Hippo Holdings raises 2026 revenue outlook after strong premium growth
Key Facts
Hippo raised its fiscal 2026 revenue guidance to a range of $585 million to $590 million, from $580 million to $585 million, in an update announced on October 29. The company also raised its 2026 gross written premium outlook to $1.70–$1.75 billion, from $1.65–$1.70 billion. At the same time, it lifted its expected adjusted net income range to $77–$80 million, from $62–$70 million. The revisions put business growth and improved profit expectations at the center of the results update, while loss indicators remained part of the quarter’s operating picture.
Third-quarter revenue was $156.0 million, compared with $120.6 million a year earlier. The company said the quarterly revenue increase was driven mainly by 29% growth in net earned premiums to $128 million, alongside higher investment income, commissions and service fees. Adjusted net income rose to $20.0 million from $18.3 million in the third quarter of 2025. Reported net income fell to $8.8 million from $98.1 million, after the prior-year results benefited from a $91 million net gain on the sale of a homebuilders distribution network. The reported profit comparison therefore reflects the effect of that prior gain, while adjusted earnings showed a more modest increase during the quarter.
Premium growth was led by the accident insurance and commercial multi-peril lines; premiums in the former rose 146% to $187.6 million, while those in the latter climbed 63% to $107.8 million. The chief executive said the increase extended across the four main business lines and that the company “will remain selective and write more business only where we see attractive underwriting economics.” But net written premiums were $149.1 million, compared with $117.9 million, growing at a slower pace than gross premiums. The net retention ratio fell to 30% from 38% a year earlier. The company linked the decline to a mix of faster-growing business lines with lower retention, showing that gross premium growth does not fully translate into premiums retained by the company.
The combined ratio improved to 98.4% in the third quarter from 99.6% a year earlier, despite the catastrophe loss ratio rising to 6.5% from a negative 0.3% in the year-earlier period. The net loss ratio rose to 56.7% from 47.6%, reflecting the return of catastrophe losses after they were nearly absent in the third quarter of 2025. In its annual guidance update, Hippo lowered its expected combined ratio range to 97–98% from 99–101%. It also reduced its catastrophe loss ratio estimate to 8% from 10%. This balances improved annual expectations against higher losses recorded in the quarter, making combined ratio performance and revised guidance key elements in assessing the results.
A report published by Investing.com and attributed to Reuters said Hippo shares rose 4.75% in premarket trading on October 29 to $39.50. The report said the company posted adjusted earnings of $0.74 per share, compared with an expected loss of $0.01, and revenue of $156 million against estimates of $153.4 million. The company had scheduled its third-quarter results call for October 29, 2026, at 8:00 a.m. Eastern time. The premarket move came on the day results were announced, while the available evidence does not include subsequent prices or a documented trading range for October 30. The guidance update reflects the company’s estimates for fiscal 2026, while quarterly figures and underwriting and loss indicators measure performance in the quarter for which it reported results.