Key Highlights

  • Diluted EPS of USD 0.33 topped the consensus estimate of USD 0.08; last year USD 3.77 included a sale gain.
  • Revenue of USD 156.0 million rose 29% and edged above the consensus estimate of USD 153.88 million.
  • Gross Written Premium jumped 60% to USD 498.1 million, led by commercial multi-peril, casualty and New York business.
  • Combined ratio improved to 98.4% from 99.6%, while diluted adjusted EPS reached USD 0.74 against USD 0.70.

Hippo Holdings Inc. (NYSE:HIPO) reported third quarter 2026 Diluted Earnings per Share of USD 0.33, well above a consensus estimate of USD 0.08. Total Revenue of USD 156.0 million rose 29% from USD 120.6 million and came in slightly above a consensus estimate of USD 153.88 million. Net Income was USD 8.8 million, compared with USD 98.1 million a year earlier, when a USD 95.0 million gain on the sale of a Business lifted results and diluted EPS reached USD 3.77.

Premium Growth Shifts the Mix

Gross written premium reached USD 498.1 million from USD 311.2 million, and net written premium rose to USD 149.1 million from USD 117.9 million. Net Earned Premium grew 29% to USD 128.3 million, driven by commercial multi-peril, up 88% to USD 25.9 million, and casualty, up from USD 3.2 million to USD 15.9 million. Homeowners earned premium rose 3% to USD 66.1 million. Commission income climbed 49% to USD 15.6 million on fronting fees from third party program partners.

By state, New York accounted for USD 99.3 million of gross written premium, 20% of the total, versus USD 13.8 million a year earlier, and California contributed USD 101.7 million. Net Investment income increased 10% to USD 8.0 million.

Loss Ratio, Reinsurance and Valuation Allowance

The net loss ratio rose to 56.7% from 47.6%. Catastrophe losses were USD 8.3 million, tied to convective storm, weather and wildfire activity, against an immaterial amount last year, and the non catastrophe loss ratio increased to 50.2% from 47.9% because of the shift toward commercial multi-peril and casualty lines that carry higher loss ratios. The expense ratio fell to 41.7% from 52.0%, which brought the combined ratio to 98.4%.

The company placed a whole account Quota share on June 1, 2026, and consolidated several program level contracts into one group catastrophe structure with an occurrence limit of USD 512.9 million and an aggregate limit of USD 776.9 million. The company sees a reasonable possibility of having sufficient evidence to release a significant portion of its tax valuation allowance within the next several quarters, which would create a material non cash income tax benefit; timing and amount remain subject to change.

Metrics to Track Into the Next Report

Several markers stand out. Gross written premium of USD 498.1 million, with commercial multi-peril and casualty driving growth, sets the mix shift against the 56.7% net loss ratio. A second is the combined ratio of 98.4% against 97.9% for the nine months.

A third is returns and book value: annualized adjusted Return on Equity was 17.1%, down from 19.4%, and Book Value per share stood at USD 17.62 versus USD 16.97 at year end. A fourth is liquidity, with USD 311.8 million of cash, USD 499.1 million of available for sale securities and short term investments, and USD 124.2 million of nine month operating cash flow. Any timing update on the valuation allowance is a further item to follow.