Insurtech Hippo Reverses Q3 Loss During ‘Breakout Quarter’

Insurtech Hippo posted third quarter 2025 net income of $98 million compared with a net loss of $9 million a year ago during the same period.

San Jose, California-based Hippo’s Q3 combined ratio improved to 100—a 28-point improvement from Q3 2024.

President and CEO Rick McCathron called Q3 a “breakout quarter,” recording a profit for the first time.

“We’re operating as a unified, technology-native platform that’s driving profitable growth, deepening diversification, and positioning us for long-term success,” he said in a statement.

Net income in Q3 was primarily driven by a $91 million net gain on the sale of its homebuilder distribution network to The Baldwin Group, closed in Q3. Hippo also sold its majority stake in First Connect in the fourth quarter 2024.

Net written premium grew 30% to about $118 million. Hippo, the carrier for over 30 MGA programs in the U.S., said the renters insurance line was the main driver, with growth of $18 million year over year. Renters now comprises 22.4% of Hippo’s net premiums, up from 9.6% at this time a year ago. Commercial multiperil also makes up more of Hippo’s book of business, growing in Q3 to account for 11.5% of premiums from 2.5% in Q3 2024.

Topics InsurTech Profit Loss Tech

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