Hippo Holdings Inc.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
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.
Sep 30, 2025 · Filed Nov 5, 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 2025-06-30; filed 2025-08-06.
0001828105-25-000055
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001828105-25-000070
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 197 previous paragraphs and 177 current paragraphs.
73 unchanged; 42 reworded; 59 added; 81 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 17 previous and 16 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 (59)
Current report
Net written premium is calculated as the amount of gross written premium written less ceded written premium.
Current report
Gain on sale of business is measured as the fair value of consideration received in excess of the carrying value of the assets and liabilities sold.
Current report
Beginning in the third quarter of 2025, we have discontinued reporting Adjusted EBITDA and Gross Loss Ratio, and are beginning to report Expense Ratio, Combined Ratio, and Diluted adjusted earnings (loss) per share as performance measures. This change aligns with our evolving business model and internal performance measurement practices.
Current report
Catastrophe Loss Ratio
Current report
Catastrophe loss ratio, expressed as a percentage, is the ratio of catastrophe losses and LAE to the net earned premium.
Current report
Non-catastrophe Loss Ratio
Current report
Non-catastrophe loss ratio expressed as a percentage, is the ratio of the net non-catastrophe losses and LAE to the net earned premium.
Current report
Expense Ratio
Current report
Expense ratio, expressed as a percentage, is the ratio of insurance related expenses, technology and development expenses, sales and marketing expenses, and general and administrative expenses, net of commission income, net and service and fee income, to net earned premiums. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of our expense ratio.
Current report
Combined Ratio
Current report
Combined ratio is defined as the sum of the net loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.
Current report
Diluted Adjusted Earnings (Loss) per Share
Current report
Diluted adjusted earnings (loss) per share is a non‑GAAP financial measure defined as adjusted net income (loss) divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of diluted earnings per share calculated in accordance with GAAP to diluted adjusted earnings (loss) per share.
Current report
Annualized Adjusted Return on Equity
Current report
Annualized adjusted return on equity is a non‑GAAP financial measure defined as adjusted net income (loss) expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of return on equity calculated using unadjusted GAAP numbers to adjusted return on equity.
Current report
Tangible Book Value per Share
Current report
Tangible book value per share is a non‑GAAP financial measure defined as total stockholders’ equity, less intangible assets, divided by the outstanding number of shares of our common stock at the end of the relevant period. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of Hippo stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity.
Current report
Results of Operations of the Three Months Ended September 30, 2025 and 2024
Current report
(1)Indicates non-GAAP financial measure; see “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with GAAP.
Current report
For the three months ended September 30, 2025, gross written premium was $311.2 million, an increase of $76.8 million, or 33%, compared to $234.4 million for the three months ended September 30, 2024. The increase was primarily due to the growth in our Casualty and Commercial Multi-Peril lines of business as we continue to diversify our book, this was partially offset by a decrease in our Homeowners line. The following table summarizes our gross written premiums by line of business and shows each line’s percentage of total gross written premiums for each period (in millions, except percent data)::
Current report
For the three months ended September 30, 2025, ceded written premium was $193.3 million, an increase of $49.5 million, or 34%, compared to $143.8 million for the three months ended September 30, 2024. The increase was primarily due to the growth in written premiums subject to reinsurance in our Casualty and Commercial Multi-Peril lines of business partially offset by a decrease in written premiums in our Homeowners line and an increase in retention in our Renters line.
Current report
For the three months ended September 30, 2025, net written premium was $117.9 million, an increase of $27.3 million, or 30%, compared to $90.6 million for the three months ended September 30, 2024. The increase was primarily due to an increase in gross written premiums and risk retention in our Renters and Commercial Multi-Peril lines of business. This was partially offset by an increase in ceded written premiums. The following table summarizes our net written premiums by line of business and shows each line’s percentage of total net written premiums for each period (in millions, except percent data):
Current report
Net retention, calculated as net written premium divided by gross written premium, is 38% and 39%, for the three months ended September 30, 2025 and 2024, respectively
Current report
For the three months ended September 30, 2025, net earned premium was $99.7 million, an increase of $29.1 million, or 41%, compared to $70.6 million for the three months ended September 30, 2024. The increase was primarily due to the earning of increased gross written premiums and increased risk retention in our Renters and Commercial Multi-Peril lines of business partially offset by the earning of ceded written premiums under reinsurance agreements. The following table summarizes our net earned premiums by line of business and shows each line’s percentage of total net earned premiums for each period (in millions, except percent data):
Current report
For the three months ended September 30, 2025, commission income was $10.5 million, a decrease of $5.2 million, or 33%, compared to $15.7 million for the three months ended September 30, 2024. The decrease was due primarily to a decrease in agency commissions of $5.7 million due to the sale of our homebuilder distribution network in the third quarter of 2025.
Current report
For the three months ended September 30, 2025, loss and loss adjustment expenses were $47.5 million, a decrease of $4.1 million, compared to $51.6 million for the three months ended September 30, 2024. Losses and loss adjustment expenses consisted of the following elements during the respective periods (in millions, except percent data):
Current report
Catastrophe losses ratio decreased for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due primarily to a lower number and severity of catastrophe events. Included in our catastrophe loss ratio for the three months ended September 30, 2025 and 2024, is a benefit of 1 percentage point and 1 percentage point related to prior year favorable developments, respectively.
Current report
For the three months ended September 30, 2025, impairment and restructuring charges were $3.8 million. This is related to the impairment of capitalized software which has been determined to have no future useful life due to the sale of our homebuilder distribution network.
Current report
For the three months ended September 30, 2025, we recognized a gain on sale of $95.0 million related to the sale of our homebuilder distribution network, compared to a gain on sale of $8.2 million related to our subsidiary, Mainsail, for the three months ended September 30, 2024.
Current report
For the three months ended September 30, 2025 and 2024, respectively, income tax expense was $0.0 million.
Current report
Results of Operations of the Nine Months Ended September 30, 2025 and 2024
Current report
(1)Indicates non-GAAP financial measure; see “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with GAAP.
Current report
For the nine months ended September 30, 2025, gross written premium was $820.7 million, an increase of $133.9 million, or 19%, compared to $686.8 million for the nine months ended September 30, 2024. The increase was primarily due to the growth in our Commercial Multi-Peril, Casualty, and Renters lines of business as we continue to diversify our book, this was partially offset by a decrease in our Homeowners and Other lines. The following table summarizes our gross written premiums by line of business and shows each line’s percentage of total gross written premiums for each period (in millions, except percent data):
Current report
For the nine months ended September 30, 2025, ceded written premium was $495.6 million, an increase of $102.2 million, or 26%, compared to $393.4 million for the nine months ended September 30, 2024. The increase was primarily due to the growth in written premiums subject to reinsurance in our Casualty and Commercial Multi-Peril lines of business partially offset by an increase in risk retention in our Renters line.
Current report
For the nine months ended September 30, 2025, net written premium was $325.1 million, an increase of $31.7 million, or 11%, compared to $293.4 million for the nine months ended September 30, 2024. The increase was primarily due to an increase in gross written premiums and risk retention in our Renters and Commercial Multi-Peril lines of business. This was partially offset by a decrease in gross written premiums on our Homeowners line and an increase in ceded written premiums. The following table summarizes our net written premiums by line of business and shows each line’s percentage of total net written premiums for each period (in millions, except percent data):
Current report
Net retention, calculated as net written premium divided by gross written premium, is 40% and 43%, for the nine months ended September 30, 2025 and 2024, respectively.
Current report
For the nine months ended September 30, 2025, net earned premium was $281.0 million, an increase of $85.5 million, or 44% compared to $195.5 million for the nine months ended September 30, 2024. The increase was primarily due to the earning of increased gross written premiums and increased retention in our Renters and Commercial Multi-Peril lines of business as well as an increase in retention on our Homeowners line. This was partially offset by the earning of ceded written premiums under reinsurance agreements. The following table summarizes our net earned premiums by line of business and shows each line’s percentage of total net earned premiums for each period (in millions, except percent data):
Current report
For the nine months ended September 30, 2025 and 2024, respectively, service and fee income was $8.8 million.
Current report
For the nine months ended September 30, 2025, loss and loss adjustment expenses were $184.4 million, an increase of $19.8 million, compared to $164.6 million for the nine months ended September 30, 2024. Losses and loss adjustment expenses consisted of the following elements during the respective periods (in millions, except percent data):
Current report
Non-catastrophe losses ratio decreased for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due primarily to premium growth and the benefits of the pricing and underwriting actions we have taken. Included in our non-catastrophe loss ratio for the nine months ended September 30, 2025 and 2024, is a benefit of 3 percentage points and 1 percentage point related to prior year favorable developments, respectively.
Showing the first 40 of 59 passages. Open the source sections for the rest.
Removed paragraphs (81)
Previous report
Further information on our business and reportable segments is presented in Part I, Item 1, “Business” and in Note 22 of the Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2024.
Previous report
Our Ability to Attract New Customers
Previous report
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 report
•Promoting our agency for sales of non-Hippo policies, growing our network of partners within existing partner channels, and geographically optimizing our Hippo policyholder base;
Previous report
•Developing new strategic partnerships with key players involved in the real estate transaction ecosystem; and
Previous report
•Deepening our relationships with our customers by connecting them to partners offering value-added services that are not specifically insurance products, such as home maintenance, home monitoring, and energy consumption optimization.
Previous report
Our ability to attract new customers depends on the pricing of our products, the offerings of our competitors, our geographic reach, and the extent and effectiveness of our marketing efforts. Our ability to attract customers also depends on maintaining and strengthening our brand by providing superior customer experiences across all of our offerings through our proactive, tech-enabled strategy.
Previous report
We face competition from traditional insurers who have more diverse product offerings and longer established operating histories, as well as from new, technology-driven entrants who may pursue more horizontal growth strategies. These competitors may mimic certain aspects of our digital platform and offerings and have more types of insurance products, allowing them to offer customers the ability to “bundle” multiple coverage types together, which may be attractive to many customers.
Previous report
Our Ability to Retain Customers
Previous report
Our ability to derive significant lifetime value from our customer relationships depends, in part, on our ability to retain our customers over time. Strong retention allows us to build a recurring revenue base, generating additional premium term over term without material incremental marketing costs. Our customers typically become more valuable to us over time because retention rates have historically increased with the age of customer cohorts and because non-catastrophic loss frequency declines as cohorts mature.
Previous report
As we expect to broadly retain our customers who are not located in high severe weather exposed regions, over the long-term, we expect our book of business to evolve to be weighted more towards renewals versus new business, as is the case with our more mature competitors. We expect that this would enable us to benefit from the higher premium retention rates and inherently lower frequency of losses that characterize renewed premiums.
Previous report
Our ability to retain customers will depend on a number of factors, including our customers’ satisfaction with our products, the offerings of our competitors, and our ability to continue delivering exceptional customer service and support.
Previous report
Our Ability to Expand Fee Income and Premium Through Cross-Sales to Existing Customers
Previous report
One of our strategies to increase the value we are providing to our customers is to offer incremental services to assist our customers in better maintaining and protecting their homes. As we roll out these services, we expect to be able to generate incremental, non-risk-based service and fee income from our existing customers. We expect these home protection services not only to generate incremental revenue, but also to reduce losses for our customers, and—by implication—our loss ratios. Our success in expanding revenue and reducing losses by offering these services depends on our ability to market these services, our operational ability to deliver value to our customers, and the ability of these services to reduce the probability of loss for an average homeowner.
Previous report
We are also in the early stages of cross-selling non-homeowner insurance products across our customer base. Cross-sales allow us to generate additional premium per customer, and ultimately higher revenue and fee income, without material incremental marketing spend. Our success in expanding revenue through cross-sales depends on our marketing efforts with new products, offerings of our competitors, additional expansion into new states, and the pricing of our bundled products.
Previous report
Our Ability to Manage Risk
Previous report
We leverage data, technology, and geographic diversity to help manage risk. For instance, we obtain dynamic data from various sources and use advanced statistical methods to model that data into our pricing algorithm. Incorporating these external data sources and utilizing the experience gained with our own customer base should lead to better underwriting, reduced loss frequency, and—adjusting for weather related events—lower loss ratios over time. While our current reinsurance framework helps us manage the volatility of earnings, reducing our overall gross loss ratio is critical to our success. Our ability to incorporate new data sources as they become available and to use them to improve our ability to accurately and competitively price risk is central to our growth strategy.
Previous report
Gross Written Premium
Previous report
Ceded Written Premium
Previous report
Net Earned Premium
Previous report
Commission Income, Net
Previous report
Service and Fee Income
Previous report
Net Investment Income
Previous report
Loss and Loss Adjustment Expenses
Previous report
Insurance-Related Expenses
Previous report
Impairment and Restructuring Charges
Previous report
Income Taxes
Previous report
Gross Written Premium
Previous report
The following table provides Gross Written premium for the periods presented (in millions):
Previous report
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 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.
Previous 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.
Previous 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.
Previous report
Adjusted EBITDA
Previous report
We define adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (“adjusted EBITDA”), a Non-GAAP financial measure, as net loss attributable to Hippo excluding interest expense, income tax expense, depreciation, amortization, stock-based compensation, net investment income, restructuring charges, impairment expense, gains and losses on sales of business, and other non-cash fair market value adjustments including contingent consideration for one of our acquisitions, and other transactions, which may include certain legal fees and settlement costs, that we consider to be unique in nature.
Previous report
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 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.
Previous report
The following table provides a reconciliation from net loss attributable to Hippo to adjusted EBITDA for the periods presented (in millions):
Previous report
Gross Loss Ratio
Previous report
Gross Loss Ratio, expressed as a percentage, is the ratio of the Gross Losses and LAE to the Gross Earned Premium (in millions).
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Reworded paragraphs (42)
Previous wording
Hippo is an insurance holding company with subsidiaries that provide property and casualty insurance products to both individuals and business customers. We conduct our operations through three reportable segments: Services, Insurance-as-a-Service, and Hippo Home Insurance Program. We offer our services primarily in the United States.
Current wording
Hippo is an insurance holding company with subsidiaries that provide property and casualty insurance products to both individuals and business customers. We conduct our operations through one reportable segment. We offer our services primarily in the United States. Refer to Note 17 of the accompanying condensed consolidated financial statements for additional information on segments.
Previous 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.
Current wording
Our catastrophe reinsurance program supports property risks underwritten by us on behalf of our MGA 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, we are 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
For business written by HHIP through Spinnaker, we have strategically retained more risk in recent periods by scaling back proportional reinsurance, reflecting our confidence in the portfolio’s underwriting performance. HHIP remains covered by standalone catastrophe XOL protection.
Current wording
For business written by our MGA, we have strategically retained more risk in recent periods by scaling back proportional reinsurance, reflecting our confidence in the portfolio’s underwriting performance. Our MGA remains covered by standalone catastrophe XOL protection.
Previous wording
Additionally, we utilize collateralized reinsurance through Mountain Re Ltd., a Bermuda-based special purpose insurer. The catastrophe bonds issued through Mountain Re provide multi-year per occurrence coverage for a range of perils for business written through HHIP.
Current wording
Additionally, we utilize collateralized reinsurance through Mountain Re Ltd., a Bermuda-based special purpose insurer. The catastrophe bonds issued through Mountain Re provide multi-year per occurrence coverage for a range of perils for business written through our MGA.
Previous wording
Commission Income, net includes agency commission which the Company earns from the unaffiliated carriers whose policies the Company sells, ceding commission on the premium it cedes to third-party reinsurers, fronting fees through the Company’s Insurance-as-a-Service business from the Managing General Agent (“MGA”) programs it supports, and MGA Commission from the multiple insurers for which we operate as an MGA.
Current wording
Commission income, net includes agency commission which the Company earns from the unaffiliated carriers whose policies the Company sells, ceding commission on the premium it cedes to third-party reinsurers, fronting fees from the Managing General Agent (“MGA”) programs it supports, and MGA Commission from the multiple insurers for which we operate as an MGA.
Previous wording
Other (Income) Expense, net
Current wording
Interest and Other (Income) Expense, Net
Previous wording
Other (income) expense, net primarily consists of certain fair value adjustments and other non-operating income expenses.
Current wording
Interest and other (income) expense, net primarily consists of interest on our surplus note, as well as certain fair value adjustments and other non-operating income and expenses.
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 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.
Current wording
The non-GAAP financial measures 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 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
Beginning in the first quarter of 2025 we have discontinued reporting Total Generated Premium. This change aligns with our evolving business model, the sale of our independent agent platform First Connect, and internal performance measurement practices. Specifically, we have shifted our focus toward metrics that more closely correlate with financial performance under our current operating strategy and capital allocation approach. Additionally, as our business has matured, we believe that other metrics such as gross written premium, net earned premium, and commission income more effectively reflect the core operating drivers and provide investors with a clearer view of our performance and growth.
Current wording
Beginning in the first quarter of 2025 we have discontinued reporting Total Generated Premium. This change aligns with our evolving business model, the sale of our independent agent platform First Connect, and internal performance measurement practices. Specifically, we have shifted our focus toward metrics that more closely correlate with financial performance under our current operating strategy and capital allocation approach. Additionally, as our business has matured, we believe that other metrics such as gross written premium, net written premium, net earned premium, and commission income more effectively reflect the core operating drivers and provide investors with a clearer view of our performance and growth.
Previous wording
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 wording
Beginning in the second quarter of 2025, we are reporting adjusted net income (loss) 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.
Previous wording
We believe that this change enhances the clarity and comparability of our financial disclosures and aligns with industry standards. For consistency, historical figures for Total Generated Premium may continue to be referenced in select investor materials for comparative purposes, but will no longer be updated in our periodic filings.
Current wording
We believe that these changes enhance the clarity and comparability of our financial disclosures and aligns with industry standards. For consistency, historical figures for Total Generated Premium, Gross Loss Ratio, and Adjusted EBITDA may continue to be referenced in select investor materials for comparative purposes, but will no longer be updated in our periodic filings.
Previous wording
Net loss ratio expressed as a percentage, is the ratio of the net losses and LAE to the net earned premium (in millions).
Current wording
Net loss ratio, expressed as a percentage, is the ratio of the net losses and LAE to the net earned premium.
Previous 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.
Current wording
For the three months ended September 30, 2025, service and fee income was $3.1 million, a decrease of $0.1 million, or 3%, compared to $3.0 million for the three months ended September 30, 2024.
Previous 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.
Current wording
For the three months ended September 30, 2025, net investment income was $7.3 million, an increase of $1.1 million, compared to $6.2 million for the three months ended September 30, 2024. The increase was due primarily to higher average balance in cash and investments during the period. 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 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.
Current wording
Non-catastrophe losses ratio decreased for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due primarily to premium growth and the benefits of the pricing and underwriting actions we have taken. Included in our Non-catastrophe loss ratio for the three months ended September 30, 2024, is a benefit of 2 percentage points related to prior year favorable developments.
Previous wording
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 wording
For the three months ended September 30, 2025, insurance related expenses were $32.9 million, an increase of $10.3 million, or 46%, compared to $22.6 million for the three months ended September 30, 2024. The increase was due primarily to an increase in net acquisition expenses of $9.9 million due to increased premium retention and higher volume.
Previous 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.
Current wording
For the three months ended September 30, 2025, technology and development expenses were $8.0 million, an increase of $1.0 million, or 14%, compared to $7.0 million for the three months ended September 30, 2024. The increase was due primarily to an increase in employee-related costs of $0.5 million.
Previous wording
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 wording
For the three months ended September 30, 2025, sales and marketing expenses were $8.0 million, a decrease of $4.5 million, or 36%, compared to $12.5 million for the three months ended September 30, 2024. The decrease was due primarily to a decrease in employee-related costs of $2.1 million, including a decrease in stock-based compensation of $0.7 million due to a decrease in headcount. The decrease was also due to a decrease in amortization of acquired intangible assets of $1.0 million and a decrease in contingent consideration of $0.5 million due to the sale of our homebuilder distribution network.
Previous 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.
Current wording
For the three months ended September 30, 2025, general and administrative expenses were $16.5 million, an increase of $1.2 million, or 8%, compared to $15.3 million for the three months ended September 30, 2024. The increase was due primarily to an increase in consultant costs of $0.8 million and an increase in employee-related expenses of $0.7 million partially offset by a decrease in facilities costs of $0.4 million.
Previous wording
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 wording
For the three months ended September 30, 2025, net income attributable to Hippo was $98.1 million, a change of $106.6 million compared to a net loss attributable to Hippo of $8.5 million for the three months ended September 30, 2024 due to the factors described above.
Previous wording
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 wording
For the nine months ended September 30, 2025, commission income was $39.6 million, a decrease of $8.1 million, or 17%, compared to $47.7 million for the nine months ended September 30, 2024. The decrease was due primarily to a decrease in agency commission of $6.1 million due to the sale of our homebuilder distribution network in the third quarter of 2025 and the sale of First Connect in the fourth quarter of 2024, as well as a decrease in ceding commissions and fronting fees totaling $1.6 million due to higher premium retention, which decreases ceding commissions and increases net earned premium.
Previous wording
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.
Current wording
For the nine months ended September 30, 2025, net investment income was $18.8 million, an increase of $0.6 million, compared to $18.2 million for the nine months ended September 30, 2024. The increase was due primarily to higher average balance in cash and investments during the period. 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 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 wording
Catastrophe losses ratio decreased for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due primarily to a lower number and severity of catastrophe events in the second and third quarters of 2025 as well as premium growth and the benefits of the pricing and underwriting actions we have taken. This was partially offset by the impact of the series of destructive wildfires that affected Los Angeles, California (the “LA Wildfires”), which occurred in the first quarter of 2025. Included in our catastrophe loss ratio for the nine months ended September 30, 2025 and 2024, is a benefit of 1 percentage point and 1 percentage point related to prior year favorable developments, respectively.
Previous 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.
Current wording
For the nine months ended September 30, 2025, insurance related expenses were $95.9 million, an increase of $28.0 million, or 41%, compared to $67.9 million for the nine months ended September 30, 2024. The increase was due primarily to an increase in net acquisition expenses of $26.7 million due to increased premium retention and higher volume, partially offset by a decrease in underwriting costs of $1.2 million.
Previous wording
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 wording
For the nine months ended September 30, 2025, technology and development expenses were $24.2 million, an increase of $1.1 million, or 5%, compared to $23.1 million for the nine months ended September 30, 2024. The increase was due primarily to an increase in employee-related costs of $0.7 million.
Previous 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.
Current wording
For the nine months ended September 30, 2025, sales and marketing expenses were $26.1 million, a decrease of $14.2 million, or 35%, compared to $40.3 million for the nine months ended September 30, 2024. The decrease was due primarily to a decrease in employee-related costs of $7.1 million, including a decrease in stock-based compensation of $3.4 million due to a decrease in headcount. The decrease was also due to a decrease in contingent consideration of $2.7 million and a decrease in amortization of acquired intangible assets of $2.1 million due to the sale of our homebuilder distribution network and certain intangible assets that were fully amortized in the first quarter of 2025.
Previous wording
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 wording
For the nine months ended September 30, 2025, general and administrative expenses were $50.4 million, a decrease of $3.1 million, or 6%, compared to $53.5 million for the nine months ended September 30, 2024. The decrease was due primarily to a decrease in legal costs of $3.6 million and a decrease in facilities cost of $1.1 million, partially offset by an increase in consultants costs of $0.9 million and an increase in employee related costs of $0.6 million.
Previous 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.
Current wording
For the nine months ended September 30, 2025, impairment and restructuring charges were $5.0 million, an increase of $1.4 million, or 39%, compared to $3.6 million for the nine months ended September 30, 2024. The increase was primarily related to the impairment of capitalized software which has been determined to have no future due to the sale of our homebuilder distribution network, and the impairment of a lease right-of-use asset due to termination of leased office space.
Previous 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.
Current wording
For the nine months ended September 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 nine months ended September 30, 2024.
Previous 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.
Current wording
For the nine months ended September 30, 2025, net income attributable to Hippo was $51.7 million, an increase of $136.4 million compared to $84.7 million loss for the nine months ended September 30, 2024 due to the factors described above.
Previous wording
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 wording
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 (loss) does not reflect the overall profitably of our business. Adjusted net income (loss) should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define adjusted net income (loss) differently.
Previous wording
Net income calculated in accordance with GAAP reconciles to adjusted net income as follows (in millions):
Current wording
Net income (loss) calculated in accordance with GAAP reconciles to adjusted net income (loss) as follows (in millions):
Previous 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.
Current wording
Our existing sources of liquidity include cash and cash equivalents and marketable securities. As of September 30, 2025, we had $247.7 million of cash, $24.5 million of restricted cash, and $420.2 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 June 30, 2025, is $42.5 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 September 30, 2025, is $42.4 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 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.
Current wording
To date, we have funded operations primarily with issuances of convertible preferred stock, convertible promissory notes, common stock and a surplus note, as well as from asset dispositions 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 $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.
Current wording
Cash provided by operating activities was $6.0 million for the nine months ended September 30, 2025, a change of $47.9 million, from cash provided by operating activities of $53.9 million for the nine months ended September 30, 2024. The decrease was due primarily to a decrease in cash provided by working capital, partially offset by an increase in net income.
Previous 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.
Current wording
Cash provided by investing activities was $14.5 million for the nine months ended September 30, 2025, due primarily to the maturities of investment securities and the proceeds from sale of business, net of cash disposed, partially offset by purchases of investment securities.
Previous 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.
Current wording
Cash provided by investing activities was $2.5 million for the nine months ended September 30, 2024, due primarily to the maturities of investment securities and proceeds from the sale of a business, partially offset by purchases of investment securities.
Previous 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.
Current wording
Cash provided by financing activities was $18.9 million for the nine months ended September 30, 2025, primarily driven by proceeds from the surplus note and common stock issuances. These are partially offset by share repurchases under program, taxes paid related to net share settlement of RSUs, and distributions to noncontrolling interests and change in fiduciary liabilities.
Previous 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.
Current wording
Cash used in financing activities was $20.6 million for the nine months ended September 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.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
We define adjusted net income (loss), 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. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of net income (loss) calculated in accordance with GAAP to adjusted net income (loss).
Current report — wording carried from elsewhere
The following table sets forth our condensed consolidated results of operations data for the periods presented (in millions, except percent data):
Current report — wording carried from elsewhere
Net (Income) Loss Attributable to Hippo
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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.