Hippo Holdings Inc 10-Q for FY2026 Q3
Hippo Holdings Inc. (HIPO)
10-Q
2026-10-29
For: 2026-09-30
View Original
Added on
October 30, 2026
About this 10-Q
Hippo Holdings Inc filed this 10-Q on October 29, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).
Hippo reported nine-month net income attributable to Hippo of $26.0 million, a decrease of $25.7 million, while gross written premium increased 60% to $1,312.7 million, driven by Casualty and Commercial Multi-Peril growth. AI summary
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $156M
- up 29.4% from $120.6M a year earlier
- Net income
- $8.8M
- down 91.0% from net income of $98.1M a year earlier
- Diluted EPS
- $0.33
- down 91.2% from $3.77 a year earlier
16. Segments
Historically, the Company reported its financial results in the following three reportable segments: Services, Insurance-as-a-Service, and Hippo Home Insurance Program, which was reflective of how the Company’s Chief Operating Decision Maker (“CODM”) reviewed financial information for purposes of making operating decisions, assessing financial performance and allocating resources. Because of organizational changes and how the CODM views the business, beginning in the third quarter of 2025, the Company changed from three operating and reportable segments to one operating and reportable segment, the property and casualty insurance business. The property and casualty insurance business generates revenues primarily from net earned premiums, commission income, and net investment income.
The CODM is the Company’s Chief Executive Officer. The significant segment expenses provided to the CODM are consistent with the categories shown in the Company’s unaudited interim condensed consolidated statements of operations and comprehensive income (loss) and there are no other segment expenses at a more disaggregated level used by the CODM. The CODM reviews the Company’s net income (loss) as reported under GAAP, which is the primary measure of segment profit and loss. The CODM reviews this measure to monitor budget versus actual results and in competitive analysis by benchmarking to the Company’s competitors. The budgeted versus actual results analysis along with the competitive analysis are used to make resource allocation decisions. While the Company’s CODM also reviews the revenue streams attributable to individual lines of business, operations are managed, resources are allocated, and financial performance is evaluated on a consolidated basis. The measure of segment assets is reported on the balance sheet as total consolidated assets.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended September 30, 2026
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from ______ to ______.
Commission File Number: 001-39711
(Exact name of registrant as specified in its charter)
(State of incorporation) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
(650 ) 294-8463
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ☐ | ☒ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
The registrant had 26,621,710 shares of common stock outstanding as of October 23, 2026.
Table of Contents
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements included in this Quarterly Report on Form 10-Q that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements contained in this Quarterly Report other than statements of historical fact, including, without limitation, statements regarding the financial position, business strategy, and the plans and objectives of management for Hippo Holdings Inc. (together with its subsidiaries, “Hippo,” the “Company,” “we,” “us” and “our”) for future operations, statements regarding our strategic relationships, and statements regarding future expansion of our program are forward-looking statements. These statements are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts.
Forward-looking statements generally are accompanied by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “future,” “intend,” “may,” “might,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “seem,” “should,” “strive,” “will,” “would,” including the negative expressions of these words and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking.
Forward-looking statements in this Quarterly Report on Form 10-Q include, for example, statements about:
•our future results of operations and financial condition, including estimates and forecasts of financial and operating results and performance metrics, and our ability to attain and maintain profitability;
•our business strategy, including our cost reduction efforts, our diversified distribution strategy, the expected evolution of our business and premium mix across personal and commercial lines, and our plans to expand into new markets and new products;
•our ability to grow our business and, if such growth occurs, to effectively manage such growth, including the growth and development of our distribution channels;
•customer satisfaction and our ability to attract, retain, and expand our customer base;
•our ability to maintain and enhance our brand and reputation, including the quality of our products and services;
•our expectations about our book of business, including our ability to cross-sell and to attain greater value from each customer;
•the effects of seasonal and cyclical trends on our results of operations;
•our ability to compete effectively in the segments of the insurance industry in which we operate;
•our ability to underwrite risks accurately and charge competitive yet profitable rates to our customers, and the sufficiency of the analytical models we use to assess and predict exposure to catastrophe losses;
•our expectations regarding the effectiveness and adequacy of our reinsurance program, our ability to maintain reinsurance contracts and our near- and long-term strategies and expectations with respect to the availability, adequacy, coverage, limits, pricing, and cession of insurance risk;
•our ability to utilize, develop, and protect our proprietary technology, digital platform, and intellectual property;
•our development, deployment, and use of artificial intelligence and machine learning technologies, including the risk that competitors or other third parties may incorporate such technologies into their products more quickly or more successfully than we do;
•our ability to leverage our data, technology, and geographic diversity to help manage risk;
•our ability to expand our product offerings or improve existing ones;
•our ability to attract and retain personnel, including our officers and key employees;
•potential harm caused by outages or interruptions in, or delays to, services provided by our third-party providers, including our data vendors;
•potential harm caused by misappropriation of our data and compromises in cybersecurity, and our ability to receive, process, store, use, and share data in compliance with laws and regulations related to data privacy and data security;
•potential harm caused by changes in internet search engines’ methodologies;
•our denial of claims or our failure to accurately and timely pay claims;
•the effects of severe weather events and other natural or man-made catastrophes, including the effects of climate change, global pandemics, and terrorism;
•any overall decline in economic activity;
•regulators’ identification of errors in the policy forms we use, the rates we charge, and our customer communications, including cancellations, non-renewals, and reinstatements, through market conduct exams, complaints, or other inquiries;
•our ability to navigate extensive insurance industry regulations and the scrutiny of state insurance regulators, and the effects of existing or new legal or regulatory requirements on our business, including with respect to maintenance of risk-based capital and financial strength ratings, the insurance industry generally, and data privacy and cybersecurity, in the United States and internationally;
•our expected use of cash on our balance sheet, our future capital needs, and our ability to raise additional capital;
•fluctuations in our results of operations and operating metrics;
•our expectations regarding the realizability of our deferred tax assets, including the timing and amount of any release of the valuation allowance against our net deferred tax assets and the related impact on our results of operations; and
•our public securities’ liquidity and trading.
These statements are based on the current expectations of Hippo’s management and are not predictions of actual performance. You should not rely upon forward-looking statements as predictions of future events. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, and many actual events and circumstances are beyond the control of Hippo. Although we believe that we have a reasonable basis for each forward-looking statement contained in this Quarterly Report on Form 10-Q, we cannot guarantee that the future results, levels of activity, performance, events, and circumstances reflected in the forward-looking statements will be achieved or occur at all.
These forward-looking statements are subject to a number of risks, uncertainties, and other factors, including those described above and other risks set forth in the sections entitled “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, and in other documents that may be filed by the Company from time to time with the Securities and Exchange Commission (the “SEC”). Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Hippo does not presently know or that Hippo currently believes are immaterial that could also cause actual results, events, or circumstances to differ materially from those described in the forward-looking statements.
These forward-looking statements are based on information available as of the date of this Quarterly Report on Form 10-Q and reflect Hippo’s expectations, plans, forecasts, and views of future events as of that date. Accordingly, forward-looking statements should not be relied upon as representing Hippo’s views as of any subsequent date, and Hippo does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws. While Hippo may elect to update these forward-looking statements at some point in the future, Hippo specifically disclaims any obligation to do so. Accordingly, undue reliance should not be placed upon the forward-looking statements.
GENERAL
Unless the context otherwise requires, all references in this Quarterly Report to “we,” “us,” “our,” “Hippo” or the “Company” refer to Hippo Holdings Inc. and its consolidated subsidiaries. References to “Quarterly Report” herein refer to this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2026 and references to “Form 10-K” and “Annual Report” herein refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
All reports we file with the SEC are available for download free of charge via the Electronic Data Gathering Analysis and Retrieval (EDGAR) System on the SEC’s website at www.sec.gov. We also make electronic copies of our reports available for download, free of charge, through our investor relations website at investors.hippo.com as soon as reasonably practicable after filing such material with the SEC.
We may announce material business and financial information to our investors using our investor relations website at investors.hippo.com. We therefore encourage investors and others interested in Hippo to review the information that we make available on our website, in addition to following our filings with the SEC, webcasts, press releases and conference calls. Information contained on our website is not incorporated into, and does not form a part of this Quarterly Report.
HIPPO HOLDINGS INC.
Unaudited Interim Condensed Consolidated Balance Sheets
(in millions, except share and per share data)
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Investments: | |||||||||||
Fixed maturities available-for-sale, at fair value (amortized cost: $ | $ | $ | |||||||||
Short-term investments, at fair value (amortized cost: $ | |||||||||||
| Total investments | |||||||||||
| Cash and cash equivalents | |||||||||||
| Restricted cash | |||||||||||
Accounts receivable, net of allowance of $ | |||||||||||
| Reinsurance recoverable on paid and unpaid losses and LAE | |||||||||||
| Prepaid reinsurance premiums | |||||||||||
| Ceding commissions receivable | |||||||||||
| Capitalized internal use software | |||||||||||
| Intangible assets | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| Liabilities and stockholders’ equity | |||||||||||
| Liabilities: | |||||||||||
| Loss and loss adjustment expense reserve | $ | $ | |||||||||
| Unearned premiums | |||||||||||
| Reinsurance premiums payable | |||||||||||
| Provision for commission | |||||||||||
Surplus note | |||||||||||
| Accrued expenses and other liabilities | |||||||||||
| Total liabilities | |||||||||||
Commitments and contingencies (Note 12) | |||||||||||
| Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Accumulated other comprehensive (loss) income | ( | ||||||||||
| Accumulated deficit | ( | ( | |||||||||
| Total stockholders’ equity | |||||||||||
| Total liabilities and stockholders’ equity | $ | $ | |||||||||
See Notes to Unaudited Interim Condensed Consolidated Financial Statements
1
HIPPO HOLDINGS INC.
Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(in millions, except share and per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Net earned premium | $ | $ | $ | $ | |||||||||||||||||||
| Commission income, net | |||||||||||||||||||||||
| Service and fee income | |||||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||
| Total revenue | |||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Losses and loss adjustment expenses | |||||||||||||||||||||||
| Insurance related expenses | |||||||||||||||||||||||
| Technology and development expenses | |||||||||||||||||||||||
| Sales and marketing expenses | |||||||||||||||||||||||
| General and administrative expenses | |||||||||||||||||||||||
| Impairment and restructuring charges | |||||||||||||||||||||||
| Gain on sale of business | ( | ( | |||||||||||||||||||||
| Interest and other expense, net | |||||||||||||||||||||||
| Total expenses | |||||||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||
| Income tax expense (benefit) | ( | ||||||||||||||||||||||
| Net income | |||||||||||||||||||||||
| Net income attributable to noncontrolling interests, net of tax | |||||||||||||||||||||||
| Net income attributable to Hippo | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive (loss) income: | |||||||||||||||||||||||
| Change in net unrealized (loss) gain on investments, net of tax | ( | ( | |||||||||||||||||||||
| Comprehensive (loss) income attributable to Hippo | $ | ( | $ | $ | $ | ||||||||||||||||||
| Per share data: | |||||||||||||||||||||||
| Net income per share attributable to Hippo | |||||||||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
See Notes to Unaudited Interim Condensed Consolidated Financial Statements
2
HIPPO HOLDINGS INC.
Unaudited Interim Condensed Consolidated Statements of Stockholders’ Equity
(in millions, except share data)
| Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Hippo Stockholders' Equity | Noncontrolling Interests | Total Stockholders’ Equity | ||||||||||||||||||||
| Shares | Amount | |||||||||||||||||||||||||
| Balance at January 1, 2026 | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||
| Net income | — | — | — | — | — | |||||||||||||||||||||
| Other comprehensive loss | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||
| Issuance of common stock from stock plans and contingently issuable shares | — | — | — | — | ||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||
| Balance at March 31, 2026 | $ | ( | ( | |||||||||||||||||||||||
| Net income | — | — | — | — | — | |||||||||||||||||||||
| Other comprehensive loss | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||
| Issuance of common stock from stock plans and contingently issuable shares | — | — | — | — | ||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||
| Balance at June 30, 2026 | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||
| Net income | — | — | — | — | — | |||||||||||||||||||||
| Other comprehensive loss | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||
| Issuance of common stock from stock plans and contingently issuable shares | — | — | — | — | ||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||
See Notes to Unaudited Interim Condensed Consolidated Financial Statements
3
HIPPO HOLDINGS INC.
Unaudited Interim Condensed Consolidated Statements of Stockholders’ Equity
(in millions, except share data)
| Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Hippo Stockholders’ Equity | Non controlling Interests | Total Stockholders’ Equity | ||||||||||||||||||||
| Shares | Amount | |||||||||||||||||||||||||
| Balance at January 1, 2025 | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||
| Net loss | — | — | — | — | ( | ( | ( | |||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | |||||||||||||||||||||
| Issuance of common stock from stock plans and contingently issuable shares | — | — | — | — | ||||||||||||||||||||||
| Shares withheld related to net share settlement | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | ( | ||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | |||||||||||||||||||||
| Issuance of common stock from stock plans and contingently issuable shares | — | — | — | — | ||||||||||||||||||||||
| Shares withheld related to net share settlement | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||
| Distributions to noncontrolling interests | — | — | — | — | — | — | ( | ( | ||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | |||||||||||||||||||||
| Issuance of common stock from stock plans and contingently issuable shares | — | — | — | — | ||||||||||||||||||||||
| Repurchase of common stock | ( | — | ( | — | — | ( | — | ( | ||||||||||||||||||
| Shares withheld related to net share settlement | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||
| Eliminations of noncontrolling interests | — | — | — | — | — | — | ( | ( | ||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||
See Notes to Unaudited Interim Condensed Consolidated Financial Statements
4
HIPPO HOLDINGS INC.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
(in millions)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net cash provided by operating activities | $ | $ | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capitalized internal use software costs | ( | ( | |||||||||
| Purchases of property and equipment | ( | ( | |||||||||
Purchases of fixed maturities | ( | ( | |||||||||
Maturities of fixed maturities | |||||||||||
Sales of fixed maturities | |||||||||||
Purchases of short-term investments | ( | ( | |||||||||
Maturities of short-term investments | |||||||||||
Sales of short-term investments | |||||||||||
| Proceeds from deferred consideration | |||||||||||
| Proceeds from sale of business, net of cash disposed | |||||||||||
| Net cash (used in) provided by investing activities | $ | ( | $ | ||||||||
| Cash flows from financing activities: | |||||||||||
Proceeds from surplus note | |||||||||||
| Taxes paid related to net share settlement of equity awards | ( | ||||||||||
Proceeds from issuance of common stock | |||||||||||
| Share repurchases under program | ( | ||||||||||
Distributions to noncontrolling interests | ( | ||||||||||
Other | ( | ||||||||||
| Net cash provided by financing activities | $ | $ | |||||||||
| Net increase in cash, cash equivalents, and restricted cash | |||||||||||
| Cash, cash equivalents, and restricted cash at the beginning of the period | |||||||||||
| Cash, cash equivalents, and restricted cash at the end of the period | $ | $ | |||||||||
See Notes to Unaudited Interim Condensed Consolidated Financial Statements
5
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
1. Description of Business and Summary of Significant Accounting Policies
Description of Business
Hippo Holdings Inc., referred to herein as “Hippo” or the “Company,” is an insurance holding company incorporated in Delaware. Hippo has subsidiaries that provide property and casualty insurance products to both individuals and business customers. The Company’s headquarters are located in San Jose, California. Hippo conducts insurance underwriting through its regulated carrier subsidiaries. Its operations include providing insurance capacity and related services for its owned managing general agent (“MGA”), as well as in partnership with third-party MGAs and services that support the placement and servicing of insurance policies.
Basis of Presentation and Consolidation
The unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and include the Company’s consolidated subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been omitted accordingly.
The unaudited interim financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Interim results are not necessarily indicative of the results that may be expected for the full year. Certain percentages herein may not sum or recalculate due to rounding.
Segment Reporting
The Company has a single operating segment, the property and casualty insurance business. The property and casualty insurance business generates revenues primarily from net earned premiums, commission income, and net investment income.
The Chief Operating Decision Maker (“CODM”) is the Company’s Chief Executive Officer. The significant segment expenses provided to the CODM are consistent with the categories shown in the Company’s unaudited interim condensed consolidated statements of operations and comprehensive income (loss) and there are no other segment expenses at a more disaggregated level used by the CODM. The CODM reviews the Company’s net income as reported in the Company’s unaudited interim condensed consolidated statements of operations and comprehensive income (loss), which is the primary measure of segment profit and loss. The CODM reviews this measure to monitor budget versus actual results and in competitive analysis by benchmarking to the Company’s competitors. The budgeted versus actual results analysis along with the competitive analysis are used to make resource allocation decisions. While the Company’s CODM also reviews the revenue streams attributable to individual lines of business, operations are managed, resources are allocated, and financial performance is evaluated on a consolidated basis. The measure of segment assets is reported in the Company’s unaudited interim condensed consolidated balance sheet as total consolidated assets.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ significantly from those estimates.
6
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
Cash, Cash Equivalents, and Restricted Cash
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements
Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs.
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This guidance provides a practical expedient that entities may elect when estimating expected credit losses for current accounts receivable and current contract assets arising from ASC 606 transactions, allowing entities to assume that conditions as of the balance sheet date remain unchanged over the life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15, 2025, with early adoption permitted. The Company adopted ASU 2025-05 effective January 1, 2026 and elected the practical expedient. The adoption did not have a material impact on the unaudited interim condensed consolidated financial statements.
ASUs issued but not yet adopted
In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses, which requires additional disclosure of the nature of expenses included in the income statement in response to longstanding requests from investors for more information about an entity’s expenses. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. The effective date of ASU No. 2024-03, as clarified by ASU No. 2025-01, is described below.
In January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures: Clarifying the Effective Date, clarifying the interim reporting date when an entity must adopt ASU No. 2024-03. According to ASU No. 2025-01, ASU No. 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently assessing the impact of ASU No. 2024-03 and ASU No. 2025-01 on the Company’s consolidated financial statements and notes to the consolidated financial statements.
7
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
In September 2025, the FASB issued ASU No. 2025-06, Targeted Improvements to the Accounting for Internal-Use Software, which amends guidance related to the accounting for internal-use software development costs. The amendments are intended to modernize the recognition and capitalization framework to reflect current software development practices, including iterative and agile methodologies, by removing references to “development stages.” It also clarifies the criteria for capitalization, which begins when both of the following occur: (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. This ASU is effective for annual periods beginning after December 15, 2027, and interim periods within those annual periods. Early adoption is permitted. The Company is currently assessing the impact of the ASU on the Company’s unaudited interim condensed consolidated financial statements and notes to the consolidated financial statements.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU is intended to improve the navigability of guidance in ASC 270, Interim Reporting, and clarify when it applies. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. This ASU is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, and permits prospective or full retrospective adoption. The Company is currently assessing the impact of the ASU on the Company’s unaudited interim condensed consolidated financial statements and notes to the consolidated financial statements.
In December 2025, the FASB issued ASU No. 2025-12, Codification Improvements, which addresses thirty-three items, representing the changes to the Codification that (1) clarify, (2) correct errors, or (3) make minor improvements. Generally, the amendments in this Update are not intended to result in significant changes for most entities. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within those annual periods. The adoption method of this ASU may vary, on an issue-by-issue basis. Early adoption is permitted. The Company is currently assessing the impact of the ASU on the Company’s unaudited interim condensed consolidated financial statements and notes to the consolidated financial statements, but does not expect this standard to have a material impact on its financial statements.
8
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
2. Investments
The amortized cost and fair value of fixed maturities securities and short-term investments are as follows:
| September 30, 2026 | |||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Fixed maturities available-for-sale: | |||||||||||||||||||||||
| U.S. government and agencies | $ | $ | $ | ( | $ | ||||||||||||||||||
| States and other territories | ( | ||||||||||||||||||||||
| Corporate securities | ( | ||||||||||||||||||||||
| Residential mortgage-backed securities | ( | ||||||||||||||||||||||
| Commercial mortgage-backed securities | ( | ||||||||||||||||||||||
| Asset backed securities | |||||||||||||||||||||||
| Total fixed maturities available-for-sale | ( | ||||||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
| U.S. government and agencies | |||||||||||||||||||||||
| Corporate securities | |||||||||||||||||||||||
| Total short-term investments | |||||||||||||||||||||||
| Total | $ | $ | $ | ( | $ | ||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Fixed maturities available-for-sale: | |||||||||||||||||||||||
| U.S. government and agencies | $ | $ | $ | ( | $ | ||||||||||||||||||
| States and other territories | ( | ||||||||||||||||||||||
| Corporate securities | ( | ||||||||||||||||||||||
| Residential mortgage-backed securities | ( | ||||||||||||||||||||||
| Commercial mortgage-backed securities | ( | ||||||||||||||||||||||
| Asset backed securities | |||||||||||||||||||||||
| Total fixed maturities available-for-sale | ( | ||||||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
| U.S. government and agencies | |||||||||||||||||||||||
| Corporate securities | |||||||||||||||||||||||
| Total short-term investments | |||||||||||||||||||||||
| Total | $ | $ | $ | ( | $ | ||||||||||||||||||
The following tables present the gross unrealized losses and related fair values for the Company’s investments in available-for-sale debt securities and short-term investments, grouped by duration of time in a continuous unrealized loss position as of September 30, 2026, and December 31, 2025:
9
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
| September 30, 2026 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Fixed maturities available-for-sale: | |||||||||||||||||||||||||||||||||||
| U.S. government and agencies | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
| States and other territories | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Corporate securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
| Total | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Fixed maturities available-for-sale: | |||||||||||||||||||||||||||||||||||
| U.S. government and agencies | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
| States and other territories | ( | ( | |||||||||||||||||||||||||||||||||
| Corporate securities | ( | ( | |||||||||||||||||||||||||||||||||
| Residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
| Asset backed securities | |||||||||||||||||||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||||||||||||||
Corporate securities | |||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
The Company has determined that unrealized losses as of September 30, 2026 and December 31, 2025 resulted from the interest rate environment, rather than a deterioration of the creditworthiness of the issuers. Therefore, an allowance for credit losses was not necessary as it is more likely than not that the Company will not be required to sell the investments before the recovery of the amortized cost basis or until maturity. As of September 30, 2026, none of the Company’s fixed maturity portfolio was unrated or rated below investment grade.
10
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
The amortized cost and fair value of fixed maturities securities by contractual maturity are as follows:
| September 30, 2026 | |||||||||||
| Amortized Cost | Fair Value | ||||||||||
| (in millions) | |||||||||||
| Due to mature: | |||||||||||
| One year or less | $ | $ | |||||||||
| After one year through five years | |||||||||||
| After five years through ten years | |||||||||||
| After ten years | |||||||||||
| Residential mortgage-backed securities | |||||||||||
| Commercial mortgage-backed securities | |||||||||||
| Asset backed securities | |||||||||||
| Total fixed maturities available-for-sale | $ | $ | |||||||||
Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
Net realized gains and losses on fixed maturity securities were insignificant for the three and nine months ended September 30, 2026 and 2025.
The Company’s net investment income is comprised of the following:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
Investment income | $ | $ | $ | $ | |||||||||||||||||||
| Investment expenses | ( | ( | ( | ( | |||||||||||||||||||
| Net investment income | $ | $ | $ | $ | |||||||||||||||||||
Pursuant to certain regulatory requirements, the Company is required to hold assets on deposit with various state insurance departments for the benefit of policyholders. These special deposits are included in cash and cash equivalents, fixed maturities, or short-term investments on the unaudited interim condensed consolidated balance sheets. The carrying value of securities on deposit with state regulatory authorities total $9.9 million and $13.3 million as of September 30, 2026 and December 31, 2025, respectively.
3. Fair Value Measurement
When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions, and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
•Level 1 — Quoted prices in active markets for identical assets or liabilities that are publicly accessible at the measurement date.
•Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
11
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
•Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis:
| September 30, 2026 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||
| Cash, cash equivalents, and restricted cash | $ | $ | $ | $ | |||||||||||||||||||
| Fixed maturities available-for-sale: | |||||||||||||||||||||||
| U.S. government and agencies | |||||||||||||||||||||||
| States and other territories | |||||||||||||||||||||||
| Corporate securities | |||||||||||||||||||||||
| Residential mortgage-backed securities | |||||||||||||||||||||||
| Commercial mortgage-backed securities | |||||||||||||||||||||||
| Asset backed securities | |||||||||||||||||||||||
| Total fixed maturities available-for-sale | |||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||
| U.S. government and agencies | |||||||||||||||||||||||
| Corporate securities | |||||||||||||||||||||||
| Total short-term investments | |||||||||||||||||||||||
| Total financial assets | $ | $ | $ | $ | |||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||
| Cash, cash equivalents, and restricted cash | $ | $ | $ | $ | |||||||||||||||||||
| Fixed maturities available-for-sale: | |||||||||||||||||||||||
| U.S. government and agencies | |||||||||||||||||||||||
| States and other territories | |||||||||||||||||||||||
| Corporate securities | |||||||||||||||||||||||
| Residential mortgage-backed securities | |||||||||||||||||||||||
| Commercial mortgage-backed securities | |||||||||||||||||||||||
| Asset backed securities | |||||||||||||||||||||||
| Total fixed maturities available-for-sale | |||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||
| U.S. government and agencies | |||||||||||||||||||||||
| Corporate securities | |||||||||||||||||||||||
| Total short-term investments | |||||||||||||||||||||||
| Total financial assets | $ | $ | $ | $ | |||||||||||||||||||
The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels at the end of each reporting period. There were no transfers between levels in the fair value hierarchy during the nine months ended September 30, 2026.
12
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
Non-Recurring Fair Value Measurements
The Company has an approximately 19 % ownership stake in First Connect Insurance Services (“First Connect”), a non-public company. The Company estimates the fair value on a non-recurring basis using the fair value of First Connect’s common stock, as applicable. Because of the nature of the unobservable inputs, the Company classifies this retained interest as Level 3 in the fair value hierarchy. The fair value of the Company’s investment was $4.5
4. Intangible Assets
| September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||
| Weighted-Average Useful Life Remaining (in years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Agency and carrier relationships | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||
| State licenses and domain name | Indefinite | — | — | |||||||||||||||||||||||
| Customer relationships | ( | ( | ||||||||||||||||||||||||
| Other | — | ( | ||||||||||||||||||||||||
| Total intangible assets, net | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||
Amortization expense related to intangible assets for the three months ended September 30, 2026 and 2025 was $0.3 million and $0.2 million, respectively, and for the nine months ended September 30, 2026 and 2025 was $0.7 million and $1.5 million, respectively. The amortization expense is primarily included in sales and marketing expenses and general and administrative expenses on the unaudited interim condensed consolidated statements of operations and comprehensive income (loss).
5. Capitalized Internal Use Software
Amortization expense related to capitalized internal use software for the three months ended September 30, 2026 and 2025 was $4.3 million and $4.2 million, and for the nine months ended September 30, 2026 and 2025 was $13.0 million and $12.9 million, respectively. The amortization expense is included in insurance related expenses on the unaudited interim condensed consolidated statements of operations and comprehensive income (loss).
13
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
6. Other Assets
September 30, 2026 | December 31, 2025 | ||||||||||
| (in millions) | |||||||||||
| Property and equipment | $ | $ | |||||||||
Deferred policy acquisition costs | |||||||||||
| Deferred consideration | |||||||||||
| Prepaid expenses | |||||||||||
| Claims receivable | |||||||||||
| Lease right-of-use assets | |||||||||||
| Other | |||||||||||
| Total other assets | $ | $ | |||||||||
Policy acquisition costs deferred, net for the three months ended September 30, 2026 and 2025 were $26.9 million and $19.0 million, respectively, and for the nine months ended September 30, 2026 and 2025 were $62.6 million and $56.6 million, respectively. The Company amortized deferred policy acquisition costs of $18.8 million and $12.3 million for the three months ended September 30, 2026 and 2025, respectively, and for the nine months ended September 30, 2026 and 2025 amortized $46.8 million and $39.2 million, respectively.
7. Accrued Expenses and Other Liabilities
September 30, 2026 | December 31, 2025 | ||||||||||
| (in millions) | |||||||||||
| Claim payments outstanding | $ | $ | |||||||||
| Advances from customers | |||||||||||
| Premium refund liability | |||||||||||
| Employee related accruals | |||||||||||
| Lease liability | |||||||||||
| Fiduciary liability | |||||||||||
| Other | |||||||||||
| Total accrued expenses and other liabilities | $ | $ | |||||||||
8. Surplus Note
The Company issued a surplus note on June 2, 2025 in the amount of $50.0 million with a fixed interest rate of 9.5 % for a term of 15 years. The surplus note is callable by the Company in 7 years from the issuance date. Interest on the outstanding principal is payable on September 1 and March 1 every year. Payment of principal and interest requires regulatory approval before such payment may be made. The Company paid $4.8 million in interest for the nine months ended September 30, 2026.
September 30, 2026 | December 31, 2025 | ||||||||||
| (in millions) | |||||||||||
| Surplus note | $ | $ | |||||||||
| Less: unamortized debt issuance costs | ( | ( | |||||||||
Total surplus note, net | $ | $ | |||||||||
The Company’s surplus note is recorded at its carrying value net of unamortized debt issuance costs. The estimated fair value of the surplus note as of September 30, 2026 was $46.9 million, and is classified as Level 3 within the fair value hierarchy. The surplus note’s fair value is estimated using a discounted cash flow technique with a rate constructed of a duration-matched risk-free anchor plus credit and illiquidity spread.
14
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
9. Losses and Loss Adjustment Expense Reserves
The reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance is summarized as follows:
| For the nine months ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in millions) | |||||||||||
| Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of beginning of the period | $ | $ | |||||||||
| Less: Reinsurance recoverables on unpaid losses and LAE | ( | ( | |||||||||
| Reserve for losses and LAE, net of reinsurance recoverables as of beginning of the period | |||||||||||
| Add: Incurred losses and LAE, net of reinsurance, related to: | |||||||||||
| Current year | |||||||||||
| Prior years | ( | ( | |||||||||
| Total incurred | |||||||||||
| Deduct: Loss and LAE payments, net of reinsurance, related to: | |||||||||||
| Current year | |||||||||||
| Prior years | |||||||||||
| Total paid | |||||||||||
| Reserve for losses and LAE, net of reinsurance recoverables at end of period | |||||||||||
| Add: Reinsurance recoverables on unpaid losses and LAE at end of period | |||||||||||
| Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of end of the period | $ | $ | |||||||||
The gross losses and LAE reserve is included in losses and loss adjustment expenses and the reinsurance recoverables are included in reinsurance recoverable on paid and unpaid losses and LAE on the unaudited interim condensed consolidated balance sheets.
Prior year loss development occurs when actual losses incurred vary from the Company’s previously estimated losses, which are established through the Company’s losses and LAE reserve estimate processes.
Net incurred losses and LAE experienced favorable prior years development of $4.6 million and $10.6 million for the nine months ended September 30, 2026 and 2025, respectively. The prior period development for the nine months ended September 30, 2026 of $4.6 million includes a $2.6 million gain from a reinsurance commutation, as well as $2.0 million of favorable net loss development from catastrophe reserves relating to the Company’s property lines, primarily from accident years 2023 and 2024. These changes are primarily a result of ongoing analysis of claims emergence patterns and loss trends.
The prior period development for the nine months ended September 30, 2025 of $10.6 million was driven primarily by favorable net loss development relating to the 2024 and prior accident years, resulting in a net release of $8.2 million from attritional reserves and $2.4 million from catastrophe reserves. These changes are primarily a result of ongoing analysis of claims emergence patterns and loss trends.
15
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
10. Reinsurance
The Company maintains a comprehensive reinsurance program to manage risk exposure, reduce earnings volatility, and safeguard capital. By ceding a portion of its underwriting risk to highly rated reinsurers and alternative capital providers, the Company limits the financial impact of catastrophe events and large loss activity. Nevertheless, the Company remains ultimately responsible for policyholder claims should a reinsurer fail to perform.
The Company’s reinsurance strategy includes a mix of quota share and excess of loss (“XOL”) structures, alongside collateralized protection through catastrophe bonds. The Company works with reinsurers rated “A-” (Excellent) or better by A.M. Best or require appropriate collateral. Contracts often include provisions allowing for replacement of reinsurers whose financial condition deteriorates.
The Company’s catastrophe reinsurance program supports property risks underwritten by the Company on behalf of the Company’s MGA and third-party MGAs. These risks are protected mainly by a corporate level group catastrophe XOL (the “Group Cat”) and in some cases by program-specific XOL treaties, catastrophe bonds, and quota share reinsurance. The Company is also protected by participation in the Florida Hurricane Catastrophe Fund (“FHCF”). This catastrophe reinsurance structure is designed to provide protection against severe loss events across the portfolio. Effective June 1, 2026, the catastrophe reinsurance program has an occurrence limit of $512.9 million and an aggregate limit of $776.9 million.
Hippo’s 2026 program, established in the second quarter of 2026, reflects a shift in the way the Company purchases catastrophe reinsurance. The Company consolidated multiple program level XOL contracts into a single Group Cat structure. The new structure also incorporates the previous corporate catastrophe cover. The Group Cat covers all catastrophe exposed business written by the Company and attaches after inuring any program specific reinsurance, the FHCF, and the catastrophe bonds.
The change to portfolio level management of the Company’s reinsurance program allowed the Company to place a whole account quota share that provides coverage for both property and casualty programs.
The whole account quota share was a strategic reinsurance program placed June 1, 2026. The contract covers all lines of business, including both property as well as casualty, for which the Company has a retention at least equal to the reinsurance participation. This aligns the Company’s interests with that of the reinsurer. While the whole account quota share provides some property catastrophe relief below the attachment of the Group Cat, it was mainly placed to increase future growth optionality and manage the business on a portfolio basis.
For business written by the Company’s MGA, the Company strategically retains a significant level of risk, reflecting the Company’s confidence in the portfolio’s underwriting performance. The business written by the Company’s MGA is primarily covered by catastrophe XOL protection.
The Company also utilizes collateralized reinsurance through Mountain Re Ltd., a Bermuda-based special purpose insurer. The catastrophe bonds issued through Mountain Re Ltd. provide multi-year per occurrence coverage for a range of perils, including hurricane and wildfire, for business written through the Company’s MGA.
16
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
The following tables reflect amounts affecting the unaudited interim condensed consolidated statements of operations and comprehensive income (loss) for reinsurance as of and for the three and nine months ended September 30, 2026, and 2025.
| For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| Written premiums | Earned premiums | Loss and LAE incurred | Written premiums | Earned premiums | Loss and LAE incurred | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Direct | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Assumed | |||||||||||||||||||||||||||||||||||
| Gross | |||||||||||||||||||||||||||||||||||
| Ceded | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Net | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| Written premiums | Earned premiums | Loss and LAE incurred | Written premiums | Earned premiums | Loss and LAE incurred | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Direct | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Assumed | |||||||||||||||||||||||||||||||||||
| Gross | |||||||||||||||||||||||||||||||||||
| Ceded | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Net | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
As of September 30, 2026 and December 31, 2025, a provision for sliding scale commissions of $50.3 million and $36.0 million, respectively, is included in provision for commission on the unaudited interim condensed consolidated balance sheets.
As of September 30, 2026 and December 31, 2025, a receivable for sliding scale commissions of $70.0 million and $37.6 million, respectively, is included in ceding commissions receivable on the unaudited interim condensed consolidated balance sheets.
As of September 30, 2026 and December 31, 2025, a provision for loss participation features of $16.1 million and $17.4 million, respectively, was recorded as a contra-asset in reinsurance recoverable on the unaudited interim condensed consolidated balance sheets.
17
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
11. Geographical Breakdown of Gross Written Premium
Gross written premium by state is as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Amount | % of GWP | Amount | % of GWP | Amount | % of GWP | Amount | % of GWP | ||||||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
| State | |||||||||||||||||||||||||||||||||||||||||||||||
| California | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
| New York | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
| Texas | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
| Florida | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
| Illinois | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
| Georgia | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
| New Jersey | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
| Colorado | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
| Massachusetts | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
| Pennsylvania | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
| Other | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
| Total | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
12. Commitments and Contingencies
Purchase Commitments
As of September 30, 2026, the Company has total minimum purchase commitments, which must be made during the next three years , of $3.2 million.
Legal Proceedings
From time to time, the Company may become involved in litigation or other legal proceedings in the ordinary course of business, including claims from policyholders. The Company does not believe it is a party to any pending litigation or proceedings that are likely to have a material adverse effect on its business, financial condition, or results of operations.
18
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
13. Stockholders’ Equity
Common Stock
The Company’s common stock trades on the New York Stock Exchange (“NYSE”) under the ticker symbol “HIPO”. Pursuant to its Certificate of Incorporation, the Company is authorized to issue 80 million shares of common stock, with a par value of $0.0001 per share. Each share of common stock is entitled to one vote. The holders of the common stock are also entitled to receive dividends whenever funds are legally available and when declared by the board of directors. No dividends have been declared or paid since inception.
Stock-Based Compensation Plans
The Company maintains equity compensation plans adopted in 2019 and 2021 (the “plans”). The material terms of the plans were previously disclosed in the Company’s Annual Report on Form 10-K. There have been no material changes to the plans during the current fiscal year.
Stock Options
The following table summarizes option activity under the plans:
| Options Outstanding | Weighted-Average Remaining Contract Term (in Years) | Aggregate Intrinsic Value (in Millions) | |||||||||||||||||||||
| Number of Shares | Weighted Average Exercise Price | ||||||||||||||||||||||
Outstanding as of December 31, 2025 | $ | $ | |||||||||||||||||||||
| Granted | — | ||||||||||||||||||||||
| Exercised | ( | ||||||||||||||||||||||
| Canceled/Expired | ( | — | |||||||||||||||||||||
| Outstanding as of September 30, 2026 | $ | ||||||||||||||||||||||
| Vested and exercisable as of September 30, 2026 | $ | $ | |||||||||||||||||||||
The aggregate intrinsic value of options exercised during the nine months ended September 30, 2026 and 2025 was $1.2 million and $4.6 million, respectively, and is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of the exercise date. There is no unrecognized compensation cost as of September 30, 2026 related to stock options.
Restricted Stock Units and Performance Stock Units
The Company grants service-based RSUs and performance-based RSUs (“PSUs”) as part of the Company’s equity compensation plans. The Company measures RSU and PSU expense for awards granted based on the estimated fair value of those awards at the grant date. To estimate the fair value of PSUs containing a market condition, the Company used the Monte Carlo valuation model. The fair value of all other awards is based on the closing price of the Company’s common stock as reported on the NYSE on the date of grant. The RSUs generally vest over a period of to four years . The PSUs vest based on the level of achievement of the performance goals and continued employment with the Company over a - to four-year performance period.
During the nine months ended September 30, 2026, the Company granted PSUs to certain executives of the Company where vesting is based on the Company’s internal financial measures over a three-year period. Between 0 % and 100 % of the granted amount may vest based on the level of achievement of the performance goals and continued employment with the Company. Total compensation expense at the grant date assuming 100 % achievement is $3.2 million.
19
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
During the nine months ended September 30, 2026, the Company also granted PSUs to certain executives of the Company where vesting is based on the Company’s total shareholder return (“TSR”) relative to a peer group over a three-year period. Between 0 % and 100 % of the target shares may vest based on performance. The awards are classified as equity and were valued on the grant date using the Monte Carlo simulation. Expense is recognized over the service period regardless of TSR outcome, provided continued employment. The weighted-average grant-date fair values ranged between $20.21 and $26.66 per unit, depending on the grant date. Total compensation expense at the grant date is $2.5 million.
During the nine months ended September 30, 2025, the Company granted PSUs to its CEO. Vesting is based on the Company’s TSR relative to a peer group over a three-year period. Between 0 % and 100 % of the target shares may vest based on performance. The awards are classified as equity and were valued on the grant date using the Monte Carlo simulation. Expense is recognized over the service period regardless of TSR outcome, provided continued employment. The weighted-average grant-date fair value was $24.08 per unit. Total compensation expense at the grant date is $1.0 million.
Stock-based compensation expense for RSUs is recognized based on a straight-line basis over the employee requisite service period. Stock-based compensation expense for PSUs is recognized on a graded accelerated basis over the employee requisite service period. The Company accounts for forfeitures as they occur.
The following table summarizes the RSU and PSU activity for the nine months ended September 30, 2026:
| Number of Shares | Weighted Average Grant-Date Fair Value per Share | ||||||||||
Unvested and outstanding as of December 31, 2025 | $ | ||||||||||
| Granted | |||||||||||
| Released | ( | ||||||||||
| Canceled and forfeited | ( | ||||||||||
Unvested and outstanding as of September 30, 2026 | $ | ||||||||||
Total unrecognized compensation cost related to unvested RSUs and PSUs is $34.2 million as of September 30, 2026, and it is expected to be recognized over a weighted-average period of 2 years.
2021 Employee Stock Purchase Plan
The Company adopted the 2021 Employee Stock Purchase Plan (the “2021 ESPP”), which is designed to allow eligible employees of the Company to purchase shares of the Company’s common stock with their accumulated payroll deductions at a price equal to 85 % of the lesser of the fair market value on the first business day of the offering period or on the designated purchase date of the offering period, up to a maximum purchase amount of $25,000 during the calendar year. The 2021 ESPP offers a six-month look-back feature as well as an automatic reset feature that provides for an offering period to be reset to a new lower-priced offering if the offering price of the new offering period is less than that of the current offering period. During the nine months ended September 30, 2026 and 2025, 45,861 and 88,878 shares were issued under the 2021 ESPP, respectively. In addition, the number of shares available for issuance under the 2021 ESPP is increased annually on January 1 of each calendar year ending in 2031, by an amount equal to the lesser of (i) one percent of the shares outstanding (on a converted basis) on the last day of the immediately preceding fiscal year and (ii) such number of shares as may be determined by the board of directors.
20
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
Stock-Based Compensation
Total stock-based compensation expense, classified in the accompanying unaudited interim condensed consolidated statements of operations and comprehensive income (loss) was as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Losses and loss adjustment expenses | $ | $ | $ | $ | |||||||||||||||||||
| Insurance related expenses | |||||||||||||||||||||||
| Technology and development expenses | |||||||||||||||||||||||
| Sales and marketing expenses | |||||||||||||||||||||||
| General and administrative expenses | |||||||||||||||||||||||
| Total stock-based compensation expense | $ | $ | $ | $ | |||||||||||||||||||
Share Repurchases
As of September 30, 2026, $18.1 million of common stock remains available for repurchase. Shares repurchased by the Company are accounted for when the transaction is settled. During the nine months ended September 30, 2026, there were no share repurchases.
Warrants
14. Income Taxes
The consolidated effective tax rate was 0.7% and 0.04 % for the three months ended September 30, 2026 and 2025, respectively. The consolidated effective tax rate was 3.9 % and (0.2 )% for the nine months ended September 30, 2026 and 2025, respectively. The difference between the rate for the three and nine months ended September 30, 2026 and 2025 and the U.S. federal income tax rate of 21% was due primarily to a full valuation allowance against the Company’s net deferred tax assets, partially offset by state income taxes.
As of September 30, 2026 and December 31, 2025, the Company has $5.6 million and $5.2 million of unrecognized tax benefits, respectively, fully offset by a valuation allowance. No
21
HIPPO HOLDINGS INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
15. Net Income Per Share Attributable to Common Stockholders
Net income per share attributable to common stockholders was computed as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
Net income attributable to Hippo – basic and diluted (in millions) | $ | $ | $ | $ | |||||||||||||||||||
| Denominator: | |||||||||||||||||||||||
| Weighted-average shares used in computing net income per share attributable to Hippo | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
| Net income per share attributable to Hippo | |||||||||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||||||||
The potential shares of common stock that were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Outstanding options | |||||||||||||||||||||||
| Common stock from outstanding warrants | |||||||||||||||||||||||
| RSU and PSUs | |||||||||||||||||||||||
| Employee stock purchase plan | |||||||||||||||||||||||
| Total | |||||||||||||||||||||||
22
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of our operations addresses the consolidated financial condition as of September 30, 2026, compared with December 31, 2025, and consolidated results of operations for the three and nine months ended September 30, 2026 and 2025. This should be read in conjunction with our unaudited interim condensed consolidated financial statements and notes thereto included in Item 1 of this report and also our Management’s Discussion and Analysis of Financial Condition and Results of Operations, the “Risk Factors” section, and the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled “Risk Factors” in our Annual Report and may be updated from time to time in our other filings with the SEC. Certain percentages herein may not sum or recalculate due to rounding.
Overview
Hippo is an insurance holding company with subsidiaries that provide property and casualty insurance products to both individuals and business customers primarily in the United States. We conduct insurance underwriting through our regulated carrier subsidiaries and generate revenue from a combination of insurance underwriting activities and fee- and commission-based services. Our operations include providing insurance capacity and related services for our owned managing general agent (“MGA”) and in partnership with third-party MGAs and fee-based and commission-based services that support the placement and servicing of insurance policies.
We continue to execute actions to support balanced diversified growth, leveraging both third-party MGAs and our owned MGA to source and underwrite a diversified portfolio of risk across personal and commercial lines. We participate in MGA programs when they align with our risk appetite, and assess performance through disciplined underwriting, selective risk retention, reinsurance, and ongoing portfolio management. Over time, the mix of our written premium base has evolved, and we expect it may continue to evolve, with a lower proportion attributable to homeowners insurance as we further diversify our portfolio across less catastrophe exposed lines of business, primarily Commercial Multi-Peril and Casualty lines.
Line of business disclosure
Line-of-business information represents supplemental premium-related information and is not presented as separate reportable segments. For comparability, certain line-of-business information is presented for all periods shown, including periods prior to the initial introduction of this presentation in our disclosures.
Gross written premium and net written premium by line of business are presented in the Key Operating and Financial Metrics section below. Net earned premium by line of business is presented in the Results of Operations section immediately below.
Reinsurance
We maintain a comprehensive reinsurance program to manage risk exposure, reduce earnings volatility, and safeguard capital. By ceding a portion of our underwriting risk to highly rated reinsurers and alternative capital providers, we limit the financial impact of catastrophe events and large loss activity. Nevertheless, we remain ultimately responsible for policyholder claims should a reinsurer fail to perform.
Our reinsurance strategy includes a mix of quota share and excess of loss (“XOL”) structures, alongside collateralized protection through catastrophe bonds. We work with reinsurers rated “A-” (Excellent) or better by A.M. Best or require appropriate collateral. Contracts often include provisions allowing for replacement of reinsurers whose financial condition deteriorates.
Our catastrophe reinsurance program supports property risks underwritten by us on behalf of our MGA and third-party MGAs. These risks are protected mainly by a corporate level group catastrophe XOL (the “Group Cat”) and in some cases by program-specific XOL treaties, catastrophe bonds, and quota share reinsurance. We are also protected by participation in the Florida Hurricane Catastrophe Fund (“FHCF”). Our catastrophe reinsurance structure is designed to provide protection against severe loss events across the portfolio. Effective June 1, 2026, the catastrophe reinsurance program has an occurrence limit of $512.9 million and an aggregate limit of $776.9 million.
23
Our 2026 program, established in the second quarter of 2026, reflects a shift in the way we purchase catastrophe reinsurance. We consolidated multiple program level XOL contracts into a single Group Cat structure. The new structure also incorporates the previous corporate catastrophe cover. The Group Cat covers all catastrophe exposed business written by us and attaches after inuring any program specific reinsurance, the FHCF, and the catastrophe bonds.
The change to portfolio level management of our reinsurance program allowed us to place a whole account quota share that provides coverage for both property and casualty programs.
The whole account quota share was a strategic reinsurance program placed on June 1, 2026. The contract covers all lines of business, of which we have a retention of at least equal to the reinsurance participation. This aligns our interests with that of the reinsurer. While the whole account quota share provides some property catastrophe relief below the attachment of the Group Cat, it was mainly placed to increase future growth optionality and manage the business on a portfolio basis.
For business written by our MGA, we strategically retain a significant level of risk, reflecting our confidence in the portfolio’s underwriting performance. The business written by our MGA is primarily covered by catastrophe XOL protection.
We also utilize collateralized reinsurance through Mountain Re Ltd., a Bermuda-based special purpose insurer. The catastrophe bonds issued through Mountain Re Ltd. provide multi-year per occurrence coverage for a range of perils, including hurricane and wildfire, for business written through our MGA.
Income Taxes
Based on our assessment of current income and anticipated future earnings, there is a reasonable possibility that we will have sufficient evidence to release a significant portion of the valuation allowance within the next several quarters. However, our judgment regarding future earnings and the exact timing and amount of any valuation allowance release is subject to change due to many factors, including future market conditions and the ability to successfully execute our business plans and/or tax planning strategies. Release of the valuation allowance would result in the recognition of net deferred tax assets on our condensed consolidated balance sheet and would result in a material non-cash income tax benefit in our condensed consolidated statements of operations and comprehensive income (loss) in the period the release is recorded.
24
Results of Operations for the Three Months Ended September 30, 2026 and 2025
The following table summarizes net income for the periods presented:
| Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net earned premium | $ | 128.3 | $ | 99.7 | $ | 28.6 | 29 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commission income, net | 15.6 | 10.5 | 5.1 | 49 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service and fee income | 4.1 | 3.1 | 1.0 | 32 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net investment income | 8.0 | 7.3 | 0.7 | 10 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | 156.0 | 120.6 | 35.4 | 29 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | 72.7 | 47.5 | 25.2 | 53 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insurance related expenses | 39.3 | 32.9 | 6.4 | 19 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Technology and development expenses | 11.0 | 8.0 | 3.0 | 38 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing expenses | 5.9 | 8.0 | (2.1) | (26) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General and administrative expenses | 17.0 | 16.5 | 0.5 | 3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impairment and restructuring charges | — | 3.8 | (3.8) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sale of business | — | (95.0) | 95.0 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and other expense, net | 1.2 | 0.8 | 0.4 | 50 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 147.1 | 22.5 | 124.6 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 8.9 | 98.1 | (89.2) | (91) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 0.1 | — | 0.1 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | 8.8 | 98.1 | (89.3) | (91) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to Hippo | $ | 8.8 | $ | 98.1 | $ | (89.3) | (91) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
“NM” (not meaningful) is used where the base period is near-zero and percentage change would be misleading.
Net Earned Premium
The following table summarizes our net earned premiums by line of business for each period:
| Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Line of Business | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homeowners | $ | 66.1 | $ | 63.9 | $ | 2.2 | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Renters | 19.1 | 18.7 | 0.4 | 2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Multi-Peril | 25.9 | 13.8 | 12.1 | 88 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Casualty | 15.9 | 3.2 | 12.7 | 397 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 1.3 | 0.1 | 1.2 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 128.3 | $ | 99.7 | $ | 28.6 | 29 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
“NM” (not meaningful) is used where the base period is near-zero and percentage change would be misleading.
For the three months ended September 30, 2026, net earned premium was $128.3 million, an increase of $28.6 million, or 29% compared to $99.7 million for the three months ended September 30, 2025. The increase was due primarily to the earning of increased gross written premium volume in our Commercial Multi-Peril and Casualty lines.
25
Commission Income, Net
For the three months ended September 30, 2026, commission income, net was $15.6 million, an increase of $5.1 million, or 49%, compared to $10.5 million for the three months ended September 30, 2025. The increase was due primarily to an increase in fronting fee revenue of $4.9 million earned from third-party MGA program partners, driven by growth across our Commercial Multi-Peril and Casualty lines.
Service and Fee Income
For the three months ended September 30, 2026, service and fee income was $4.1 million, an increase of $1.0 million, or 32%, compared to $3.1 million for the three months ended September 30, 2025. The increase was due primarily to an increase in service fees of $0.8 million.
Net Investment Income
For the three months ended September 30, 2026, net investment income was $8.0 million, an increase of $0.7 million, or 10%, compared to $7.3 million for the three months ended September 30, 2025. The increase was due primarily to higher average balance in cash and investments during the period. The Company’s investment portfolio is primarily comprised of securities issued by the U.S. government and agencies, money market accounts, high-grade corporate securities, asset backed securities, and residential and commercial mortgage-backed securities.
Losses and Loss Adjustment Expenses
For the three months ended September 30, 2026, losses and loss adjustment expenses were $72.7 million, an increase of $25.2 million, or 53%, compared to $47.5 million for the three months ended September 30, 2025. The increase was due primarily to an increase in non-catastrophe losses related to premium growth and a shift in business mix towards our Commercial Multi-Peril and Casualty lines of business as well as an increase in catastrophe losses due primarily to an immaterial amount of catastrophe losses in the prior year period. Losses and loss adjustment expenses consisted of the following elements during the respective periods:
| Three Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||
Catastrophe losses | $ | 8.3 | $ | (0.3) | $ | 8.6 | NM | ||||||||||||||||
Non-catastrophe losses | 64.4 | 47.8 | 16.6 | 35 | % | ||||||||||||||||||
| Total losses and loss adjustment expenses | $ | 72.7 | $ | 47.5 | 25.2 | 53 | % | ||||||||||||||||
Catastrophe loss ratio | 6.5 | % | (0.3) | % | |||||||||||||||||||
Non-catastrophe loss ratio | 50.2 | % | 47.9 | % | |||||||||||||||||||
| Net loss ratio | 56.7 | % | 47.6 | % | |||||||||||||||||||
Catastrophe losses for the three months ended September 30, 2026 were primarily related to convective storm, weather, and wildfire activity as compared to an immaterial activity for the three months ended September 30, 2025.
There was an immaterial impact related to prior year developments included in our catastrophe loss ratio for the three months ended September 30, 2026 as compared to a benefit of 1 percentage point for the three months ended September 30, 2025.
The non-catastrophe loss ratio increased due primarily to a shift in business mix toward our Commercial Multi-Peril and Casualty lines of business which carry higher expected loss ratios than our Homeowners and Renters lines. There was an immaterial impact related to prior year developments included in our non-catastrophe loss ratio for the three months ended September 30, 2026 and 2025.
26
Insurance Related Expenses
For the three months ended September 30, 2026, insurance related expenses were $39.3 million, an increase of $6.4 million, or 19%, compared to $32.9 million for the three months ended September 30, 2025. The increase was due primarily to an increase in net acquisition expenses of $7.1 million due to increased premium, partially offset by a decrease in other insurance related costs.
Technology and Development Expenses
For the three months ended September 30, 2026, technology and development expenses were $11.0 million, an increase of $3.0 million, or 38%, compared to $8.0 million for the three months ended September 30, 2025. The increase was due primarily to higher headcount, including an increase in headcount to support a transition services agreement with associated service fee income.
Sales and Marketing Expenses
For the three months ended September 30, 2026, sales and marketing expenses were $5.9 million, a decrease of $2.1 million, or 26%, compared to $8.0 million for the three months ended September 30, 2025. The decrease was due primarily to a $1.4 million reduction in employee-related costs resulting from lower headcount as well as a decrease in consulting costs.
General and Administrative Expenses
For the three months ended September 30, 2026, general and administrative expenses were $17.0 million, an increase of $0.5 million, or 3%, compared to $16.5 million for the three months ended September 30, 2025. The increase was due primarily to an increase in employee-related expenses of $0.4 million due to an increase in headcount.
Impairment and Restructuring Charges
For the three months ended September 30, 2026, we incurred no impairment and restructuring charges, compared to $3.8 million for the three months ended September 30, 2025 which resulted from the impairment of capitalized software which had been determined to have no future useful life due to the sale of our homebuilder distribution network.
Gain on Sale of Business
For the three months ended September 30, 2025, we recognized a gain on sale of $95.0 million related to the sale of our homebuilder distribution network.
Interest and other expense, net
For the three months ended September 30, 2026, interest and other expense, net was $1.2 million, an increase of $0.4 million, compared to interest and other expense, net of $0.8 million for the three months ended September 30, 2025. The increase was due primarily to $0.4 million of income from a transition services agreement recorded in the prior-year period, which did not recur in the current period. Both periods include $1.2 million of interest expense on our surplus note issued in June 2025.
Income Taxes
For the three months ended September 30, 2026 and 2025, income tax expense was $0.1 million and $0.0 million, respectively.
Net Income Attributable to Hippo
For the three months ended September 30, 2026, net income attributable to Hippo was $8.8 million, a decrease of $89.3 million compared to a net income attributable to Hippo of $98.1 million for the three months ended September 30, 2025 due to the factors described above.
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Results of Operations for the Nine Months Ended September 30, 2026 and 2025
The following table summarizes net income for the periods presented:
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
| Net earned premium | $ | $ | $ | 64.9 | 23 | % | |||||||||||||||||||||||||||||||||||||||||
| Commission income, net | 4.4 | 11 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Service and fee income | 2.2 | 25 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Net investment income | 2.5 | 13 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | 422.2 | 348.2 | 74.0 | 21 | % | ||||||||||||||||||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | (4.4) | (2) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Insurance related expenses | 17.0 | 18 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Technology and development expenses | 6.3 | 26 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing expenses | (7.6) | (29) | % | ||||||||||||||||||||||||||||||||||||||||||||
| General and administrative expenses | 1.0 | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Impairment and restructuring charges | (5.0) | NM | |||||||||||||||||||||||||||||||||||||||||||||
| Gain on sale of business | ( | 95.0 | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Interest and other expense, net | 1.1 | 157 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 395.1 | 291.7 | 103.4 | 35 | % | ||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 56.5 | (29.4) | (52) | % | |||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | ( | 1.2 | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Net income | 56.6 | (30.6) | (54) | % | |||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests, net of tax | (4.9) | NM | |||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to Hippo | $ | $ | 51.7 | $ | (25.7) | (50) | % | ||||||||||||||||||||||||||||||||||||||||
“NM” (not meaningful) is used where the base period is near-zero and percentage change would be misleading.
Net Earned Premium
The following table summarizes our net earned premiums by line of business for each period:
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||||||||
| Line of Business | |||||||||||||||||||||||||||||||||||
| Homeowners | $ | 194.4 | $ | 187.7 | $ | 6.7 | 4 | % | |||||||||||||||||||||||||||
| Renters | 54.1 | 54.0 | 0.1 | — | % | ||||||||||||||||||||||||||||||
| Commercial Multi-Peril | 65.6 | 32.4 | 33.2 | 102 | % | ||||||||||||||||||||||||||||||
Casualty | 29.8 | 4.5 | 25.3 | 562 | % | ||||||||||||||||||||||||||||||
| Other | 2.0 | 2.4 | (0.4) | (17) | % | ||||||||||||||||||||||||||||||
| Total | $ | 345.9 | $ | 281.0 | $ | 64.9 | 23 | % | |||||||||||||||||||||||||||
For the nine months ended September 30, 2026, net earned premium was $345.9 million, an increase of $64.9 million, or 23% compared to $281.0 million for the nine months ended September 30, 2025. The increase was due primarily to the earning of increased gross written premium volume across our Commercial Multi-Peril and Casualty lines.
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Commission Income, Net
For the nine months ended September 30, 2026, commission income, net was $44.0 million, an increase of $4.4 million, or 11%, compared to $39.6 million for the nine months ended September 30, 2025. The increase was due primarily to an increase in fronting fee revenue of $15.1 million earned from third-party MGA program partners driven by growth across our Commercial Multi-Peril and Casualty lines, partially offset by a decrease in agency commissions of $10.3 million due to the sale of our homebuilder distribution network in the third quarter of 2025.
Service and Fee Income
For the nine months ended September 30, 2026, service and fee income was $11.0 million, an increase of $2.2 million, or 25%, compared to $8.8 million for the nine months ended September 30, 2025. The increase is due primarily to an increase in service fees of $1.7 million.
Net Investment Income
For the nine months ended September 30, 2026, net investment income was $21.3 million, an increase of $2.5 million, or 13%, compared to $18.8 million for the nine months ended September 30, 2025. The increase was due primarily to higher average balance in cash and investments during the period. The Company’s investment portfolio is primarily comprised of securities issued by the U.S. government and agencies, money market accounts, high-grade corporate securities, asset backed securities, and residential and commercial mortgage-backed securities.
Losses and Loss Adjustment Expenses
For the nine months ended September 30, 2026, losses and loss adjustment expenses were $180.0 million, a decrease of $4.4 million, or 2%, compared to $184.4 million for the nine months ended September 30, 2025. The decrease was due primarily to lower catastrophe losses, as the prior year period included losses from a series of destructive wildfires affecting Los Angeles, California (the “LA Wildfires”) in January 2025. These were partially offset by an increase in non-catastrophe losses due primarily to premium growth and a shift in business mix towards our Commercial Multi-Peril and Casualty lines. Losses and loss adjustment expenses consisted of the following elements during the respective periods:
| Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
Catastrophe losses | $ | 20.6 | $ | 62.1 | $ | (41.5) | (67) | % | |||||||||||||||
Non-catastrophe losses | 159.4 | 122.3 | 37.1 | 30 | % | ||||||||||||||||||
| Total losses and loss adjustment expenses | $ | 180.0 | $ | 184.4 | $ | (4.4) | (2) | % | |||||||||||||||
Catastrophe loss ratio | 6.0 | % | 22.1 | % | |||||||||||||||||||
Non-catastrophe loss ratio | 46.1 | % | 43.5 | % | |||||||||||||||||||
| Net loss ratio | 52.1 | % | 65.6 | % | |||||||||||||||||||
Catastrophe loss activity for the nine months ended September 30, 2026 was primarily related to convective storm, weather, and wildfire activity while catastrophe loss activity for the nine months ended September 30, 2025 was due primarily to the LA Wildfires.
Included in our catastrophe loss ratio for the nine months ended September 30, 2026 and 2025 was a benefit of 1 percentage point related to prior year developments in both periods.
Non-catastrophe loss ratio increased due primarily to lower prior year favorable developments.
Included in our non-catastrophe loss ratio for the nine months ended September 30, 2026, is an immaterial impact related to prior year developments and a net benefit of 1 percentage point related to a gain from a reinsurance commutation, whereas for the nine months ended September 30, 2025, there was a benefit of 3 percentage points related to prior year developments.
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Insurance Related Expenses
For the nine months ended September 30, 2026, insurance related expenses were $112.9 million, an increase of $17.0 million, or 18%, compared to $95.9 million for the nine months ended September 30, 2025. The increase was due primarily to an increase in net acquisition expenses of $15.6 million due to increased premium.
Technology and Development Expenses
For the nine months ended September 30, 2026, technology and development expenses were $30.5 million, an increase of $6.3 million, or 26%, compared to $24.2 million for the nine months ended September 30, 2025. The increase was due primarily to higher headcount, including an increase in headcount to support a transition services agreement with associated service fee income.
Sales and Marketing Expenses
For the nine months ended September 30, 2026, sales and marketing expenses were $18.5 million, a decrease of $7.6 million, or 29%, compared to $26.1 million for the nine months ended September 30, 2025. The decrease was due primarily to a $5.2 million reduction in employee-related costs resulting from lower headcount due to the sale of our homebuilder distribution network in the third quarter of 2025. The decrease also reflects the elimination of $0.8 million in amortization of intangible assets acquired in connection with our homebuilder distribution network, which was sold in the third quarter of 2025.
General and Administrative Expenses
For the nine months ended September 30, 2026, general and administrative expenses were $51.4 million, an increase of $1.0 million, or 2%, compared to $50.4 million for the nine months ended September 30, 2025. The increase was due primarily to an increase in employee-related expenses of $0.8 million due to an increase in headcount.
Impairment and Restructuring Charges
For the nine months ended September 30, 2026, we incurred no impairment and restructuring charges, compared to $5.0 million for the nine months ended September 30, 2025 which resulted from the impairment of capitalized software which had been determined to have no future useful life due to the sale of our homebuilder distribution network, and the impairment of a lease right-of-use asset due to termination of leased office space.
Gain on Sale of Business
For the nine months ended September 30, 2025, we recognized a gain on sale of $95.0 million related to the sale of our homebuilder distribution network.
Interest and other expense, net
For the nine months ended September 30, 2026, interest and other expense, net were $1.8 million, an increase of $1.1 million, compared to interest and other expense, net of $0.7 million for the nine months ended September 30, 2025. The increase was due primarily to an increase in interest expense of $2.0 million on our surplus note issued in June 2025, partially offset by $1.1 million of earnout consideration received in connection with a prior divestiture.
Income Taxes
For the nine months ended September 30, 2026 and 2025, income tax expense was $1.1 million and benefit of $0.1 million, respectively. The increase was due primarily to an increase in current expense for state income taxes.
Net Income Attributable to Noncontrolling Interest, net of tax
For the nine months ended September 30, 2026, there is no net income attributable to noncontrolling interest, compared to $4.9 million for the nine months ended September 30, 2025. The decrease was due to the elimination of the remaining noncontrolling interests related to the sale of our homebuilder distribution network.
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Net Income Attributable to Hippo
For the nine months ended September 30, 2026, net income attributable to Hippo was $26.0 million, a decrease of $25.7 million compared to a net income attributable to Hippo of $51.7 million for the nine months ended September 30, 2025 due to the factors described above.
Key Operating and Financial Metrics and Non-GAAP Measures
We regularly review the following operating and financial metrics to evaluate our business, measure our performance, identify trends in our business, prepare forecasts, and make capital allocation and strategic decisions. Certain metrics discussed below are non-GAAP financial measures. Management uses non-GAAP measures to evaluate operating performance and trends that may not be apparent from GAAP results alone. Non-GAAP measures should be considered supplemental to, and not a substitute for, the most directly comparable GAAP measures, and may not be comparable to similarly titled measures used by other companies. Reconciliations of the non-GAAP measures to the most directly comparable GAAP measures are provided below. For certain non-GAAP financial measures that are expressed as ratios or per-share amounts, the reconciliation to the most directly comparable GAAP financial measure is provided through the calculation of the measure using GAAP components, as presented below.
How we evaluate performance
We evaluate performance on both a GAAP basis and, given the nature of our business, through insurance-specific non-GAAP operating metrics, which include a combination of (i) growth and mix metrics, (ii) underwriting performance metrics, and (iii) profitability, return and capital efficiency metrics.
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The table below summarizes selected operating, growth and mix, underwriting, and profitability metrics that management uses to evaluate performance across periods.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||||||
Gross written premium | $ | 498.1 | $ | 311.2 | $ | 1,312.7 | $ | 820.7 | |||||||||||||||||||||
Ceded written premium | (349.0) | (193.3) | (879.0) | (495.6) | |||||||||||||||||||||||||
| Net written premium | 149.1 | 117.9 | 433.7 | 325.1 | |||||||||||||||||||||||||
Total revenue | 156.0 | 120.6 | 422.2 | 348.2 | |||||||||||||||||||||||||
| Net income attributable to Hippo | 8.8 | 98.1 | 26.0 | 51.7 | |||||||||||||||||||||||||
Adjusted net income(1) | 20.0 | 18.3 | 58.2 | 0.2 | |||||||||||||||||||||||||
| Net income per share attributable to Hippo, basic | 0.33 | 3.90 | 0.99 | 2.04 | |||||||||||||||||||||||||
| Net income per share attributable to Hippo, diluted | 0.33 | 3.77 | 0.98 | 1.97 | |||||||||||||||||||||||||
Diluted adjusted earnings per share(1) | 0.74 | 0.70 | 2.19 | 0.01 | |||||||||||||||||||||||||
Annualized adjusted return on equity(1) | 17.1 | % | 19.4 | % | 17.1 | % | 0.1 | % | |||||||||||||||||||||
Net loss ratio | 56.7 | % | 47.6 | % | 52.1 | % | 65.6 | % | |||||||||||||||||||||
| Catastrophe loss ratio | 6.5 | % | (0.3) | % | 6.0 | % | 22.1 | % | |||||||||||||||||||||
| Non-catastrophe loss ratio | 50.2 | % | 47.9 | % | 46.1 | % | 43.5 | % | |||||||||||||||||||||
Expense ratio | 41.7 | % | 52.0 | % | 45.8 | % | 52.7 | % | |||||||||||||||||||||
| Combined ratio | 98.4 | % | 99.6 | % | 97.9 | % | 118.3 | % | |||||||||||||||||||||
| As of | |||||||||||||||||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Book value per share | $ | 17.62 | $ | 16.97 | |||||||||||||||||||
Tangible book value per share(1) | $ | 15.59 | $ | 14.76 | |||||||||||||||||||
(1) Indicates a non-GAAP financial measure.
Growth and mix metrics
Gross Written Premium
Gross written premium (“GWP”) is the amount received or to be received for insurance policies written or assumed by us and our affiliates as a carrier or captive reinsurer, without reduction for policy acquisition costs, reinsurance costs, or other deductions. The volume of our gross written premium in any given period is generally influenced by:
•New business submissions;
•Binding of new business submissions into policies;
•Bound policies going effective;
•Renewals of existing policies; and
•Average size and premium rate of bound policies.
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Ceded Written Premium
Ceded written premium (“CWP”) is the amount of gross written premium written or assumed by us and our affiliates as a carrier that we cede to reinsurers. We enter into reinsurance contracts to limit our exposure to losses, to provide additional capacity for growth, and to support our underwriting business. Ceded written premium is treated as a reduction from gross written premium. The volume of our ceded written premium is impacted by the level of our gross written premium and decisions we make to increase or decrease retention levels, as well as the volume of our underwriting business.
Net Written Premium
Net written premium (“NWP”) is calculated as the amount of gross written premium written less ceded written premium.
Management uses growth and mix metrics to assess growth trends, changes in business mix, retention, and the scale of underwriting activities.
The following table summarizes our gross written premiums by line of business:
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homeowners | $ | 112.2 | $ | 101.0 | $ | 11.2 | 11 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Renters | 73.9 | 59.3 | 14.6 | 25 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Multi-Peril | 107.8 | 66.0 | 41.8 | 63 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Casualty | 187.6 | 76.3 | 111.3 | 146 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 16.6 | 8.6 | 8.0 | 93 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 498.1 | $ | 311.2 | $ | 186.9 | 60 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homeowners | $ | 306.2 | $ | 288.2 | $ | 18.0 | 6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Renters | 164.3 | 138.5 | 25.8 | 19 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Multi-Peril | 341.2 | 200.0 | 141.2 | 71 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Casualty | 467.7 | 175.5 | 292.2 | 166 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 33.3 | 18.5 | 14.8 | 80 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 1,312.7 | $ | 820.7 | $ | 492.0 | 60 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2026, gross written premium was $498.1 million, an increase of $186.9 million, or 60%, compared to $311.2 million for the three months ended September 30, 2025. The increase was primarily driven by growth in our Casualty and Commercial Multi-Peril lines of business. This growth was supported by increased volume from existing program relationships and expansion into new program relationships.
For the nine months ended September 30, 2026, gross written premium was $1,312.7 million, an increase of $492.0 million, or 60%, compared to $820.7 million for the nine months ended September 30, 2025. The increase was primarily driven by growth in our Casualty and Commercial Multi-Peril lines of business. This growth was supported by increased volume from existing program relationships and expansion into new program relationships.
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The following table summarizes our net written premiums by line of business:
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homeowners | $ | 74.0 | $ | 75.7 | $ | (1.7) | (2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Renters | 28.8 | 26.4 | 2.4 | 9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Multi-Peril | 20.4 | 13.6 | 6.8 | 50 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Casualty | 19.7 | 3.7 | 16.0 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 6.2 | (1.5) | 7.7 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 149.1 | $ | 117.9 | $ | 31.2 | 26 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homeowners | $ | 210.9 | $ | 191.5 | $ | 19.4 | 10 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Renters(1) | 59.0 | 83.0 | (24.0) | (29) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Multi-Peril | 88.8 | 52.0 | 36.8 | 71 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Casualty | 67.6 | 6.4 | 61.2 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 7.4 | (7.8) | 15.2 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 433.7 | $ | 325.1 | $ | 108.6 | 33 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
(1) In the first quarter of 2025, Renters net written premium exceeded gross written premium due to a one-time reduction in ceded unearned premium resulting from the restructuring of the Renters reinsurance program effective January 1, 2025.
“NM” (not meaningful) is used where the base period is near-zero and percentage change would be misleading.
For the three months ended September 30, 2026, net written premium was $149.1 million, an increase of $31.2 million, or 26%, compared to $117.9 million for the three months ended September 30, 2025. The increase was primarily driven by higher gross written premiums in our Casualty and Commercial Multi-Peril lines, higher retention levels in our Casualty line, and higher retention levels in our Other line due to assumed premium.
For the nine months ended September 30, 2026, net written premium was $433.7 million, an increase of $108.6 million, or 33%, compared to $325.1 million for the nine months ended September 30, 2025. The increase was primarily driven by higher gross written premiums in our Casualty and Commercial Multi-Peril lines, higher retention levels in our Casualty line, and higher retention levels in our Other line due to assumed premium.
Net retention, calculated as net written premium divided by gross written premium, was 30% and 38%, for the three months ended September 30, 2026 and 2025, respectively, and 33% and 40%, for the nine months ended September 30, 2026 and 2025, respectively.
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Underwriting performance metrics
Net Losses and Loss Adjustment Expense ratios
Catastrophe loss ratio, expressed as a percentage, is the ratio of catastrophe losses and LAE to the net earned premium.
Non-catastrophe loss ratio, expressed as a percentage, is the ratio of the net non-catastrophe losses and LAE to the net earned premium.
Net loss ratio, expressed as a percentage, is the ratio of the net losses and LAE to the net earned premium.
Management uses these metrics to assess underwriting performance, evaluate pricing adequacy, risk selection, portfolio quality and trends in loss experience.
Losses and loss adjustment expenses consisted of the following components during the respective periods:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||
Catastrophe losses | $ | 8.3 | $ | (0.3) | $ | 20.6 | $ | 62.1 | |||||||||||||||||||||
Non-catastrophe losses | 64.4 | 47.8 | 159.4 | 122.3 | |||||||||||||||||||||||||
| Total losses and loss adjustment expenses | $ | 72.7 | $ | 47.5 | $ | 180.0 | $ | 184.4 | |||||||||||||||||||||
Net earned premium | $ | 128.3 | $ | 99.7 | $ | 345.9 | $ | 281.0 | |||||||||||||||||||||
Net loss ratio | 56.7 | % | 47.6 | % | 52.1 | % | 65.6 | % | |||||||||||||||||||||
| Catastrophe loss ratio | 6.5 | % | (0.3) | % | 6.0 | % | 22.1 | % | |||||||||||||||||||||
| Non-catastrophe loss ratio | 50.2 | % | 47.9 | % | 46.1 | % | 43.5 | % | |||||||||||||||||||||
Expense Ratio
Expense ratio, expressed as a percentage, is the ratio of insurance related expenses, technology and development expenses, sales and marketing expenses, and general and administrative expenses, net of commission income, net service and fee income, to net earned premiums. Management uses this metric to evaluate operating leverage, cost efficiency, effectiveness of pricing, and expense management actions. Other companies may define expense ratio differently.
Expense ratio is calculated as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||
Net earned premium | $ | 128.3 | $ | 99.7 | $ | 345.9 | $ | 281.0 | |||||||||||||||||||||
| Net expenses: | |||||||||||||||||||||||||||||
| Insurance related expenses | $ | 39.3 | $ | 32.9 | $ | 112.9 | $ | 95.9 | |||||||||||||||||||||
Technology and development expenses | 11.0 | 8.0 | 30.5 | 24.2 | |||||||||||||||||||||||||
Sales and marketing expenses | 5.9 | 8.0 | 18.5 | 26.1 | |||||||||||||||||||||||||
General and administrative expenses | 17.0 | 16.5 | 51.4 | 50.4 | |||||||||||||||||||||||||
| Less: commission income, net and service and fee income | (19.7) | (13.6) | (55.0) | (48.4) | |||||||||||||||||||||||||
| Total net expenses | $ | 53.5 | $ | 51.8 | $ | 158.3 | $ | 148.2 | |||||||||||||||||||||
Expense ratio | 41.7 | % | 52.0 | % | 45.8 | % | 52.7 | % | |||||||||||||||||||||
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Combined Ratio
Combined ratio is defined as the sum of the net loss ratio and the expense ratio. Management uses the combined ratio as a comprehensive measure of underwriting profitability. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss. Management uses this metric to evaluate our operating performance.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||
Expense ratio | 41.7 | % | 52.0 | % | 45.8 | % | 52.7 | % | |||||||||||||||||||||
Net loss ratio | 56.7 | % | 47.6 | % | 52.1 | % | 65.6 | % | |||||||||||||||||||||
Combined ratio | 98.4 | % | 99.6 | % | 97.9 | % | 118.3 | % | |||||||||||||||||||||
Profitability, return and capital efficiency metrics
Adjusted Net Income
Adjusted Net Income is a non-GAAP financial measure, defined as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments which would be included in calculating our income tax expense using the estimated tax rate at which the Company received a deduction for these adjustments.
We define Adjusted Net Income as net income attributable to Hippo adjusted for, as applicable, (i) depreciation and amortization, (ii) stock-based compensation expense, (iii) the impact of other non-cash fair market value adjustments, (iv) impairment and restructuring related expenses, (v) gain or loss on the sale of a business, (vi) net realized gains or losses on investments and (vii) certain other items, which primarily include the receipt of earnout consideration and certain legal fees and settlement costs (gains), net of tax impact. We exclude the impact of depreciation and amortization, stock-based compensation expense, and non-cash fair market value adjustments, because these are non-cash expenses or non-cash fair value adjustments and we believe that excluding these items provides meaningful information regarding performance and ongoing cash-generation potential. We exclude impairment and restructuring related expenses, gain or loss on sale of business, and certain other items because we do not believe they are reflective of the cost of operating our business on an ongoing basis.
Management uses this measure to evaluate our underlying business performance. Adjusted net income does not reflect the overall profitability of our business.
Shown below is the adjusted net income for the following periods and a reconciliation of this measure of performance to net income as presented in the consolidated statements of operations and comprehensive income:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
| Net income attributable to Hippo | $ | 8.8 | $ | 98.1 | $ | 26.0 | $ | 51.7 | |||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
| Depreciation and amortization | 4.9 | 4.7 | 14.5 | 15.6 | |||||||||||||||||||||||||
| Stock-based compensation | 6.3 | 7.0 | 19.4 | 22.6 | |||||||||||||||||||||||||
| Fair value adjustments | — | — | — | (0.2) | |||||||||||||||||||||||||
| Other items | — | (0.3) | (1.8) | 0.5 | |||||||||||||||||||||||||
| Impairment and restructuring charges | — | 3.8 | — | 5.0 | |||||||||||||||||||||||||
| Gain on sale of a business | — | (95.0) | — | (95.0) | |||||||||||||||||||||||||
| Realized losses on investments | — | — | 0.1 | — | |||||||||||||||||||||||||
| Tax impact of adjustments | — | — | — | — | |||||||||||||||||||||||||
| Adjusted net income | $ | 20.0 | $ | 18.3 | $ | 58.2 | $ | 0.2 | |||||||||||||||||||||
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Diluted Adjusted Earnings per Share
Diluted Adjusted Earnings per Share is a non‑GAAP financial measure defined as adjusted net income divided by the weighted average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. Management uses this measure to assess performance on a per-share basis across periods. Diluted adjusted earnings per share should not be viewed as a substitute for diluted earnings per share calculated in accordance with GAAP, and other companies may define diluted adjusted earnings per share differently.
Diluted adjusted earnings per share is calculated as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
(in millions, except share and per share data) | |||||||||||||||||||||||
| Adjusted net income | $ | 20.0 | $ | 18.3 | $ | 58.2 | $ | 0.2 | |||||||||||||||
Weighted average common shares outstanding, diluted(1) | 27,030,298 | 26,025,069 | 26,628,602 | 26,186,034 | |||||||||||||||||||
| Diluted adjusted earnings per share | $ | 0.74 | $ | 0.70 | $ | 2.19 | $ | 0.01 | |||||||||||||||
(1)For additional information refer to Note 15, Net Income Per Share Attributable to Common Stockholders, of the unaudited interim condensed consolidated financial statements.
Annualized Adjusted Return on Equity
Annualized adjusted return on equity is a non‑GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. Management uses this measure to evaluate capital efficiency and returns generated on deployed capital. Annualized adjusted return on equity should not be viewed as a substitute for return on equity calculated using unadjusted GAAP numbers, and other companies may define adjusted return on equity differently.
Annualized adjusted return on equity is calculated as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||
| Annualized adjusted net income | $ | 80.0 | $ | 73.2 | $ | 77.6 | $ | 0.3 | |||||||||||||||||||||
| Average Hippo stockholders’ equity | 467.3 | 377.0 | 452.6 | 391.8 | |||||||||||||||||||||||||
| Annualized adjusted return on equity | 17.1 | % | 19.4 | % | 17.1 | % | 0.1 | % | |||||||||||||||||||||
Tangible Book Value Per Share
Tangible Book Value Per Share is a non-GAAP financial measure defined as total stockholders’ equity, less intangible assets and capitalized internal use software, divided by the outstanding number of shares of our common stock at the end of the relevant period. Management uses this measure to evaluate changes from period to period in book value per share exclusive of changes in intangible assets in order to assess capital position and balance sheet strength. Tangible book value per share should not be viewed as a substitute for book value per share calculated in accordance with GAAP, and other companies may define tangible book value per share differently.
Shown below are the tangible book value per share as of the following dates and a reconciliation of this measure of performance to Hippo stockholders’ equity as presented in the consolidated balance sheet.
37
| As of | |||||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||
(in millions, except share and per share data) | |||||||||||
Hippo stockholders’ equity | $ | 469.0 | $ | 436.1 | |||||||
| Less: Intangible assets | 13.1 | 13.8 | |||||||||
Less: Capitalized internal use software | 40.9 | 43.0 | |||||||||
| Tangible stockholders’ equity | $ | 415.0 | $ | 379.3 | |||||||
| Shares outstanding | 26,621,710 | 25,699,704 | |||||||||
| Tangible book value per share | $ | 15.59 | $ | 14.76 | |||||||
Liquidity and Capital Resources
Sources of Liquidity
Our existing sources of liquidity include cash and cash equivalents and marketable securities. As of September 30, 2026, we had $311.8 million of cash and cash equivalents, $15.0 million of restricted cash, and $499.1 million of available-for-sale fixed income securities and short-term investments. We believe our cash, cash equivalents and short-term securities will be sufficient to fund our operations for at least the next twelve months following the date of this Quarterly Report on Form 10-Q.
In addition, we are a member of the Federal Home Loan Bank (FHLB) of New York, which provides secured borrowing capacity. Our borrowing capacity as of September 30, 2026, is $59.4 million, and there were no outstanding amounts under this agreement.
The Company issued a surplus note on June 2, 2025 in the amount of $50.0 million. The surplus note issuance provides additional statutory capital and further supports our operational and growth initiatives.
To date, we have funded operations primarily with issuances of convertible preferred stock, convertible promissory notes, common stock and a surplus note, as well as from asset dispositions and revenue. While we have achieved profitability in recent quarters, we cannot assure that we will continue to generate sufficient revenue and other income to cover operating expenses, working capital and capital expenditures in the longer term. We expect the funds raised as discussed above to fund our cash needs. However, our capital requirements depend on many factors, including the volume of issuances of insurance policies, the timing and extent of spending to support research and development efforts, investments in information technology systems, and the expansion of sales and marketing activities. In the future, we may raise additional funds through the issuance of debt or equity securities or through borrowing. We cannot assure that such funds will be on favorable terms, or available at all.
Cash Flow Summary
The following table summarizes our cash flows for the periods presented:
| Nine Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| (in millions) | |||||||||||||||||
| Net cash provided by (used in): | |||||||||||||||||
| Operating activities | $ | 124.2 | $ | 6.0 | $ | 118.2 | |||||||||||
| Investing activities | $ | (51.5) | $ | 14.5 | $ | (66.0) | |||||||||||
| Financing activities | $ | 4.0 | $ | 18.9 | $ | (14.9) | |||||||||||
38
Operating Activities
Cash provided by operating activities was $124.2 million for the nine months ended September 30, 2026, a change of $118.2 million, from cash provided by operating activities of $6.0 million for the nine months ended September 30, 2025. The increase was due primarily to growth in earned premium, and lower levels of losses paid due to the absence of claim payments related to the January 2025 LA Wildfires, partially offset by higher cash outflows for settlements of ceded reinsurance and lower cash inflow from agency commissions due to the sale of our homebuilder distribution network in the third quarter of 2025.
Variations in operating cash flow between periods are primarily driven by variations in our gross and ceded written premiums and the volume and timing of premium receipts, claim payments, reinsurance payments, and reinsurance recoveries on paid losses. In addition, fluctuations in losses and loss adjustment expenses and other insurance operating expenses impact operating cash flows.
Investing Activities
Cash used in investing activities was $51.5 million for the nine months ended September 30, 2026, due primarily to the purchases of investment securities, partially offset by the maturities and sales of investment securities and proceeds of deferred consideration.
Cash provided by investing activities was $14.5 million for the nine months ended September 30, 2025, due primarily to the maturities of investment securities and the proceeds from sale of business, net of cash disposed, partially offset by purchases of investment securities.
Financing Activities
Cash provided by financing activities was $4.0 million for the nine months ended September 30, 2026, primarily driven by proceeds from common stock issuances and change in fiduciary liabilities.
Cash provided by financing activities was $18.9 million for the nine months ended September 30, 2025, primarily driven by proceeds from the surplus note and common stock issuances. These are partially offset by share repurchases under program, taxes paid related to net share settlement of RSUs, and distributions to noncontrolling interests and change in fiduciary liabilities.
Material Cash Requirements
Our material cash requirements from known contractual and other obligations primarily relate to unpaid losses and loss adjustment expense, our surplus note, purchase commitments, and lease payments. There have been no material changes to our contractual obligations from those described in the Annual Report on Form 10-K for the year ended December 31, 2025, other than an increase in Unpaid Losses and Loss Adjustment Expense. The estimation of the unpaid losses and loss adjustment expenses is based on various complex and subjective judgments. Actual losses paid may differ, perhaps significantly, from the reserve estimates reflected in our unaudited interim condensed consolidated financial statements. Similarly, the timing of payment of our estimated losses is not fixed and there may be significant changes in actual payment activity. The assumptions used in estimating the likely payments due by period are based on our historical claims payment experience and industry payment patterns, but due to the inherent uncertainty in the process of estimating the timing of such payments, there is a risk that the amounts paid can be significantly different from the amounts disclosed.
Critical Accounting Policies and Estimates
Our discussion and analysis of our financial condition and results of operations are based upon our unaudited interim condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of our financial statements requires us to make estimates and judgments that affect the reported amounts in our unaudited interim condensed consolidated financial statements. We evaluate our estimates on an ongoing basis, including those related to our revenue, losses and loss adjustment expense reserve, recoverability of our net deferred tax asset, and intangible assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Although actual results have historically been reasonably consistent with management’s expectations, the actual results may differ from these estimates, or our estimates may be affected by different assumptions or conditions.
39
Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our 2025 Annual Report on Form 10-K and the notes to the unaudited interim condensed consolidated financial statements appearing elsewhere in this Quarterly Report. During the nine months ended September 30, 2026, there were no material changes to our critical accounting policies from those discussed in our 2025 Annual Report on Form 10-K.
Recent Accounting Pronouncements
The information set forth under Note 1 to the unaudited interim condensed consolidated financial statements under the caption “Description of Business and Summary of Significant Accounting Policies” is incorporated herein by reference.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in market risk from the information provided in our Annual Report on Form 10-K for the year ended December 31, 2025. Refer to Note 2 to the unaudited interim condensed consolidated financial statements under the caption “Investments” for additional information regarding interest rate risk.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our chief executive officer and our chief financial officer have concluded, based upon their evaluation as of the end of the period covered by this report, that the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) are effective in providing reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosures.
In designing and evaluating the disclosure controls and procedures and internal control over financial reporting, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Changes in Internal Control Over Financial Reporting
There was no change in our internal control over financial reporting (as that term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal quarter ended September 30, 2026 covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
40
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We are, from time to time, party to various claims and legal proceedings arising in the ordinary course of our business. Given that such proceedings are subject to uncertainty, there can be no assurance that any such legal proceedings, either individually or in the aggregate, will not have a material adverse effect on our business, results of operations, financial condition or cash flows. The information set forth under Note 12, Commitments and Contingencies in the notes to the unaudited interim condensed consolidated financial statements under the caption “Legal Proceedings” is incorporated herein by reference.
ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors previously disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Company Purchases of Equity Securities
There were no purchases of our common stock by the Company or any “affiliated purchaser” as defined in Rule 10b-18(a)(3) under the Exchange Act, during the three months ended September 30, 2026.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
Rule 10b5-1 Trading Arrangements
From time to time, our officers (as defined in Rule 16a-1(f)) and directors may enter into Rule 10b5-1 or non-Rule 10b5-1 trading arrangements (as each such term is defined in Item 408 of Regulation S-K). Other than as described below, during the quarter ended September 30, 2026, no director or “officer” of the Company (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K:
| Trading Arrangement | ||||||||||||||||||||
| Name and Position | Action | Date | Rule 10b5-1(1) | Non-Rule 10b5-1 | Maximum No. of Shares to be Sold | Expiration Date | ||||||||||||||
| Richard McCathron (Chief Executive Officer) | Adopt | 9/11/2026 | X | — | 150,000(2) | 12/31/2027 | ||||||||||||||
| Guy Zeltser (Chief Financial Officer) | Adopt | 9/15/2026 | X | — | 21,000 | 12/31/2027 | ||||||||||||||
| Laura Boettcher (Chief Operating Officer) | Adopt | 8/17/2026 | X | — | 3,265(3) | 11/30/2027 | ||||||||||||||
(1) Intended to satisfy the affirmative defense of Rule 10b5-1(c).
(2) Represents shares of common stock issuable upon the exercise of outstanding stock options held by Mr. McCathron and the sale of the underlying shares pursuant to the trading arrangement.
(3) In addition to the shares shown in the table, the trading arrangement provides for the sale of up to 18,149 shares of common stock issuable upon the vesting of outstanding RSUs that are expected to vest during the term of the trading arrangement, net of any shares withheld to satisfy applicable tax withholding obligations. The actual number of such shares to be sold is not determinable until each vesting occurs.
41
ITEM 6. EXHIBITS
| Exhibit Number | Description | |||||||
| 3.1 | ||||||||
| 3.2 | ||||||||
| 3.3 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1# | ||||||||
32.2# | ||||||||
101.INS* | Inline XBRL Instance Document - the Instance Document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document* | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document* | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document* | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document* | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document* | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document* | |||||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||
| * | Filed herewith. | |||||||
| # | Exhibits 32.1 and 32.2 are being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section, nor shall such exhibits be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act or the Exchange Act, except as otherwise specifically stated in such filing. | |||||||
42
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized:
| HIPPO HOLDINGS INC. | ||||||||
Date: October 29, 2026 | By: | /s/ Richard McCathron | ||||||
| Name: | Richard McCathron | |||||||
| Title: | Chief Executive Officer | |||||||
(Principal Executive Officer) | ||||||||
Date: October 29, 2026 | By: | /s/ Guy Zeltser | ||||||
| Name: | Guy Zeltser | |||||||
| Title: | Chief Financial Officer | |||||||
(Principal Financial Officer and Principal Accounting Officer) | ||||||||
43
EXHIBIT 31.1
CERTIFICATION PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Richard McCathron, certify that:
1. | I have reviewed this Quarterly Report on Form 10-Q of Hippo Holdings Inc.; | |||||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |||||||
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | |||||||
Date: October 29, 2026 | By: | /s/ Richard McCathron | |||||||||||||||
Richard McCathron | |||||||||||||||||
Chief Executive Officer | |||||||||||||||||
EXHIBIT 31.2
CERTIFICATION PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Guy Zeltser, certify that:
1. | I have reviewed this Quarterly Report on Form 10-Q of Hippo Holdings Inc.; | |||||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |||||||
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | |||||||
Date: October 29, 2026 | By: | /s/ Guy Zeltser | |||||||||||||||
Guy Zeltser | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Hippo Holdings Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard McCathron, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: October 29, 2026
/s/ Richard McCathron | ||||||||
Name: | Richard McCathron | |||||||
Title: | Chief Executive Officer | |||||||
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Hippo Holdings Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Guy Zeltser, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: October 29, 2026
/s/ Guy Zeltser | ||||||||
Name: | Guy Zeltser | |||||||
Title: | Chief Financial Officer | |||||||