Hippo Holdings Inc.
For the period ended Mar 31, 2026. Filed Apr 30, 2026.
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.
Mar 31, 2026 · Filed Apr 30, 2026
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 2025-09-30; filed 2025-11-05.
0001828105-25-000070
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0001828105-26-000025
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 177 previous paragraphs and 125 current paragraphs.
35 unchanged; 47 reworded; 41 added; 87 removed; 8 previous and 2 current paragraphs rearranged.
Tables are not compared: 16 previous and 14 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 (41)
Current report
The following discussion and analysis of our financial condition and results of our operations addresses the consolidated financial condition as of March 31, 2026, compared with December 31, 2025, and consolidated results of operations for the three months ended March 31, 2026 and 2025. This should be read in conjunction with our unaudited interim condensed consolidated financial statements and notes thereto included in Item 1 of this report and also our Management’s Discussion and Analysis of Financial Condition and Results of Operations, the “Risk Factors” section, and the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled “Risk Factors” in our Annual Report and may be updated from time to time in our other filings with the SEC.
Current report
We continue to execute actions to support balanced diversified growth, leveraging both third-party MGAs and our owned MGA to source and underwrite a diversified portfolio of risk across personal and commercial lines. We participate in MGA programs when they align with our risk appetite, and assess performance through disciplined underwriting, selective risk retention, reinsurance, and ongoing portfolio management. Over time, the mix of our written premium base has evolved, and we expect it may continue to evolve, with a lower proportion attributable to homeowners insurance as we further diversify our portfolio across less catastrophe exposed lines of business.
Current report
Line of business disclosure
Current report
Line-of-business information represents supplemental premium-related information and is not presented as separate reportable segments. For comparability, certain line-of-business information is presented for all periods shown, including periods prior to the initial introduction of this presentation in our disclosures.
Current report
Gross written premium and net written premium by line of business are presented in the Key Operating and Financial Metrics section below. Net earned premium by line of business is presented in the Results of Operations section immediately below.
Current report
Results of Operations for the Three Months Ended March 31, 2026 and 2025
Current report
The following table summarizes net income (loss) for the periods presented:
Current report
(1)Note: “NM” (not meaningful) is used where the base period is near-zero and percentage change would be misleading.
Current report
Net Earned Premium
Current report
For the three months ended March 31, 2026, net earned premium was $98.9 million, an increase of $11.6 million, or 13% compared to $87.3 million for the three months ended March 31, 2025. The increase was due primarily to the earnings of increased gross written premiums volume across our Commercial Multi-Peril and Casualty lines.
Current report
Commission Income, Net
Current report
Service and Fee Income
Current report
Net Investment Income
Current report
Losses and Loss Adjustment Expenses
Current report
Catastrophe loss ratio decreased for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due primarily to the absence of significant catastrophe events in the first quarter of 2026 compared to losses from the LA Wildfires in the first quarter of 2025. Catastrophe losses of $4.3 million for the three months ended March 31, 2026 were primarily related to convective storm activity.
Current report
Non-catastrophe loss ratio decreased for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due primarily to higher retention in lines with lower attritional loss ratios as well as the benefits of underwriting pricing actions taken during the period. Non-catastrophe losses increased by $4.2 million, reflecting higher net earned premium.
Current report
Insurance Related Expenses
Current report
Interest and other expense (income), net
Current report
For the three months ended March 31, 2026, there was no interest and other expense, net compared to interest and other income, net of $0.2 million for the three months ended March 31, 2025. The current period reflects $1.1 million of earnout consideration received in connection with a prior divestiture of First Connect Insurance Services (“First Connect”) in the fourth quarter of 2024, offset by $1.1 million of interest expense on our surplus note issued in June 2025.
Current report
Income Taxes
Current report
Net Income Attributable to Noncontrolling Interest, net of tax
Current report
For the three months ended March 31, 2026, there is no net income attributable to noncontrolling interest, compared to $2.3 million for the three months ended March 31, 2025. The decrease was due primarily to the elimination of the remaining noncontrolling interests related to the sale of our homebuilder distribution network.
Current report
How we evaluate performance
Current report
We evaluate performance on both a GAAP basis and, given the nature of our business, through insurance-specific non-GAAP operating metrics, which include a combination of (i) growth and mix metrics, (ii) underwriting performance metrics, and (iii) profitability, return and capital efficiency metrics.
Current report
The table below summarizes selected operating, growth and mix, underwriting, and profitability metrics that management uses to evaluate performance across periods.
Current report
(1)Indicates a non-GAAP financial measure.
Current report
Growth and mix metrics
Current report
Gross Written Premium
Current report
Ceded Written Premium
Current report
Net Written Premium
Current report
Management uses growth and mix metrics to assess growth trends, changes in business mix, retention, and the scale of underwriting activities.
Current report
For the three months ended March 31, 2026, gross written premium was $332.4 million, an increase of$121.5 million, or 58%, compared to $210.9 million for the three months ended March 31, 2025. The increase was primarily driven by growth in our Casualty and Commercial Multi-Peril lines of business. This growth was supported by increased volumes from existing programs and expansion into new program relationships.
Current report
(1)Q1 2025 Renters net written premium exceeded gross written premium due to a one-time reduction in ceded unearned premium resulting from the restructuring of the Renters reinsurance program effective January 1, 2025.
Current report
For the three months ended March 31, 2026, net written premium was$101.4 million, an increase of $1.1 million, or 1%, compared to$100.3 million for the three months ended March 31, 2025. Theincrease was primarily driven byhigher gross written premiums in our Casualty and Commercial Multi-Peril lines and higher retention levels in our Homeowners and Casualty lines. These were partially offset by a decrease in retention in our Renters line, where changes in net written premium relative to gross written premium were influenced by changes in retention levels.
Current report
Underwriting performance metrics
Current report
Management uses these metrics to assess underwriting performance, evaluate pricing adequacy, risk selection, portfolio quality and trends in loss experience.
Current report
Profitability, return and capital efficiency metrics
Current report
We define Adjusted Net Income (Loss) as net income (loss) adjusted for, as applicable, (i) depreciation and amortization, (ii) stock-based compensation expense, (iii) the impact of other non-cash fair market value adjustments, (iv) impairment and restructuring related expenses, (v) gain or loss on the sale of a business, and (vi) other one-off transactions, which primarily include the receipt of earnout consideration and certain legal fees and settlement costs that we consider to be unique in nature, 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 exclude the impact of depreciation and amortization, stock-based compensation expense, and non-cash fair market value adjustments, because these are non-cash expenses or non-cash fair value adjustments and we believe that excluding these items provides meaningful information regarding performance and ongoing cash-generation potential. We exclude impairment and restructuring related expenses, gain or loss on sale of business, and other one-off transactions because such expenses are periodic in nature and have no direct correlation to the cost of operating our business on an ongoing basis that we consider to be unique in nature.
Current report
Shown below is the adjusted net income (loss) for the following periods and a reconciliation of this measure of performance to net income (loss) as presented in the consolidated statements of operations and comprehensive income (loss):
Current report
(1)For additional information refer to Note 15, Net Income (Loss) Per Share Attributable to Common Stockholders, of the unaudited interim condensed consolidated financial statements.
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Removed paragraphs (87)
Previous report
Key Factors and Trends Affecting our Operating Results
Previous report
Our financial condition and results of operations have been, and will continue to be, affected by a number of factors, including the following:
Previous report
Our Ability to Manage Regulatory Impact, Including on Our Efforts to Manage Our Exposure to Volatility
Previous report
We are subject to extensive laws, regulations, administrative directives, and regulatory actions. From time to time, regulatory authorities or legislative bodies seek to influence and restrict premium rates, require premium refunds to policyholders, require reinstatement of terminated policies, restrict the ability of insurers to cancel or non-renew policies, require insurers to continue to write new policies or limit their ability to write new policies, limit insurers’ ability to change coverage terms and deductibles or to impose underwriting standards, impose additional regulations regarding agency and broker compensation, impose fines and penalties for unintended errors or mistakes, impose additional regulations regarding cybersecurity and privacy, and otherwise expand overall regulation of insurance products and the insurance industry. These laws may limit or restrict our ability to reduce our exposures, including to weather related losses.
Previous report
Seasonality of Claims Losses
Previous report
Seasonal patterns can impact our incurrence of claims losses, as seasonal weather patterns impact the level and amount of claims we receive. These patterns include hurricanes, wildfires, and coastal storms in the fall, cold weather patterns and changing home heating needs in the winter, and tornados and hailstorms in the spring and summer. The mix of geographic exposure and products within our customer base impacts our exposure to these weather patterns, and as we diversify our base of premium such that our exposure more closely resembles the industry exposure, we should see the impact of these events on our business more closely resemble the impact on the broader industry.
Previous report
Components of Results of Operations
Previous report
Revenue
Previous report
Net earned premium represents the earned portion of our gross written premium for insurance policies written or assumed by us and less the earned portion of ceded written premium (any portion of our gross written premium that is ceded to third-party reinsurers under our reinsurance agreements). We earn written premiums on a pro-rata basis over the term of the policies.
Previous report
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 report
Service and fee income mainly represents policy fees and other revenue. We directly bill policyholders for policy fees and collect and retain fees per the terms of the contracts between us and our insurers. Similar to the commission revenue, we estimate a cancellation reserve for policy fees using historical information. The performance obligation associated with these fees is satisfied at a point in time upon completion of the underwriting process, which is the policy effective date. Accordingly, we recognize all fees as revenue on the policy effective date.
Previous report
Net investment income represents interest earned from fixed maturity securities, short-term investments and other investments, and the gains or losses from the sale of investments. Our cash and invested assets primarily consist of fixed-maturity securities, and may also include cash and cash equivalents, equity securities, and short-term investments. The principal factors that influence net investment income are the size of our investment portfolio and the yield on that portfolio. As measured by amortized cost (which excludes changes in fair value, such as changes in interest rates), the size of our investment portfolio is mainly a function of our invested equity capital along with premium we receive from our customers less payments on customer claims.
Previous report
Net investment income also includes an insignificant amount of net realized gains (losses) on investments, which are a function of the difference between the amount received by us on the sale of a security and the security’s amortized cost, as well as any allowances for credit losses recognized in earnings, if any.
Previous report
Expenses
Previous report
Loss and loss adjustment expenses represent costs associated with insured claims, net of amounts ceded under reinsurance agreements. We utilize reinsurance to manage our exposure to large or unexpected losses and to support underwriting capacity for growth. Loss and loss adjustment expense is driven by the scope and duration of coverage we provide, as well as actual and expected loss experience. Estimates for loss and loss adjustment expenses incorporate actuarial methodologies and management judgment, including loss emergence during the reporting period and any revisions to prior period estimates. Our loss and loss adjustment expenses are generally influenced by the following factors:
Previous report
•The frequency, severity, and geographic impact of catastrophe events affecting our insured portfolio;
Previous report
•The volume and characteristics of non-catastrophe, attritional claims across our lines of business;
Previous report
•Changes in our underwriting mix, including variations in policy type, risk profile, and exposure concentration;
Previous report
•The terms and structure of our reinsurance program in effect during the occurrence of loss events;
Previous report
•The regional distribution and underlying risk attributes of our insured exposures;
Previous report
•Legal and regulatory changes that may affect claims costs or adjudication processes;
Previous report
•Trends in litigation activity and legal defense spending;
Previous report
•Inflationary pressures, particularly in residential construction materials and labor costs; and
Previous report
•Shifts in judicial outcomes or jury behavior that influence the magnitude of loss settlements.
Previous report
Insurance related expenses primarily consist of amortization of direct acquisition commission costs and premium taxes incurred on the successful acquisition of business written on a direct basis and credit card processing fees not charged to our customers. Insurance related expenses also include employee compensation (including stock-based compensation and benefits) of our underwriting teams, amortization of capitalized internal use software, as well as allocated occupancy costs and related overhead based on headcount. Insurance related expenses are offset by a portion of ceding commission income, which represents reimbursement of successful acquisition costs related to the underlying policies. Additionally, insurance related expenses include the costs of providing bound policies and delivering claims services to our customers. These costs include underwriting technology service costs including software, data services used for performing underwriting, and third-party call center costs in addition to personnel-related costs.
Previous report
Technology and Development
Previous report
Technology and development expenses primarily consist of employee compensation (including stock-based compensation and benefits) for our technology staff, which includes technology development, infrastructure support, actuarial, and third-party services. Technology and development also include allocated facility costs and related overhead based on headcount. We expense development costs as incurred, except for costs related to internal use software development projects, which are capitalized and subsequently depreciated over the expected useful life of the developed software.
Previous report
Sales and Marketing
Previous report
Sales and marketing expenses primarily consist of sales commission, advertising costs, and marketing expenditures, as well as employee compensation (including stock-based compensation and benefits) for employees engaged in sales, marketing, data analytics, and customer acquisition. Sales and marketing expenses also include allocated facility costs and related overhead based on headcount.
Previous report
General and Administrative
Previous report
General and administrative expenses primarily consist of employee compensation (including stock-based compensation and benefits) for our finance, human resources, legal, and general management functions, as well as facilities, insurance, and professional services.
Previous report
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 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.
Previous report
Interest and Other (Income) Expense, Net
Previous report
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 report
We record income taxes using the asset and liability method. Under this method, we record deferred income tax assets and liabilities based on the estimated future tax effects of differences between the financial statement and income tax basis of existing assets and liabilities. We measure these differences using the enacted statutory tax rates that are expected to apply to taxable income for the years in which differences are expected to reverse. We recognize the effect on deferred income taxes of a change in tax rates in income in the period that includes the enactment date.
Previous report
We record a valuation allowance to reduce deferred tax assets and liabilities to the net amount that we believe is more likely than not to be realized. We consider all available evidence, both positive and negative, including historical levels of income, expectations, and risks associated with estimates of future taxable income and ongoing tax planning strategies in assessing the need for a valuation allowance.
Previous report
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 report
Our management uses non-GAAP financial measures, in conjunction with GAAP financial measures, as an integral part of managing our business and to, among other things: (i) monitor and evaluate the performance of our business operations and financial performance; (ii) facilitate internal comparisons of the historical operating performance of our business operations; (iii) review and assess the operating performance of our management team; (iv) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (v) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments.
Previous report
In prior periods, we reported Total Generated Premium (TGP) as a key operating metric to provide a comprehensive view of the premium volume across all our business platforms. We defined TGP as the sum of Gross Written Premium (GWP) and Gross Placed Premium, reflecting the total premium volume placed, regardless of how we structured reinsurance treaties or the amount of risk retained.
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Reworded paragraphs (47)
Previous wording
Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “we,” “our,” “Hippo” and “the Company” refer to the business and operations of Hippo Holdings Inc. and its consolidated subsidiaries. You should read the following discussion of our financial condition and results of operations in conjunction with our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC.
Current wording
Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “we,” “our,” “Hippo” and “the Company” refer to the business and operations of Hippo Holdings Inc. and its consolidated subsidiaries.
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 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.
Current wording
Hippo is an insurance holding company with subsidiaries that provide property and casualty insurance products to both individuals and business customers primarily in the United States. We conduct insurance underwriting through our regulated carrier subsidiaries and generate revenue from a combination of insurance underwriting activities and fee- and commission-based services. Our operations include providing insurance capacity and related services for our owned MGA and in partnership with third-party MGAs and fee-based and commission-based services that support the placement and servicing of insurance policies.
Previous wording
We maintain a comprehensive reinsurance program to manage risk exposure, reduce earnings volatility, and safeguard capital. By ceding a portion of our underwriting risk to highly rated reinsurers and alternative capital providers, we limit the financial impact of catastrophe events. Nevertheless, we remain ultimately responsible for policyholder claims should a reinsurer fail to perform.
Current wording
We maintain a comprehensive reinsurance program to manage risk exposure, reduce earnings volatility, and safeguard capital. By ceding a portion of our underwriting risk to highly rated reinsurers and alternative capital providers, we limit the financial impact of catastrophe events and large loss activity. Nevertheless, we remain ultimately responsible for policyholder claims should a reinsurer fail to perform.
Previous 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.
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 is primarily 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 our MGA.
Current wording
Additionally, we utilize collateralized reinsurance through Mountain Re Ltd., a Bermuda-based special purpose insurer. The catastrophe bonds issued through Mountain Re Ltd. provide multi-year per occurrence coverage for a range of perils for business written through our MGA.
Previous wording
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 wording
The following table summarizes our net earned premiums by line of business for each period:
Previous wording
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 wording
For the three months ended March 31, 2026, commission income was $12.7 million, a decrease of $1.7 million, or 12%, compared to $14.4 million for the three months ended March 31, 2025. The decrease was due primarily to a decrease in agency commissions of $5.4 million due to the sale of our homebuilder distribution network in the third quarter of 2025, partially offset by an increase in fronting fee revenue of $4.2 million earned from third-party MGA program partners, driven by growth across our Commercial Multi-Peril and Casualty lines.
Previous 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.
Current wording
For the three months ended March 31, 2026, service and fee income was $3.2 million, an increase of $0.4 million, or 14%, compared to $2.8 million for the three months ended March 31, 2025.
Previous 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.
Current wording
For the three months ended March 31, 2026, net investment income was $6.7 million, an increase of $0.9 million, or 16%, compared to $5.8 million for the three months ended March 31, 2025. The increase was due primarily to higher average balance in cash and investments during the period. The Company’s investment portfolio is primarily comprised of securities issued by the U.S. government and agencies, money market accounts, high-grade corporate securities, residential and commercial mortgage-backed securities, and other governmental related securities.
Previous wording
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 wording
For the three months ended March 31, 2026, losses and loss adjustment expenses were $47.5 million, a decrease of $44.9 million, or 49%, compared to $92.4 million for the three months ended March 31, 2025 due primarily to losses from a series of destructive wildfires affecting Los Angeles, California (the “LA Wildfires”) in the first quarter of 2025. Losses and loss adjustment expenses consisted of the following elements during the respective periods:
Previous wording
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 wording
Included in our catastrophe loss ratio for the three months ended March 31, 2026 is a benefit of 1 percentage point related to prior year favorable developments, whereas for the three months ended March 31, 2025, there was no benefit related to prior year developments.
Previous 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.
Current wording
Included in our non-catastrophe loss ratio for the three months ended March 31, 2026, is a benefit of 2 percentage points related to prior year developments, whereas for the three months ended March 31, 2025, there was a benefit of 4 percentage points related to prior year favorable developments.
Previous 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.
Current wording
For the three months ended March 31, 2026, insurance related expenses were $34.9 million, an increase of $4.7 million, or 16%, compared to $30.2 million for the three months ended March 31, 2025. The increase was due primarily to an increase in net acquisition expenses of $4.8 million due to increased premium.
Previous 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.
Current wording
For the three months ended March 31, 2026, technology and development expenses were $9.4 million, an increase of $1.3 million, or 16%, compared to $8.1 million for the three months ended March 31, 2025. The increase was due primarily to higher employee-related costs of $1.2 million due to increase in headcount.
Previous 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.
Current wording
For the three months ended March 31, 2026, sales and marketing expenses were $6.3 million, a decrease of $2.6 million, or 29%, compared to $8.9 million for the three months ended March 31, 2025. The decrease was due primarily to a decrease in employee-related costs of $2.0 million, including a decrease in stock-based compensation of $0.3 million, due to a decrease in headcount due to the sale of our homebuilder distribution network. The decrease was also due to the elimination of $0.6 million in amortization of intangible assets acquired in connection with our homebuilder distribution network, which was sold in the third quarter of 2025.
Previous 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.
Current wording
For the three months ended March 31, 2026, general and administrative expenses were $16.2 million, a decrease of $0.3 million, or 2%, compared to $16.5 million for the three months ended March 31, 2025. The decrease was due primarily to a decrease in employee-related expenses of $0.3 million.
Previous 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.
Current wording
For the three months ended March 31, 2026 and 2025, income tax expense was $0.1 million and benefit of $0.2 million, respectively.
Previous 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.
Current wording
For the three months ended March 31, 2026, net income attributable to Hippo was $7.1 million, a change of $54.8 million compared to a net loss attributable to Hippo of $47.7 million for the three months ended March 31, 2025 due to the factors described above.
Previous wording
We regularly review the following key operating and financial metrics in order to evaluate our business, measure our performance, identify trends in our business, prepare financial projections, and make strategic decisions.
Current wording
We regularly review the following operating and financial metrics to evaluate our business, measure our performance, identify trends in our business, prepare forecasts, and make capital allocation and strategic decisions. Certain metrics discussed below are non-GAAP financial measures. Management uses non-GAAP measures to evaluate operating performance and trends that may not be apparent from GAAP results alone. Non-GAAP measures should be considered supplemental to, and not a substitute for, the most directly comparable GAAP measures, and may not be comparable to similarly titled measures used by other companies. Reconciliations of the non-GAAP measures to the most directly comparable GAAP measures are provided below. For certain non-GAAP financial measures that are expressed as ratios or per-share amounts, the reconciliation to the most directly comparable GAAP financial measure is provided through the calculation of the measure using GAAP components, as presented below.
Previous wording
Gross written premium is the amount received or to be received for insurance policies written or assumed by us and our affiliates as a carrier or captive reinsurer, without reduction for policy acquisition costs, reinsurance costs, or other deductions. The volume of our gross written premium in any given period is generally influenced by:
Current wording
Gross written premium (“GWP”) is the amount received or to be received for insurance policies written or assumed by us and our affiliates as a carrier or captive reinsurer, without reduction for policy acquisition costs, reinsurance costs, or other deductions. The volume of our gross written premium in any given period is generally influenced by:
Previous wording
Ceded written premium is the amount of gross written premium written or assumed by us and our affiliates as a carrier that we cede to reinsurers. We enter into reinsurance contracts to limit our exposure to losses, as well as to provide additional capacity for growth. Ceded written premium is treated as a reduction from gross written premium. The volume of our ceded written premium is impacted by the level of our gross written premium and decisions we make to increase or decrease retention levels.
Current wording
Ceded written premium (“CWP”) is the amount of gross written premium written or assumed by us and our affiliates as a carrier that we cede to reinsurers. We enter into reinsurance contracts to limit our exposure to losses, to provide additional capacity for growth, and to support our fronting business. Ceded written premium is treated as a reduction from gross written premium. The volume of our ceded written premium is impacted by the level of our gross written premium and decisions we make to increase or decrease retention levels, as well as the volume of our fronting business.
Previous wording
Net written premium is calculated as the amount of gross written premium written less ceded written premium.
Current wording
Net written premium (“NWP”) is calculated as the amount of gross written premium written less ceded written premium.
Previous wording
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 wording
The following table summarizes our gross written premiums by line of business:
Previous wording
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 wording
The following table summarizes our net written premiums by line of business:
Previous wording
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 wording
Net retention, calculated as net written premium divided by gross written premium, was 31% and 48%, for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
We define expense ratio as 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. We use the expense ratio to measure our operating performance. Other companies may define expense ratio differently.
Current wording
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 service and fee income, to net earned premiums. Management uses this metric to evaluate operating leverage, cost efficiency, effectiveness of pricing, and expense management actions. Other companies may define expense ratio differently.
Previous wording
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 wording
Combined ratio is defined as the sum of the net loss ratio and the expense ratio. Management uses the combined ratio as a comprehensive measure of underwriting profitability. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss. Management uses this metric to evaluate our operating performance.
Previous wording
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 wording
Adjusted Net Income (Loss) is a non-GAAP financial measure, defined as net income (loss) 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.
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 (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.
Current wording
Management uses this measure to evaluate our underlying business performance. Adjusted net income (loss) does not reflect the overall profitability of our business.
Previous wording
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 wording
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. Management uses this measure to assess performance on a per-share basis across periods. Diluted adjusted earnings (loss) per share should not be viewed as a substitute for diluted earnings (loss) per share calculated in accordance with GAAP, and other companies may define diluted adjusted earnings (loss) per share differently.
Previous wording
Tangible book value per share is calculated as follows:
Current wording
Diluted adjusted earnings (loss) per share is calculated as follows:
Previous wording
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 wording
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. Management uses this measure to evaluate capital efficiency and returns generated on deployed capital. Annualized adjusted return on equity should not be viewed as a substitute for return on equity calculated using unadjusted GAAP numbers, and other companies may define adjusted return on equity differently.
Previous wording
We define tangible book value per share 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. We use tangible book value per share internally to evaluate changes from period to period in book value per share exclusive of changes in intangible assets. Tangible book value per share should not be viewed as a substitute for book value per share calculated in accordance with GAAP, and other companies may define tangible book value per share differently.
Current wording
Tangible Book Value Per Share is a non-GAAP financial measure defined as total stockholders’ equity, less intangible assets and capitalized internal use software, divided by the outstanding number of shares of our common stock at the end of the relevant period. Management uses this measure to evaluate changes from period to period in book value per share exclusive of changes in intangible assets in order to assess capital position and balance sheet strength. Tangible book value per share should not be viewed as a substitute for book value per share calculated in accordance with GAAP, and other companies may define tangible book value per share differently.
Previous 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.
Current wording
Our existing sources of liquidity include cash and cash equivalents and marketable securities. As of March 31, 2026, we had $275.4 million of cash, $29.4 million of restricted cash, and $423.9 million of available-for-sale fixed income securities and short-term investments. We believe our cash, cash equivalents and short-term securities will be sufficient to fund our operations for at least the next twelve months following the date of this Quarterly Report on Form 10-Q.
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 September 30, 2025, is $42.4 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 March 31, 2026, is $55.5 million, and there were no outstanding amounts under this agreement.
Previous wording
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.
Current wording
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 supports our operational and growth initiatives.
Previous 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.
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. While we have achieved profitability in recent quarters, we cannot assure that we will continue to 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. However, 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
The following table summarizes our cash flows for the periods presented (in millions):
Current wording
The following table summarizes our cash flows for the periods presented:
Previous 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.
Current wording
Cash provided by operating activities was $8.5 million for the three months ended March 31, 2026, a change of $44.1 million, from cash used in operating activities of $35.6 million for the three months ended March 31, 2025. The increase was due primarily to an increase in net income of $52.5 million and favorable working capital movements in unearned premiums, reinsurance payable, and deferred acquisition costs, partially offset by growth-related increases in accounts receivable, ceding commissions receivable, and prepaid reinsurance premiums.
Previous 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.
Current wording
Cash provided by investing activities was $42.5 million for the three months ended March 31, 2026, due primarily to the maturities of investment securities and the proceeds of deferred consideration, partially offset by purchases of investment securities.
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Net Losses and Loss Adjustment Expense ratios
Current report — wording carried from elsewhere
Losses and loss adjustment expenses consisted of the following components during the respective periods:
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
Net (Income) Loss Attributable to Hippo
Previous report — wording carried elsewhere
Diluted Adjusted Earnings (Loss) per Share
Previous report — wording carried elsewhere
We define diluted adjusted earnings (loss) per share 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. We use adjusted net income (loss) per share, diluted 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. Diluted adjusted earnings (loss) per share should not be viewed as a substitute for diluted earnings per share calculated in accordance with GAAP, and other companies may define diluted adjusted earnings (loss) per share differently.
Previous report — wording carried elsewhere
We define annualized adjusted return on equity as adjusted net income (loss) expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. We use annualized adjusted return on equity 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. Annualized adjusted return on equity should not be viewed as a substitute for return on equity calculated using unadjusted GAAP numbers, and other companies may define adjusted return on equity differently.