Hippo Q2 Loss Narrows, Premium Hits $410M, Sees Profit Path

Hippo Holdings reported a narrower loss and higher premiums in the second quarter, with the insurtech company pointing to improving loss ratios and a path to profitability by late 2027.

Total Generated Premium rose 15% to $410 million, CEO Rick McCathron said on the earnings call. Gross Loss Ratio improved to 65% from 72% a year earlier, while Net Loss Ratio fell to 72% from 80%. The company posted an Adjusted EBITDA loss of $12 million, compared with an $18 million loss in the same quarter last year. Net loss came in at $15 million, down from $22 million.

McCathron attributed the improvement to a combination of pricing discipline, tighter underwriting and a shift toward more profitable risk segments. He said the company is “seeing the underwriting changes we made over the past two years take hold.”

For the third quarter, Hippo expects Total Generated Premium of $430 million to $450 million and an Adjusted EBITDA loss of $15 million to $20 million. The company reiterated its target of reaching profitability in the second half of 2027.

CFO Guy Zeltser said the company’s expense ratio improved to 38% from 42% a year ago, helped by lower customer acquisition costs and a more efficient claims operation. He also noted that Hippo ended the quarter with $310 million in cash and investments.

Analysts on the call pressed for more detail on the loss ratio trajectory, particularly whether the gross loss ratio can sustain its current level through the peak hurricane season. McCathron said the company’s reinsurance program and geographic diversification provide a buffer, but he avoided making a specific forecast.

The stock rose 4% in after-hours trading following the release. The results come as the broader insurtech sector faces pressure from rising catastrophe losses and higher reinsurance costs, though Hippo’s loss ratio improvements suggest its underwriting changes are gaining traction.