Insurtech Hippo posted net income for the third quarter 2026 of $9 million compared with about $98 million for the period a year ago.
The San Jose, California-based insurer said the drop in net income was due to a $91 million gain the company booked after the sale of its homebuilder distribution network to The Baldwin Group, which closed Q3 2025.
Gross written premium of $498 million for the third quarter increased 60% year over year to nearly $500 million. Hippo said all lines of business delivered growth, led by casualty and commercial multiperil lines which were up 146% and 63%, respectively, over Q3 2025.
“The overall growth strategy is focused on improving underwriting profitability and reducing volatility, including through greater portfolio diversification,” Hippo said in a statement.
“This growth did not come at the expense of underwriting discipline,” Hippo President and CEO Rick McCathron added during an earnings call with analysts.
Net premiums written of $149 million increased 26% from Q3 2025.
The combined ratio for Q3 was 98.4 versus 99.6 during the same period last year. McCathron said Hippo’s year-to-date combined ratio improved 20 points to 97.9 compared to last year.
The CEO of the managing general agency said the “MGA market remains one of the fastest-growing and most innovative sectors of insurance. This market now generates gross premium of over $125 billion in the U.S., growing at 15% annually since 2019.
“I am proud that Hippo is one of the leading program carriers supporting this growth and innovation.”
Hippo’s AI initiatives includes claims management platform CLARA Analytics, which is showing a success rate in 9 of 10 first notice of losses, McCathron said.
“This technology provides our claims operations the bandwidth to keep growing profitably. We continue to refine our underwriting and technology integrations and see a lot of runway ahead for our homeowners business,” he added.
Topics Commercial Lines Casualty
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