Hippo Holdings, the technology-native insurance platform, reported net income of $10 million for the quarter ended June 30, 2026, up from $1 million in the same period last year, as the company posted its fifth consecutive quarter of profitability on both a stated and adjusted basis.
Gross written premium rose 61.5% year over year to $482 million, while adjusted net income increased 23.5% to $21 million, or $0.79 per diluted share. The combined ratio improved four percentage points to 95.8%, driven largely by an eight-point improvement in the expense ratio to 45.4%, even as the net loss ratio rose to 50.4% from 47.0% a year earlier, a shift the company attributed to weaker favorable prior-year reserve development this quarter than last.
Revenue grew 23.4% to $145 million, helped by a 26% increase in net earned premium alongside higher investment, commission and fee income.
The growth was concentrated outside Hippo's traditional homeowners base. Casualty premium rose 177% year over year to $180 million and commercial multi-peril premium rose 65% to $138 million, together accounting for two-thirds of gross written premium in the quarter, with casualty net written premium alone climbing from $1.5 million to $35 million. Homeowners represented just 22% of gross written premium, underlining a broader shift from a homeowners-focused insurer toward a diversified, multi-line platform serving both owned and partner managing general agents across all 50 states.
"The power of the Hippo platform was truly on display this quarter, as we delivered significant top and bottom-line growth, while simultaneously advancing our AI initiatives and strengthening our business partnerships," said Rick McCathron, Hippo's president and CEO.
McCathron added that the results reflected sustained performance rather than a single strong quarter, pointing to increased confidence in the platform's execution.
Hippo raised its full-year 2026 guidance for the second time this year, now expecting gross written premium of $1.65 billion to $1.7 billion, up from a prior range of $1.45 billion to $1.525 billion, and adjusted net income of $62 million to $70 million, up from $48 million to $56 million.
The company also lowered its expected full-year combined ratio to a range of 99% to 101%, from 103% to 105% previously, and cut its projected catastrophe loss ratio to 10% from 13%, helped in part by the absence of a repeat of the Los Angeles wildfire losses that weighed on results in early 2025.
Hippo separately lifted its longer-term 2028 gross written premium target to more than $2.5 billion, from at least $2 billion previously.
Shares rose more than 5% in premarket trading following the results, extending a run that has pushed analyst price targets on the stock as high as $43.
Hippo's results reflect a wider shift among technology-focused insurers from cash-burning growth models toward operating profitability, though the sector remains split on how far that shift has progressed.
The company posted a net loss of $46.4 million over the first six months of 2025; for the same period this year, net income reached $17.2 million. That reversal has coincided with structural changes to how Hippo manages risk, including a new group catastrophe reinsurance structure, the issuance of catastrophe bonds, and a whole-account quota share arrangement placed effective June 1, 2026 to manage portfolio volatility as the company scales into higher-retention casualty and commercial lines.
The contrast with rival insurtech Lemonade, which reported its own second-quarter results the same week, is notable.
Lemonade posted a net loss of approximately $43 million despite revenue growth of 79% to $294.4 million and an improved net loss ratio of 61%, down from 69% a year earlier, and its shares fell more than 20% after investors reacted to softer second-half guidance.
Where Lemonade continues to prioritize scale and in-force premium growth ahead of near-term profitability, Hippo's smaller, more diversified book has now delivered five straight profitable quarters, positioning it differently in a sector where investors are increasingly distinguishing between insurtechs that have reached sustainable underwriting profitability and those still funding growth through ongoing losses.
For insurance professionals, Hippo's pivot away from concentrated homeowners exposure and toward a diversified MGA platform model illustrates a path some insurtechs are taking to manage catastrophe volatility while pursuing growth, using fronting arrangements and reinsurance structuring to expand into new lines without carrying the full tail risk themselves.
Whether that model can sustain profitability through a more active catastrophe season, rather than benefiting from a relatively quiet first half, will be an important test of how durable the turnaround proves to be.
