unit exceeds its fair value, the fair value of the reporting unit’s goodwill is calculated and an impairment loss equal to the excess is recorded. It also consists of severance and other personnel costs associated with exit and disposal activities as well as reductions in workforce.
Current wording
Impairment and restructuring charges consist of non-cash impairment charges relating to leases. It also consists of severance and other personnel costs associated with exit and disposal activities as well as reductions in workforce.
Previous wording
The non-GAAP financial measures below have not been calculated in accordance with GAAP, and should be considered in addition to results prepared in accordance with GAAP, and should not be considered as a substitute for, or superior to, GAAP results. In addition, adjusted EBITDA should not be construed as an indicator of our operating performance, liquidity, or cash flows generated by operating, investing, and financing activities, as there may be significant factors or trends that it fails to address. We caution investors that non-GAAP financial information—by its nature—departs from traditional accounting conventions. Therefore, its use can make it difficult to compare our current results with our results from other reporting periods and with the results of other companies.
Current wording
The non-GAAP financial measures below have not been calculated in accordance with GAAP, and should be considered in addition to results prepared in accordance with GAAP, and should not be considered as a substitute for, or superior to, GAAP results. In addition, adjusted EBITDA and adjusted net income should not be construed as indicators of our operating performance, liquidity, or cash flows generated by operating, investing, and financing activities, as there may be significant factors or trends that it fails to address. We caution investors that non-GAAP financial information—by its nature—departs from traditional accounting conventions. Therefore, its use can make it difficult to compare our current results with our results from other reporting periods and with the results of other companies.
Previous wording
Our Gross Written Premium for the three months ended March 31, 2025 increased 8% year-over-year to $210.9 million from $194.7 million for the three months ended March 31, 2024. The increase was driven primarily by the year-over-year growth in our Insurance-as-a-Service book of business.
Current wording
Our Gross Written Premium for the three months ended June 30, 2025 increased 16% year-over-year to $298.6 million from $257.6 million for the three months ended June 30, 2024. The increase was driven primarily by the year-over-year growth in our Insurance-as-a-Service book of business.
Previous wording
For the three months ended March 31, 2025, adjusted EBITDA loss was $41.1 million, an increase of $21.3 million compared to a $19.8 million EBITDA loss for the three months ended March 31, 2024. The increase was due primarily to an increase in PCS events, primarily driven by a series of destructive wildfires that affected Los Angeles, California (“LA Wildfires”) which negatively impacted adjusted EBITDA by $45.4 million, this impact was partially offset by a growth in net earned premium due to higher premium retention compared to prior periods.
Current wording
For the three months ended June 30, 2025, adjusted EBITDA was $11.8 million, a change of $36.7 million compared to a $24.9 million adjusted EBITDA loss for the three months ended June 30, 2024. The increase was due primarily to a decrease in our net loss ratio, partially offset by an increase in insurance related expenses due to our overall growth of our business.
Previous wording
For the three months ended March 31, 2025, our net loss ratio was 106% net of a prior year favorable development of 3 percentage points relating to non-PCS events compared with 87% for the three months ended
Current wording
For the three months ended June 30, 2025, our net loss ratio was 47%, net of a prior year favorable development of 5 percentage points relating to non-PCS losses and 2 percentage points related to PCS events, compared with 94%, net of a prior year favorable development of 3 percentage points relating to PCS events, for the three months ended June 30, 2024. The decrease in PCS losses for the three months ended June 30, 2025 was due primarily to lower catastrophe losses. The decrease in non-PCS losses for the three months ended June 30, 2025 was due primarily to the benefits of the pricing and underwriting actions we have taken.
Previous wording
For the three months ended March 31, 2025, our Services segment, which earns fees and/or commission income without assuming underwriting risk or need for reinsurance, had revenue of $11.7 million, an increase of 3% from $11.4 million over the prior year quarter. Our adjusted operating loss was $3.5 million, a decrease of 34% compared to a loss of $5.3 million in the prior year quarter, due primarily to lower adjusted operating expenses including a decrease in advertising costs, and an increase in revenue as noted above.
Current wording
For the three months ended June 30, 2025, our Services segment, which earns fees and/or commission income without assuming underwriting risk or need for reinsurance, had revenue of $11.7 million, a decrease of 3% from $12.1 million over the prior year quarter. Our adjusted operating loss was $3.2 million, a decrease of 29% compared to a loss of $4.5 million in the prior year quarter, due primarily to lower noncontrolling interests and sales and marketing expenses, partially offset by a decrease in revenue due to the First Connect divestiture in October 2024.
Previous wording
Our Insurance-as-a-Service segment, which through our carrier, Spinnaker, leverages our capital and insurance licenses to provide capacity to MGAs, creating diversified income through fees, underwriting profits, and investment income. For the three months ended March 31, 2025, revenue was $38.9 million, an increase of 91% from $20.4 million over the prior year quarter. The growth was driven primarily by a combination of increased premium retention on certain programs and the increase in performance of existing programs. Adjusted operating loss was $0.5 million, a decrease of 111% compared to income of $4.7 million in the prior year quarter, due primarily to an increase in loss and loss adjustment expenses due to losses from the LA Wildfires of $12.1 million and increased premium retention. There was also an increase in insurance related expenses due to the increase in premium retention. These were partially offset by an increase in revenue as noted above.
Current wording
Our Insurance-as-a-Service segment, which through our carrier, Spinnaker, leverages our capital and insurance licenses to provide capacity to MGAs, creating diversified income through fees, underwriting profits, and investment income. For the three months ended June 30, 2025, revenue was $48.0 million, an increase of 97% from $24.4 million over the prior year quarter. The growth was driven primarily by a combination of increased premium retention and the growth of our book of business. Adjusted operating income was $10.0 million, an increase of 75% compared to income of $5.7 million in the prior year quarter, due primarily to an increased premium retention, partially offset by the increase in loss and loss adjustment expenses and insurance related expenses.
Previous wording
For the three months ended March 31, 2025, our Hippo Homeowners Insurance Program had revenue of $61.9 million, an increase of 12% from $55.1 million over the prior year quarter. The increase in revenue was due primarily to higher net earned premium due to higher premium retention on our 2024 and 2025 reinsurance treaties. Adjusted operating loss was $38.0 million in the quarter, an increase of 88% compared to a loss of $20.2 million in the prior year quarter. The increase in adjusted operating loss was due primarily to an increase in loss and loss adjustment expenses due to the LA Wildfires of $32.0 million and seasonality of the book of business. These were partially offset by an increase in revenue as noted above.
Current wording
For the three months ended June 30, 2025, our Hippo Homeowners Insurance Program had revenue of $60.6 million, an increase of 8% from $56.2 million over the prior year quarter. The increase in revenue was due primarily to higher net earned premium due to higher premium retention on our 2024 and 2025 reinsurance treaties. Adjusted operating income was $4.8 million in the quarter compared to a loss of $26.0 million in the prior year quarter. The change in adjusted operating income was due primarily to a decrease in loss and loss adjustment expenses, as well as the increase in revenue.
Previous wording
Hippo Home Insurance Program Gross Loss Ratio (“HPGLR”) is a key performance indicator that represents our underwriting operational performance. This ratio includes losses and premiums written and placed on Spinnaker (our carrier) as well as other carriers for Hippo policies (policies underwritten by the Hippo MGA). For the periods presented, changes in this ratio also impact our ceding commission revenue and loss participation features in our reinsurance treaties, which is included in loss and loss adjustment expense on our condensed consolidated statements of operations and comprehensive loss. This ratio is also used by our reinsurers and other carriers to make business decisions relating to the capacity of reinsurance and amount of ceding commission that would be available to Hippo. The lower the ratio, the better the economics for Hippo.
Current wording
Hippo Home Insurance Program Gross Loss Ratio (“HPGLR”) is a key performance indicator that represents our underwriting operational performance. This ratio includes losses and premiums written and placed on Spinnaker (our carrier) as well as other carriers for Hippo policies (policies underwritten by the Hippo MGA). For the periods presented, changes in this ratio also impact our ceding commission revenue and loss participation features in our reinsurance treaties, which is included in loss and loss adjustment expense on our condensed consolidated statements of operations and comprehensive income (loss). This ratio is also used by our reinsurers and other carriers to make business decisions relating to the capacity of reinsurance and amount of ceding commission that would be available to Hippo. The lower the ratio, the better the economics for Hippo.
Previous wording
Comparison of the Three Months Ended March 31, 2025 and 2024
Current wording
Comparison of the Three and Six Months Ended June 30, 2025 and 2024
Previous wording
For the three months ended March 31, 2025, net earned premium was $87.3 million, an increase of $26.8 million compared to $60.5 million for the three months ended March 31, 2024. This increase was due primarily to increases in gross earned premium due to higher retention of earned premium, partially offset by an increased cost of XOL premiums for our catastrophic coverage which results in an increase in ceded earned premium and lower net earned premium. We purchased XOL to cover events in excess of per occurrence limits based on the expected growth in exposure during the year. For the three months ended March 31, 2025 and 2024, $15.2 million and $13.5 million, respectively, was offset against earned premium for XOL.
Current wording
For the three months ended June 30, 2025, net earned premium was $94.0 million, an increase of $29.6 million compared to $64.4 million for the three months ended June 30, 2024. This increase was due primarily to increases in gross earned premium due to higher retention of earned premium on our Insurance-as-a-Service book of business. We purchased XOL to cover events in excess of per occurrence limits based on the expected growth in exposure during the year. For the three months ended June 30, 2025 and 2024, $13.5 million and $15.4 million, respectively, was offset against earned premium for XOL.
Previous wording
The following table presents gross written premium, ceded written premium, net written premium, change in unearned premium, and net earned premium for the three months ended March 31, 2025 and 2024 (in millions).
Current wording
The following table presents gross written premium, ceded written premium, net written premium, change in unearned premium, and net earned premium for the three and six months ended June 30, 2025 and 2024 (in millions).
Previous wording
For the three months ended March 31, 2025, commission income was $14.4 million, a decrease of $1.5 million, or 9%, compared to $15.9 million for the three months ended March 31, 2024. The decrease was due primarily to a decrease in fronting fees and ceding commissions totaling $1.3 million due to higher premium retention.
Current wording
For the three months ended June 30, 2025, commission income was $14.7 million, a decrease of $1.4 million, or 9%, compared to $16.1 million for the three months ended June 30, 2024. The decrease was due primarily to a decrease in ceding commissions and fronting fees totaling $0.8 million due to higher premium retention.
Previous wording
For the three months ended March 31, 2025, service and fee income was $2.8 million, compared to $2.8 million for the three months ended March 31, 2024.
Current wording
For the three months ended June 30, 2025, service and fee income was $2.9 million, a decrease of $0.1 million, or 3%, compared to $3.0 million for the three months ended June 30, 2024.
Previous wording
For the three months ended March 31, 2025, net investment income was $5.8 million, a decrease of $0.1 million, compared to $5.9 million for the three months ended March 31, 2024. We are mainly invested in money market accounts, securities issued by the U.S. government and agencies, high-grade corporate securities, residential and commercial mortgage-backed securities, and other governmental related securities.
Current wording
For the three months ended June 30, 2025, net investment income was $5.7 million, a decrease of $0.4 million, compared to $6.1 million for the three months ended June 30, 2024. The decrease was due primarily to a decrease in yields. We are mainly invested in money market accounts, securities issued by the U.S. government and agencies, high-grade corporate securities, residential and commercial mortgage-backed securities, and other governmental related securities.
Previous wording
For the three months ended March 31, 2025, insurance related expenses were $30.2 million, an increase of $9.4 million, or 45%, compared to $20.8 million for the three months ended March 31, 2024. The increase was due primarily to an increase in acquisition expenses, net of $7.6 million due to our increased premium retention in our Insurance-as-a-Service segment..
Current wording
For the three months ended June 30, 2025, insurance related expenses were $32.8 million, an increase of $8.3 million, or 34%, compared to $24.5 million for the three months ended June 30, 2024. The increase was due primarily to an increase in acquisition expenses, net of $9.2 million due to increased premium retention in our Insurance-as-a-Service segment, partially offset by a decrease in underwriting costs of $0.4 million.
Previous wording
For the three months ended March 31, 2025, technology and development expenses were $8.1 million, a decrease of $0.2 million, or 2%, compared to $8.3 million for the three months ended March 31, 2024. The decrease was due primarily to a decrease in employee-related costs of $0.2 million.
Current wording
For the three months ended June 30, 2025, technology and development expenses were $8.1 million, an increase of $0.3 million, or 4%, compared to $7.8 million for the three months ended June 30, 2024. The increase was due primarily to an increase in employee-related costs of $0.3 million.
Previous wording
For the three months ended March 31, 2025, sales and marketing expenses were $8.9 million, a decrease of $5.5 million, or 38%, compared to $14.4 million for the three months ended March 31, 2024. The decrease was due primarily to a decrease in employee-related costs of $2.2 million due to a decrease in headcount and a decrease in the change in fair value of contingent consideration of $2.1 million. The decrease was also due to a decrease in advertising costs of $0.6 million, and a decrease in amortization of acquired intangible assets of $0.3 million.
Current wording
For the six months ended June 30, 2025, sales and marketing expenses were $18.1 million, a decrease of $9.7 million, or 35%, compared to $27.8 million for the six months ended June 30, 2024. The decrease was due primarily to a decrease in employee-related costs of $4.9 million, including a decrease in stock-based compensation of $2.6 million due to a decrease in headcount. The decrease was also due to the change in fair value of contingent consideration of $2.2 million and a decrease in advertising costs of $1.0 million.
Previous wording
For the three months ended March 31, 2025, general and administrative expenses were $16.5 million, a decrease of $1.8 million, or 10%, compared to $18.3 million for the three months ended March 31, 2024. The decrease was due primarily to a decrease in legal costs.
Current wording
For the three months ended June 30, 2025, general and administrative expenses were $17.4 million, a decrease of $2.5 million, or 13%, compared to $19.9 million for the three months ended June 30, 2024. The decrease was due primarily to a decrease in legal costs of $1.8 million and a decrease in employee-related costs of $0.8 million.
Previous wording
There were no impairment and restructuring charges for the three months ended March 31, 2025. For the three months ended March 31, 2024, impairment and restructuring charges were $3.6 million which is primarily related to the impairment of a lease right-of-use asset due to abandonment of leased office space.
Current wording
For the three months ended June 30, 2025, impairment and restructuring charges were $1.2 million. This is related to the impairment of a lease right-of-use asset due to termination of leased office space.
Previous wording
For the three months ended March 31, 2025, income tax benefit was $0.2 million, a change of $0.4 million compared to an expense of $0.2 million for the three months ended March 31, 2024.
Current wording
For the six months ended June 30, 2025, income tax benefit was $0.1 million, a change of $1.1 million compared to an expense of $1.0 million for the six months ended June 30, 2024.
Previous wording
Net loss attributable to Hippo is calculated in accordance with GAAP as total revenue less total expenses and taxes and net of net income attributable to noncontrolling interest, net of tax.
Current wording
Net (income) loss attributable to Hippo is calculated in accordance with GAAP as total revenue less total expenses and taxes and net of net income attributable to noncontrolling interest, net of tax.
Previous wording
For the three months ended March 31, 2025, net loss attributable to Hippo was $47.7 million, an increase of $12.0 million compared to $35.7 million for the three months ended March 31, 2024 due to the factors described above.
Current wording
For the six months ended June 30, 2025, net loss attributable to Hippo was $46.4 million, a decrease of $29.8 million compared to $76.2 million for the six months ended June 30, 2024 due to the factors described above.
Previous wording
Our existing sources of liquidity include cash and cash equivalents and marketable securities. As of March 31, 2025, we had $140.9 million of cash, $39.3 million of restricted cash, and $387.6 million of available-for-sale fixed income securities and short-term investments.
Current wording
Our existing sources of liquidity include cash and cash equivalents and marketable securities. As of June 30, 2025, we had $198.9 million of cash, $26.9 million of restricted cash, and $405.1 million of available-for-sale fixed income securities and short-term investments.
Previous wording
In addition, we are a member of the Federal Home Loan Bank (FHLB) of New York, which provides secured borrowing capacity. Our borrowing capacity as of March 31, 2025, is $17.4 million, and there were no outstanding amounts under this agreement.
Current wording
In addition, we are a member of the Federal Home Loan Bank (FHLB) of New York, which provides secured borrowing capacity. Our borrowing capacity as of June 30, 2025, is $42.5 million, and there were no outstanding amounts under this agreement.
Previous wording
To date, we have funded operations primarily with issuances of convertible preferred stock, convertible promissory notes, and from net proceeds from a private placement transaction in connection with the Business Combination, the Business Combination, and revenue. Until we can generate sufficient revenue and other income to cover operating expenses, working capital and capital expenditures, we expect the funds raised as discussed above to fund our cash needs. Our capital requirements depend on many factors, including the volume of issuances of insurance policies, the timing and extent of spending to support research and development efforts, investments in information technology systems, and the expansion of sales and marketing activities. In the future, we may raise additional funds through the issuance of debt or equity securities or through borrowing. We cannot assure that such funds will be on favorable terms, or available at all.
Current wording
To date, we have funded operations primarily with issuances of convertible preferred stock, convertible promissory notes, and from net proceeds from the surplus note, private placement transaction in connection with the Business Combination, the Business Combination, and revenue. Until we can generate sufficient revenue and other income to cover operating expenses, working capital and capital expenditures, we expect the funds raised as discussed above to fund our cash needs. Our capital requirements depend on many factors, including the volume of issuances of insurance policies, the timing and extent of spending to support research and development efforts, investments in information technology systems, and the expansion of sales and marketing activities. In the future, we may raise additional funds through the issuance of debt or equity securities or through borrowing. We cannot assure that such funds will be on favorable terms, or available at all.
Previous wording
Cash used in operating activities was $35.6 million for the three months ended March 31, 2025, a change of $53.3 million, from cash provided by operating activities of $17.7 million for the three months ended March 31, 2024. The change was due primarily to an increase in net loss and decrease in cash provided by working capital. Cash used in operating activities represents payments for our operations including, payroll, loss and loss adjusted expenses and marketing activities.
Current wording
Cash used in operating activities was $10.9 million for the six months ended June 30, 2025, a change of $18.0 million, from cash provided by operating activities of $7.1 million for the six months ended June 30, 2024. The change was due primarily to an increase in cash used by working capital partially offset by a decrease in net loss. Cash used in operating activities represents payments for our operations including, payroll, loss and loss adjusted expenses and marketing activities.
Previous wording
Cash used in investing activities was $11.0 million for the three months ended March 31, 2025, due primarily to the purchases of investment securities, partially offset by the maturities of investment securities.
Current wording
Cash used in investing activities was $32.9 million for the six months ended June 30, 2025, due primarily to the purchases of investment securities, partially offset by the maturities of investment securities.
Previous wording
Cash provided by investing activities was $58.5 million for the three months ended March 31, 2024, due primarily to the maturities of investment securities, partially offset by purchases of investment securities.
Current wording
Cash provided by investing activities was $30.4 million for the six months ended June 30, 2024, due primarily to the maturities of investment securities, partially offset by purchases of investment securities.
Previous wording
Cash used in financing activities was $8.0 million for the three months ended March 31, 2024, primarily driven by distributions to noncontrolling interests, repurchases of shares, and taxes paid related to net share settlement of RSUs, partially offset by proceeds from common stock issuances.
Current wording
Cash provided by financing activities was $36.8 million for the six months ended June 30, 2025, primarily driven by proceeds from the surplus note and common stock issuances. These are partially offset by distributions to noncontrolling interests and change in fiduciary liabilities, and taxes paid related to net share settlement of RSUs.
Previous wording
Cash used in financing activities was $6.0 million for the three months ended March 31, 2025, primarily driven by distributions to noncontrolling interests and change in fiduciary liabilities, and taxes paid related to net share settlement of RSUs, partially offset by proceeds from common stock issuances.
Current wording
Cash used in financing activities was $12.4 million for the six months ended June 30, 2024, primarily driven by distributions to noncontrolling interests and change in fiduciary liabilities, and taxes paid related to net share settlement of RSUs, partially offset by proceeds from common stock issuances.
Previous wording
Our material cash requirements from known contractual and other obligations primarily relate to purchase commitments, lease payments, and unpaid loss and loss adjustment expense. There have been no material changes to our contractual obligations from those described in the Annual Report on Form 10-K for the year ended December 31, 2024, other than an increase in Unpaid Loss and Loss Adjustment Expense. The estimation of the unpaid losses and loss adjustment expenses is based on various complex and subjective judgments. Actual losses paid may differ, perhaps significantly, from the reserve estimates reflected in our condensed consolidated financial statements. Similarly, the timing of payment of our estimated losses is not fixed and there may be significant changes in actual payment activity. The assumptions used in estimating the likely payments due by period are based on our historical claims payment experience and industry payment patterns, but due to the inherent uncertainty in the process of estimating the timing of such payments, there is a risk that the amounts paid can be significantly different from the amounts disclosed.
Current wording
Our material cash requirements from known contractual and other obligations primarily relate to purchase commitments, lease payments, and unpaid loss and loss adjustment expense. There have been no material changes to our contractual obligations from those described in the Annual Report on Form 10-K for the year ended December 31, 2024, other than an increase in Unpaid Loss and Loss Adjustment Expense and the surplus note. The estimation of the unpaid losses and loss adjustment expenses is based on various complex and subjective judgments. Actual losses paid may differ, perhaps significantly, from the reserve estimates reflected in our condensed consolidated financial statements. Similarly, the timing of payment of our estimated losses is not fixed and there may be significant changes in actual payment activity. The assumptions used in estimating the likely payments due by period are based on our historical claims payment experience and industry payment patterns, but due to the inherent uncertainty in the process of estimating the timing of such payments, there is a risk that the amounts paid can be significantly different from the amounts disclosed.
Previous wording
Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our Annual Report on Form 10-K and the notes to the unaudited interim condensed consolidated financial statements appearing elsewhere in this Quarterly Report. During the three months ended March 31, 2025, there were no material changes to our critical accounting policies from those discussed in our Annual Report on Form 10-K.
Current wording
Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our Annual Report on Form 10-K and the notes to the unaudited interim condensed consolidated financial statements appearing elsewhere in this Quarterly Report. During the six months ended June 30, 2025, there were no material changes to our critical accounting policies from those discussed in our Annual Report on Form 10-K.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, our Services segment, which earns fees and/or commission income without assuming underwriting risk or need for reinsurance, had revenue of $23.4 million compared to $23.5 million over the prior year period. Our adjusted operating loss was $6.7 million, a decrease of 32% compared to a loss of $9.8 million in the prior year period, due primarily to lower sales and marketing expenses.
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, net earned premium was $181.3 million, an increase of $56.4 million compared to $124.9 million for the six months ended June 30, 2024. This increase was due primarily to increases in gross earned premium due to year-over-year growth of our total book of business and higher retention of earned premium due to higher retention on our Insurance-as-a-Service book of business. We purchased XOL to cover events in excess of per occurrence limits based on the expected growth in exposure during the year. For the six months ended June 30, 2025 and 2024, $28.8 million and $28.9 million, respectively, was offset against earned premium for XOL.
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, net investment income was $11.5 million, a decrease of $0.5 million, compared to $12.0 million for the six months ended June 30, 2024. The decrease was due primarily to a decrease in yields. We are mainly invested in money market accounts, securities issued by the U.S. government and agencies, high-grade corporate securities, residential and commercial mortgage-backed securities, and other governmental related securities.