Home insurance group Hippo has announced its financial results for the fourth quarter of 2025, reporting $6 million in net income, 40% gross written premium growth, and an improved combined ratio of 99%.
Net income in Q4 2025 compares to a $44 million net income in Q4 2024, which included a $46 million one-time gain on sale.
For the full year 2025, net income was $58 million, a significant improvement compared to the $41 million net loss seen in 2024.
According to Hippo, the drivers of this improvement included improved underwriting results and the gain on the sale of the home builder distribution network.
Adjusted net income for Q4 2025 was $18 million, compared to a $15 million adjusted net income in Q4 of last year. This quarter’s results equate to a 16% annualised adjusted return on average shareholders’ equity.
For 2025, adjusted net income was $18 million, which compares to the $20 million adjusted net loss in 2024. The full year’s results equate to a 4% annualised adjusted return on average shareholders’ equity.
Total revenue for Q4 2025 stood at $120.4 million, a slight increase compared to Q4 2024’s $102.0 million. 2025’s total revenue reached $468.6 million, which compares to 2024’s $372.1 million.
Hippo also reported $288 million in gross written premiums (GWP) for Q4 2025, up from $205.6 million in Q4 2024. Growth was driven primarily by Casualty and Commercial Multi-Peril (CMP) lines which were up 169% and 58% over the prior year period, to $88 million and $65 million, respectively.
According to the insurer, this expansion more than off-set a 5%, or $5 million, reduction in the Homeowners line year over year.
For the full year 2025, GWP expanded by 24% over the prior year to $1.1 billion. This was primarily driven by Casualty (up 92% to $264 million) and CMP (up 75% to $265 million), making CMP the second largest line of business after Homeowners, which saw a 10% decrease to $379 million.
Net written premium for the quarter of $97 million grew by $18 million or 23% from Q4 of last year. The main driver of this growth was the Renters and CMP lines. Net written premium for the year of $422 million grew by $50 million or 13% over last year.
Net loss ratio improved 12 percentage points in Q4 2025, to 46%, compared to Q4 2024. This improvement was driven primarily by the lack of meaningful catastrophe (CAT) losses in the quarter compared to Q4 of last year, Hippo noted.
The full-year net loss ratio decreased significantly to 60%, marking a 17 percentage point improvement from the previous year. This improvement was a result of reduced losses in both the CAT (catastrophe) and non-CAT categories compared to 2024.
The combined ratio for the quarter improved significantly to 99%, an 8-percentage-point gain compared to the previous year. This improvement was driven by better underwriting results, which more than compensated for a slight increase in expenses.
According to the insurer, the rise in expenses was mainly due to two factors: the sale of the home builder network and a one-time CAT allowance chargeback recorded in the fourth quarter of 2024 (Q 4 2024).
For the full year 2025, a combined ratio of 113% was improved by 25 points compared to 138% in 2024, driven by a 17 percentage point lower loss ratio and an 8 percentage point lower expense ratio.
Rick McCathron, Hippo President and CEO, commented: “We closed 2025 with strong momentum, evidenced by our 40% gross written premium growth, positive net and adjusted income, and an underwriting profit in the fourth quarter. Looking ahead to 2026, I am excited about Hippo’s prospects for increased diversification, strong growth, and continued improvement in profitability.
“This progress reflects our team’s efforts over the last several years, and is exemplified most recently by the relaunch of our homeowners business outside of builders with select partners. Together, these developments reinforce our confidence in achievement of our targets of over $2 billion of gross written premium and over $125 million of adjusted net income by the end of 2028.”
