Hippo Raises 2026 Premium and Profit Outlook

The Tip Desk · July 30, 2026 · 3 min read

The insurer now expects over $1.65 billion of gross written premium and upwards of $70 million of adjusted net income for the year.

Hippo Holdings (HIPO), a technology-native insurance platform, raised its full-year 2026 outlook after gross written premium growth accelerated to 61.5% in the second quarter, faster than the 58% pace in the first quarter.

The company now expects over $1.65 billion of gross written premium, upwards of $70 million of adjusted net income, a combined ratio of 99% to 101%, and a catastrophe loss ratio of 10%, versus prior ranges of $1.45 billion to $1.525 billion of premium, $48 million to $56 million of adjusted net income, a 103% to 105% combined ratio, and a 13% catastrophe loss ratio. It also lifted net written premium guidance to $565 million to $580 million and revenue guidance to $580 million to $585 million.

Gross written premium was $482.2 million for the three months ended June 30, 2026, up from $298.6 million a year earlier. President and CEO Rick McCathron said the quarter showed top- and bottom-line growth and that the results were a proof point rather than a one-time event.

Casualty and Commercial Multi-Peril carried the premium increase. Casualty gross written premium was $179.5 million, up 177% from $64.9 million, after 193% growth to $101 million in the first quarter. CMP gross written premium was $137.6 million, up 65% from $83.3 million. Casualty accounted for 37% of the quarter’s gross written premium, CMP 29% and Homeowners 22%. Homeowners gross written premium was $106.7 million.

Net written premium was $183.2 million, up 71% from $106.9 million a year earlier. Growth in net written premium exceeded growth in gross written premium because of a mix shift and a program reinsurance structure change that added about $21 million in CMP and $6 million in Casualty net written premium. Net retention was 38%, above the company’s full-year guidance of approximately 36%.

Revenue was $144.7 million, up 23.4% from $117.3 million a year earlier, after 10% growth to $121.5 million in the first quarter. The increase was primarily driven by higher net earned premium, up 26% to $118.7 million, and increases in net investment income, commission income and service and fee income.

Net income attributable to Hippo was $10.1 million, or $0.38 a share, compared with $1.3 million a year earlier. The improvement was driven primarily by stronger underwriting performance and the continued benefit of scale. Adjusted net income was $21.0 million, or $0.79 a share, up 23.5% from $17.0 million a year earlier. Annualized adjusted return on equity was 18.4%.

The combined ratio improved 4 percentage points to 95.8% from 100.1% a year earlier. The expense ratio improved 8 percentage points to 45.4% from 53.1%, reflecting continued improvement in operating leverage and expense discipline.

The net loss ratio was 50.4%, up 3 percentage points from 47.0% a year earlier. The change was largely driven by the prior-year period benefiting from 7% favorable prior-year development compared with 2% favorable development this quarter. The net accident-year loss ratio excluding catastrophe losses improved 1 percentage point to 45.8% from 46.4%.

Total Hippo stockholders’ equity was $466 million, up 7% from $436 million at year-end 2025. Book value per share was $17.65 at June 30, 2026, up 4.0% from $16.97 at year-end 2025. Tangible book value per share was $15.56.

The company has a single reportable segment and offers property and casualty insurance products. California and Texas each accounted for 18% of second-quarter gross written premium, New York 14% and Florida 12%.

McCathron said elevated confidence in executing as a unified, technology-native insurance platform led to the increase in full-year 2026 guidance.