Hippo swung to profitability in Q1 2026, reporting net income of $7 million compared with a $48 million net loss a year earlier, as underwriting performance strengthened materially.
The insurer posted a net loss ratio of 48% for the opening quarter of the year, an improvement of 58 percentage points from the same period of 2025.
The firm attributed the gain largely to lower catastrophe losses, as the prior-year period was heavily impacted by California wildfires.
Hippo also reportedly made modest progress on costs, with its expense ratio improving by 2 percentage points to 51.5%, supported by ongoing operating leverage.
As a result, the combined ratio improved by 60 percentage points to 99.5%, bringing underwriting performance close to breakeven.
Meanwhile, the firm disclosed that gross written premium rose 58% year on year to $332 million in Q1 2026, driven by expansion in Casualty and Commercial Multi-Peril (CMP), which increased 193% and 89% to $101 million and $96 million, respectively.
The company said its growth strategy continues to prioritise underwriting profitability and reduced volatility, including through greater portfolio diversification.
By business mix, Casualty accounted for 30% of gross written premium in the quarter, followed by CMP at 29% and Homeowners at 26%, highlighting a more balanced portfolio.
Hippo’s total revenue for Q1 2026 reached $122 million, up 10% from $110 million a year earlier.
The increase was said to be driven by a 13% rise in net earned premium 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, Hippo President and CEO, commented, “We got off to a fast start in 2026, significantly advancing our strategies on both growth and operational efficiencies. The launch of our strategic distribution relationship with Progressive, when—combined with our existing Westwood partnership —creates a truly differentiated distribution network for Hippo’s homeowners product that is both tech-enabled and scaled.
“Technology, which has long been a source of strength for Hippo, is core to supporting these new expanded distribution channels. Our AI-powered transformation across claims, services and underwriting should both support growth and increase profitability for Hippo over time.
“For the quarter, Hippo grew gross written premium by 58%, significantly improved our underwriting results with a 60 point reduction in our combined ratio, and continued to deliver positive net income $7 million of and adjusted net income of $17 million for the quarter.
“We are operating as a unified, technology-native carrier platform that is driving profitable growth, broadening diversification, and positioning us for long-term success.”
