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Jun 30
Hippo Holdings Q2 2025 Earnings Report
Estimated Revenue:$115M
+19.9% YoY
Estimated EPS:-$0.32
+81.5% YoY
Key Takeaways
Hippo Holdings delivered a strong second quarter in 2025, marked by a 31% year-over-year revenue increase to $117 million and a substantial improvement in its consolidated net loss ratio to 47%. The company achieved positive net income of $1 million, a significant turnaround from a net loss of $40 million in the prior year, driven by underwriting actions, better claims operations, and operational efficiencies.
Revenue increased by 31% year-over-year to $117 million, driven by higher gross earned premium and increased premium retention.
Consolidated Net Loss Ratio improved significantly by 46 percentage points year-over-year to 47%, attributed to underwriting and rate actions, improved claims operations, and favorable reserve releases.
The company achieved positive Net Income attributable to Hippo of $1 million, a substantial improvement compared to a Net Loss of $40 million in the same quarter last year.
Fixed expenses (Sales & Marketing, Technology & Development, General & Administrative) decreased by $6 million year-over-year, leading to a 16 percentage point reduction as a percentage of revenue.
Hippo Holdings
Hippo Holdings
Forward Guidance
The company's full-year guidance for 2025 is available in the shareholder letter on its investor relations website.
Positive Outlook
- Strategic partnership announced to accelerate growth and diversification.
- Strategic partnership includes a $100 million capital infusion, strengthening the balance sheet.
- Launched two new commercial and casualty programs on their hybrid fronting platform.
- New programs are expected to unlock important new sources of diversification and profitability.
- Continued focus on operational efficiencies and underwriting improvements.
Challenges Ahead
- No specific negative forward guidance points were provided in the report.
- The company operates in a highly regulated insurance industry, subject to scrutiny.
- Ability to achieve or maintain profitability in the future is subject to risks.
- Reliance on reinsurance availability and adequacy, including pricing, poses a risk.
- Exposure to severe weather events and other natural or man-made catastrophes, including climate change effects.
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Key Statistics
Market Cap
$846M
P/E Ratio
-6.81
Sector
Finance
Industry
Property Or Casualty Insurance
52-Week High
$36.9
52-Week Low
$16.4
Consolidated Net Loss Ratio
47%
HHIP Net Loss Ratio
55%
HHIP Non-PCS Loss Ratio
42%
HHIP PCS Loss Ratio
13%
Fixed Expenses Reduction
$6M