Home insurance group Hippo announced its financial results for the fourth quarter of 2025, with net profit of US$6 million, total premiums increasing by 40%, and the combined ratio improving to 99%.
Net income for the fourth quarter of 2025 compared to net income of $44 million for the fourth quarter of 2024, which included a one-time sales gain of $46 million.
Full-year 2025 net income was $58 million, a significant improvement from 2024’s net loss of $41 million.
Hippo said the improvement was driven by improved underwriting results and gains from sales in the homebuilder’s distribution network.
Adjusted net income in the fourth quarter of 2025 was $18 million, compared with adjusted net income in the fourth quarter of last year of $15 million. Results for the quarter were equivalent to an annualized adjusted return on average shareholders’ equity of 16%.
In 2025, adjusted net income will be $18 million, compared with adjusted net loss of $20 million in 2024. The full-year results were equivalent to an annualized adjusted return on average shareholders’ equity of 4%.
Total revenue in the fourth quarter of 2025 was $120.4 million, a slight increase from $102.0 million in the fourth quarter of 2024. Total revenue in 2025 reaches $468.6 million, compared with $372.1 million in 2024.
Hippo also reported gross written premiums (GWP) of $288 million in the fourth quarter of 2025, up from $205.6 million in the fourth quarter of 2024. Growth was primarily driven by casualty and commercial multi-risk (CMP) lines, which increased 169% and 58% year-over-year to US$88 million and US$65 million, respectively.
The expansion offset a 5%, or $5 million, year-over-year decrease in homeowners coverage, according to the insurer.
For the whole of 2025, global warming potential increased by 24% from the previous year to US$1.1 billion. This was driven primarily by casualty insurance (up 92% to $264 million) and CMP (up 75% to $265 million), making CMP the second-largest business segment after homeowners insurance (down 10% to $379 million).
Net written premiums for the quarter were $97 million, an increase of $18 million, or 23%, from last year’s fourth quarter. The main drivers of this growth are the Renters and CMP series. Net written premiums for the year were US$422 million, an increase of US$50 million, or 13%, over last year.
Compared with the fourth quarter of 2024, the net loss ratio decreased by 12 percentage points to 46% in the fourth quarter of 2025. Hippo noted that this improvement was primarily due to the absence of meaningful catastrophe (CAT) losses in the quarter compared to last year’s fourth quarter.
The full-year net loss rate dropped significantly to 60%, an improvement of 17 percentage points from the previous year. This improvement is due to lower losses in the CAT (catastrophe) and non-CAT categories compared to 2024.
The combined ratio increased significantly to 99% this quarter, an increase of 8 percentage points from the previous year. The improvement was driven by better underwriting results, which more than made up for the small increase in expenses.
The insurer said the rise in charges was mainly attributable to two factors: the sale of its homebuilder network and a one-off CAT allowance refund recorded in the fourth quarter of 2024 (Q4 2024).
For the full year of 2025, the combined ratio was 113%. Compared with 138% in 2024, the combined ratio increased by 25 percentage points, the loss rate decreased by 17 percentage points, and the expense ratio decreased by 8 percentage points.
Rick McCathron, President and Chief Executive Officer of Hippo, commented, “We ended 2025 with strong momentum, as evidenced by our 40% growth in total premiums written, net and adjusted revenue, and fourth quarter underwriting profit. Looking ahead to 2026, I am excited about Hippo’s prospects for increasing diversity, strong growth, and continued improvement in profitability.”
“This progress reflects the efforts of our team over the past several years, exemplified by our recent relaunch of our homeowners business outside of builders with select partners. Together, these developments strengthen our confidence in achieving our goals of exceeding $2 billion in gross written premiums and over $125 million in adjusted net income by the end of 2028.”