Hippo Reports Third Quarter 2025 Financial Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
0mins
Source: PRnewswire
Financial Performance: Hippo Holdings Inc. reported a net income of $98 million for Q3 2025, a significant turnaround from a net loss of $9 million in Q3 2024, with gross written premiums increasing by 33% to $311 million.
Improved Ratios: The company achieved a net loss ratio of 48%, improving by 25 percentage points year-over-year, and a combined ratio of 100%, reflecting enhanced underwriting results and operational efficiency.
Revenue Growth: Total revenue for the quarter reached $121 million, a 26% increase from the previous year, driven by higher net earned premiums and a focus on underwriting profitability.
Strategic Focus: Hippo is aligning its operations with a strategy aimed at building a more efficient organization, expanding its platform to 36 programs, and ensuring adaptability to market changes for long-term success.
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Analyst Views on HIPO
Wall Street analysts forecast HIPO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HIPO is 39.50 USD with a low forecast of 34.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 30.650
Low
34.00
Averages
39.50
High
45.00
Current: 30.650
Low
34.00
Averages
39.50
High
45.00
About HIPO
Hippo Holdings Inc. is an insurance holding company with subsidiaries that provide property and casualty insurance products to both individuals and business customers. The Company's segments include Services, Insurance-as-a-Service, and Hippo Home Insurance Program. Services Segment is comprised of its Consumer Agency and First Connect. Consumer Agency sells home insurance policies from the Hippo Home Insurance Program and from third-party carriers, as well as other personal lines policies from third party carriers. First Connect Insurance Services business is a digital platform designed to support independent agents by providing access to some of the nation’s carriers. Insurance-as-a-Service segment is managed through the Company’s subsidiary Spinnaker Insurance Company and its subsidiaries. Insurance-as-a-Service segment is predominantly focused on providing insurance capacity to MGAs. Hippo Home Insurance Program segment is the Company’s Hippo-branded homeowners insurance business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AM Best Affirms Ratings for Spinnaker Insurance Company
- Financial Strength Rating: AM Best has affirmed Spinnaker Insurance Company and its wholly-owned subsidiaries with an A- (Excellent) and a Long-Term Issuer Credit Rating of 'a-' (Excellent), reflecting strong balance sheet strength and stable operating performance.
- Capital Support: Since its acquisition in 2020, Hippo Holdings Inc. has significantly supported Spinnaker's capital, driving a surplus growth of $50 million over the past five years, enhancing the company's financial flexibility.
- Operating Performance: Despite variability in reported earnings, Spinnaker has consistently outperformed the personal property industry composite in terms of pre-tax operating earnings, demonstrating its profitability and market competitiveness over the long term.
- Business Model: Spinnaker adopts a conservative approach to underwriting, ceding a majority of premiums to quota share reinsurers, focusing on short-tail programs like homeowners and renters' insurance, and is expected to further diversify its portfolio through a strategic partnership with The Baldwin Group.
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Hippo's Report: Homeowner Satisfaction Rises Amid Financial Strain
- Increased Buyer Satisfaction: The 2026 Housepower Report from Hippo reveals that 56% of homeowners have no regrets about their purchases, down from 63% in 2021, indicating a recovery in homeowner satisfaction, although they still face pressures related to maintenance and costs.
- Rising Maintenance Needs: With 57% of homeowners purchasing older homes, and 51% built before 1990, maintenance demands are increasing, as evidenced by 71% of homeowners neglecting HVAC servicing, which could lead to costly repairs.
- Significant Financial Strain: A striking 76% of homeowners report that home-related issues have impacted their financial stability, with 85% of Gen Z feeling financial pressure, highlighting a tightening budget for maintenance and unexpected repairs.
- Insufficient Extreme Weather Preparedness: Despite 34% of homeowners facing heat wave risks, only 32% feel confident in their ability to prepare for extreme weather events, indicating a lack of preparedness for climate change and a need for better insurance and protection plans.
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