Hippo raises 2026 adjusted net income guidance to $77–80 million
Key Facts
Hippo announced its third-quarter results on a call held on October 29, 2026, attended by CEO Richard McCathron and CFO Guy Zeltser. Gross written premiums were $498.1 million, compared with $311.2 million in the same period of 2025. Revenue rose to $156 million from $120.6 million. Net income was $8.8 million, versus $98.1 million a year earlier, while adjusted net income increased to $20 million from $18.3 million. The combined ratio also improved to 98.4% from 99.6%, results that led the company to raise its full-year adjusted earnings outlook and lower its targeted combined ratio.
The year-over-year comparison in net income alone does not reflect the trajectory of recurring operating performance; the third quarter of 2025 included a $95 million gain from the sale of a distribution network tied to homebuilders. That gain lifted the comparison base for the quarter, while adjusted net income in the current quarter rose to $20 million from $18.3 million. Written premiums and revenue increased, alongside a decline in the combined ratio, a measure of underwriting performance in insurance. Investing.com reported adjusted earnings per share of $0.74, compared with analysts' estimate of a loss of $0.01 per share. Actual revenue of $156 million also exceeded the consensus estimate of $153.4 million.
Management attributed premium growth to broader activity across its four business lines. McCathron said continued expansion among existing program partners supported its accident and commercial multi-peril businesses, alongside accelerating growth in homeowners insurance. This indicates that portfolio growth was not limited to homeowners, with commercial and accident lines contributing to the increase in premiums. The CEO said growth among existing partners was one of the performance drivers, as the company reported results amid changing competitive conditions in the property market. The available information did not specify how the increase was distributed among business lines or how much each contributed.
Management said competition in the property insurance market is intensifying, and ample reinsurance capacity is enabling lower prices and softer terms and conditions. Still, the company sees the overall operating environment as conducive to profitable growth. These conditions put underwriting discipline and business selection at the center of preserving profitability in a market where reinsurance availability can push prices lower. Management's comments did not provide a figure measuring the impact of competition or price changes on quarterly results. HIPO shares closed at $37.71 on October 28, before the results were announced; they then rose 4.75% to $39.50 in premarket trading on October 29, according to Investing.com.
Hippo raised its 2026 fiscal-year gross written premium guidance to $1.70–1.75 billion, from $1.65–1.70 billion previously. It also increased its revenue outlook to $585–590 million, compared with a previous range of $580 to $585 million. On profitability, the company lowered its expected combined ratio range to 97–98% from 99–101%, and raised its adjusted net income outlook to $77–80 million from $62–70 million. The revisions lift its growth and earnings outlook while reflecting an improvement in its targeted underwriting result. The company expects to execute on this guidance over the remainder of fiscal 2026.
McCathron announced a partnership with Greenlight Re that gives Hippo the opportunity to become the preferred insurer for programs run by emerging managing general agencies. He said the partnership also creates an opportunity to invest in those companies alongside its partner. The initiative links insurance coverage for emerging companies with the expansion of program channels that could support premium growth. The announcement came as management cited the expansion of existing program partners as a growth driver in its accident and commercial multi-peril lines. The announcement did not include a specific launch date for the programs or a target value for the resulting premiums.