Hippo (HIPO) investor relations material

Executive summary

• Q3 GWP rose 60.1% YoY to $498.1M and revenue grew 29.4% to $156.0M; adjusted net income increased 9.3% to $20.0M, with a 98.4% combined ratio.

• Fifth consecutive quarter of underwriting profitability; annualized adjusted ROE was 17.1%.

• Growth broadened beyond homeowners, led by Casualty and Commercial Multi-Peril, alongside underwriting discipline and expense leverage.

Financial highlights

• Q3 net income was $8.8M versus $98.1M in Q3 2025; the prior-year comparison included a $95.0M gain on sale of the homebuilder distribution network.

• Q3 diluted EPS was $0.33 and diluted adjusted EPS was $0.74; adjusted net income was $20.0M versus $18.3M a year earlier.

• Nine-month revenue was $422.2M versus $348.2M; adjusted net income was $58.2M versus $0.2M, while net income was $26.0M versus $51.7M.

• Q3 net earned premium increased 29% to $128.3M; commission income was $15.6M, service and fee income $4.1M, and net investment income $8.0M.

Outlook and guidance

• FY 2026 GWP guidance raised to $1.70B–$1.75B from $1.65B–$1.70B; revenue guidance raised to $585M–$590M from $580M–$585M.

• FY combined ratio guidance lowered to 97%–98% from 99%–101%, with the assumed CAT loss ratio reduced to 8% from 10%.

• FY adjusted net income guidance raised to $77M–$80M from $62M–$70M; NWP guidance is $565M–$580M and stock-based compensation plus D&A is expected to be $42M.

• Long-term targets include GWP above $2.5B and adjusted net income above $140M; the normalized combined ratio target is in the mid-90s by 2028.