Hippo Holdings has reported its first operating profit, posting positive net income from core activities in the second quarter of 2025 as the insurtech group continues its shift toward profitability.
The California-based company, which operates a hybrid fronting and homeowners insurance platform, said revenue for the quarter rose 31% year-on-year to $117 million. The increase was attributed to growth in gross earned premium and improved premium retention. Gross written premium rose 16% to $229 million.
“We stacked another strong quarter, with more than 30% revenue growth, a major improvement in our net loss ratio, and increased operating leverage,” said Hippo president and CEO Rick McCathron. “We also announced a strategic partnership that will accelerate our growth and diversification, while strengthening our balance sheet with a $100 million capital infusion.”
The company noted a 46-point improvement in its consolidated net loss ratio, which declined to 47% from 93% in the same quarter last year. Its core homeowners’ unit, HHIP, reported a net loss ratio of 55%, down from 113% a year ago. The non-catastrophe (non-PCS) loss ratio improved to 42%, while the PCS loss ratio fell to 13%, helped by a 7-point benefit from reserve releases.
Operating efficiency also improved. Fixed expenses, including sales and marketing, technology and development, and general and administrative costs, fell by $6 million year-on-year.
On a GAAP basis, net income attributable to Hippo reached $1 million, compared to a $40 million net loss in the prior-year period. Adjusted net income totaled $17 million, a $37 million improvement year-on-year.
Hippo also strengthened its financial position. Cash and investments, excluding restricted cash, rose by $76 million quarter-on-quarter to $604 million, primarily due to the issuance of a $50 million surplus note. Its hybrid fronting carrier, Spinnaker Insurance, reported a surplus of $223 million, up from $202 million a year earlier.
