Hippo returned to profitability in the first quarter of 2026, with a net profit of $7 million, compared with a net loss of $48 million in the same period a year earlier, thanks to significantly stronger underwriting results.
The insurance company’s net loss ratio in the first quarter of this year was 48%, an improvement of 58 percentage points from the same period in 2025.
The company attributed the gain primarily to lower catastrophe losses, as it was severely impacted by the California wildfires in the same period last year.
Hippo also reportedly made progress on the cost front, with its expense ratio increasing by 2 percentage points to 51.5%, supported by continued operating leverage.
As a result, the combined ratio increased by 60 percentage points to 99.5%, and underwriting performance was close to breakeven.
At the same time, the company disclosed that gross written premiums increased 58% year-on-year to $332 million in the first quarter of 2026, driven by expansion in casualty and commercial multiple lines (CMP), which increased 193% and 89% to $101 million and $96 million, respectively.
The company said its growth strategy continues to prioritize underwriting profitability and reducing volatility, including through greater portfolio diversification.
By business portfolio, accident insurance accounted for 30% of total written premiums in the quarter, followed by CMP (accounting for 29%) and homeowners insurance (accounting for 26%), highlighting a more balanced investment portfolio.
Hippo’s total revenue in the first quarter of 2026 reached $122 million, an increase of 10% from $110 million in the same period last year.
The growth was said to be driven by a 13% rise in net premiums earned to $99 million, which more than offset a $5.5 million decline in commission income following the sale of the homebuilder distribution network in the third quarter of 2025.
Rick McCathron, President and CEO of Hippo, commented: “We are off to a fast start in 2026, significantly advancing our growth and operational efficiency strategies. Our strategic distribution relationship with Progressive, coupled with our existing Westwood partnership, creates a truly differentiated distribution network for Hippo’s homeowners products that is both technology-enabled and scale-enabled.”
“Technology has long been a source of strength for Hippo and is central to supporting these newly expanded distribution channels. Over time, our AI-driven transformation in claims, service and underwriting should both support Hippo’s growth and improve profitability.
“During the quarter, Hippo’s total premiums written increased 58%, our underwriting results improved significantly, our combined ratio decreased by 60 percentage points, and we continued to deliver positive net income of $7 million and adjusted net income of $17 million for the quarter.
“We operate as a unified, technology-native carrier platform that drives profitable growth, expands diversity and positions us for long-term success.”