Hippo Holdings Inc., a US-based insurer specialising in homeowners cover and data-led underwriting, has entered into a distribution arrangement with Progressive Insurance, enabling Hippo’s policies to be offered through Progressive’s existing sales infrastructure.Through an agreement with Progressive Advantage Agency, Inc., Hippo’s homeowners insurance products have been integrated into HomeQuote Explorer.These products are now accessible online and via Progressive’s in-house agents in eight states: Colorad ...

SAN JOSE, Calif., March 19, 2026 /PRNewswire/ -- Hippo Holdings Inc. (NYSE: HIPO) today announced a strategic distribution relationship with Progressive Insurance that began earlier this year. Under an agreement with Progressive Advantage Agency, Inc., Progressive's in-house agency, Hippo's homeowners insurance products have been added to Progressive's HomeQuote Explorer® and are available both online and through Progressive's in house agents across eight states: Colorado, Georgia, Illinois, Ohio, Pennsylva ...

Core Insights - Hippo Holdings Inc. (NYSE:HIPO) is identified as one of the most oversold insurance stocks, with a price target adjustment from $34 to $33 by Keefe, Bruyette & Woods, while maintaining a Market Perform rating due to potential challenges in growth expectations and pricing trends [1][7]. Financial Performance - For Q4 2025, Hippo reported diluted earnings per share of $0.23 and adjusted diluted EPS of $0.67, resulting in a quarterly net profit of $6 million, a significant turnaround from a $41 million net loss in 2024 [2]. - The total net income for the entire year 2025 reached $58 million, showcasing a strong recovery [2]. Premium Growth - The company experienced a 40% year-over-year increase in gross written premiums, reaching $288 million in Q4, driven primarily by growth in Casualty and Commercial Multi-Peril lines [3]. - For the full year, gross written premiums increased by 24%, totaling $1.1 billion [3]. Profitability Metrics - Hippo's net loss ratio improved to 46% in Q4, and the combined ratio enhanced to 99%, indicating better underwriting discipline and reduced catastrophe losses [4]. - The company utilizes data and technology to price risk and manage policies, focusing on homeowners insurance and related services [4].

Investment Portfolio and Market Risks - The company's investment portfolio is primarily exposed to interest rate changes, with significant holdings in debt securities, treasury bills, municipal bonds, and mortgage- and asset-backed securities [248]. - Interest rates increased significantly in 2022 and 2023, which may adversely affect net investment income, particularly for fixed income securities [248]. - The company faces risks related to potential defaults or impairments in its investment portfolio, which could reduce net investment income and result in realized investment losses [249]. - The valuation of investments may be subject to increased uncertainties during illiquid market conditions, affecting the estimated fair value of securities held [250]. - The company’s primary market risk exposures are to changes in interest rates, with significant increases in 2022 and 2023 impacting net investment income [248]. - The company’s investment portfolio is subject to risks of default or impairment, which could reduce net investment income and result in realized investment losses [249]. Compliance and Regulatory Risks - The company received a notice from the NYSE on July 19, 2022, indicating non-compliance with the continued listing standard due to an average closing price of less than $1.00 per share over a consecutive 30-trading day period [257]. - A 1-for-25 reverse stock split was executed on September 29, 2022, to regain compliance with NYSE listing standards [258]. - The company is required to comply with the SEC's rules implementing the Sarbanes-Oxley Act, which includes certifying financial information and maintaining effective internal controls [275]. - The company is required to comply with the Sarbanes-Oxley Act, with independent auditors expected to attest to the effectiveness of internal controls starting in 2026 [275]. - The company may identify material weaknesses in internal controls that could affect compliance with Section 404 of the Sarbanes-Oxley Act, impacting investor confidence and stock price [276]. - Changes in legal interpretations or regulations could adversely affect the company's financial condition and results of operations, particularly regarding loss limitations and exclusions in insurance policies [254]. - The company anticipates that compliance with public company reporting requirements will increase legal and financial compliance costs, although specific estimates are currently unavailable [283]. Dividend Policy and Restrictions - The company does not currently expect to pay any cash dividends on its common stock for the foreseeable future, intending to retain future earnings for business operations and expansion [280]. - Payments of dividends by the company's insurance subsidiaries are restricted by state insurance laws, which impose minimum solvency and liquidity thresholds [278]. - The company’s ability to pay dividends is dependent on the earnings and distributions from its subsidiaries, which may be restricted by future credit agreements or debt securities [281]. - Dividend payments by the company's insurance subsidiaries are restricted by state insurance laws, which include solvency and liquidity thresholds based on statutory accounting principles [278]. - Extraordinary dividends are defined as those exceeding the greater of 10% of the insurer's surplus or net income for the preceding 12 months, requiring prior notice to regulators [278]. Management and Operational Risks - The company may face increased legal and financial compliance costs due to the requirements of being a public company, which could strain resources and divert management's attention [282]. - The company’s management team has limited experience managing a publicly traded company, which could adversely affect business operations and financial condition [284]. - Management's limited experience with public company operations may divert attention from day-to-day business management, potentially affecting financial performance [284][285]. Stock Price Volatility and Market Reactions - The market price of the company's common stock may be highly volatile, influenced by factors such as liquidity, financing ability, and market conditions [259]. - The company may face significant risks from adverse market reactions, including potential litigation related to stock price volatility [261]. - Sales of a substantial number of shares by existing stockholders could significantly reduce the market price of the company's common stock, impairing capital-raising efforts [286].

Core Insights - Hippo reported strong premium growth and improved underwriting results, achieving over $1.1 billion in gross written premium (GWP) for 2025, a 24% increase year-over-year [2][4][6] - The company aims for GWP of $1.4 to $1.5 billion in 2026, reflecting a growth rate of 27% to 36% [5][23] - Hippo's strategic focus includes diversification across personal and commercial lines, technology-driven market expansion, and risk management optimization [14] Financial Performance - In Q4 2025, GWP rose 40% year-over-year to $288 million, while full-year GWP increased to over $1.1 billion [2][4] - Net written premium (NWP) grew 23% year-over-year in Q4 to $97 million, totaling $422 million for the full year [6] - The company achieved a net income of $58 million for 2025, a significant improvement from the previous year [4][12] Underwriting and Profitability - Hippo returned to GAAP profitability with a combined ratio improvement of 25 percentage points, reaching 113% for the full year [4][9] - The net loss ratio improved by 17 points to 60% for 2025, with a notable 11-point improvement in the non-catastrophe loss ratio [9][21] - The fourth-quarter net expense ratio increased to 53.5%, attributed to the sale of the home builder distribution network [8] Business Mix and Growth Drivers - The homeowners segment accounted for 34% of GWP in 2025, down from 47% in 2024, while commercial multi-peril GWP rose 75% year-over-year [1][6] - Casualty and commercial multi-peril lines each represent approximately 24% of GWP, with casualty GWP increasing by 169% in Q4 [6][16] - The company expects the homeowners business to return to growth in 2026, supported by strategic retooling and improved profitability [15][18] Future Guidance - Management reiterated ambitious targets for 2028, including over $2 billion in GWP and $125 million in adjusted net income [3][5] - For 2026, adjusted net income is projected to be between $45 million and $55 million, compared to $18 million in 2025 [25] - The company anticipates a net combined ratio improvement to 103% to 105% in 2026, driven by operational scalability [24]

Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to significantly enhance customer experiences across the company [1] - Elon Musk predicts that by 2040, humanoid robots could create a market worth $250 trillion, representing a major shift in the global economy driven by AI innovation [2][3] - Major firms like PwC and McKinsey acknowledge the multi-trillion-dollar potential of AI, suggesting a broad consensus on its economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is redefining work, learning, and creativity, leading to increased interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, with its technology posing a threat to competitors [4][6] - Prominent figures in technology and investment, including Bill Gates and Warren Buffett, recognize AI as a significant advancement with the potential for substantial social benefits [8] Market Dynamics - The AI ecosystem is expected to reshape operations for businesses, governments, and consumers globally, indicating a shift in market dynamics [2] - The enthusiasm for AI is reflected in the investments and partnerships being formed, such as Oracle's collaboration with Cohere to integrate generative AI into its offerings [8]

Financial Data and Key Metrics Changes - Hippo generated over $1.1 billion of Gross Written Premium for the first time, an increase of 24% year-over-year [5] - Net Written Premium for the year was $422 million, up 13% [5] - Net Income for the year was $58 million, reflecting a significant improvement [18] - Q4 Gross Written Premium grew 40% year-over-year to $288 million [13] - Q4 Adjusted Net Income grew 20% year-over-year to $18 million [18] Business Line Data and Key Metrics Changes - Homeowners business wrote $379 million of Gross Written Premium, down approximately 10% from the prior year [7] - Renters business produced $175 million Gross Written Premium for the year, a 19% increase year-over-year [8] - Commercial multi-peril delivered $265 million of Gross Written Premium, increasing 75% over 2024 [9] - Casualty business grew 92% to $264 million of Gross Written Premium [9] Market Data and Key Metrics Changes - Homeowners accounted for 34% of Gross Written Premium in 2025, down from 47% in 2024, indicating ongoing portfolio diversification [14] - Casualty and Commercial multi-peril each accounted for 24% of 2025 Gross Written Premium [13] Company Strategy and Development Direction - Hippo's strategy focuses on three pillars: Strategic Diversification, Unlocking Market Growth, and Optimized for Risk Management [6] - The company aims to achieve over $2 billion in Gross Written Premium and $125 million in Adjusted Net Income by 2028 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and exceeding 2028 targets, with expectations for continued growth in newer lines of business [20] - The Homeowners business is expected to return to growth in 2026, driven by strategic partnerships and improved product offerings [21] Other Important Information - The Net Combined Ratio improved by 25 percentage points to 113% compared to 2024 [17] - Total Hippo shareholders' equity at the end of the quarter was $436 million, up 17% from the previous year [19] Q&A Session Summary Question: About the relaunch of the Homeowners book outside of Builders - Management discussed a thoughtful go-to-market strategy, emphasizing improved product terms and conditions, and plans to expand partnerships [24][25] Question: Insights on the casualty business growth - Management detailed the diverse portfolio underlying the casualty business, including cyber insurance and commercial GL, and discussed plans to increase retention thoughtfully [26][27][29] Question: Reserve development in the quarter - Management indicated that reserve development was primarily driven by one large liability claim in the Homeowners business, but overall reserve outlook remains positive [33][34] Question: Expected renewal premium increases in Homeowners - Management expects premium changes to continue in 2026, trending faster than loss costs, while maintaining rate adequacy [35][36][38]

Financial Data and Key Metrics Changes - Hippo generated over $1.1 billion in Gross Written Premium for the first time, an increase of 24% year-over-year [5] - Net Written Premium for the year was $422 million, up 13% [5] - Net Income for the year reached $58 million, reflecting a significant improvement [19] - The Net Combined Ratio improved by 25 percentage points to 113% compared to 2024 [18] Business Line Data and Key Metrics Changes - Homeowners business wrote $379 million in Gross Written Premium, down approximately 10% from the prior year [7] - Renters business produced $175 million in Gross Written Premium, a 19% increase year-over-year [8] - Commercial multi-peril business grew 75% over 2024 to $265 million in Gross Written Premium [9] - Casualty business increased 92% to $264 million in Gross Written Premium [9] Market Data and Key Metrics Changes - Homeowners accounted for 34% of Gross Written Premium in 2025, down from 47% in 2024, indicating ongoing portfolio diversification [15] - Casualty and commercial multi-peril lines accounted for 24% each of the 2025 Gross Written Premium [14] Company Strategy and Development Direction - The company aims to achieve over $2 billion in Gross Written Premium by 2028, with a focus on strategic diversification and optimized risk management [6] - The strategy includes broadening the premium base across personal and commercial lines to build a more balanced portfolio [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and exceeding 2028 targets, citing positive momentum entering 2026 [6] - The homeowners business is expected to return to growth in 2026, driven by new partnerships and improved product offerings [7][21] Other Important Information - The company expects Gross Written Premium to grow between 27% and 36% in 2026, reaching $1.4 billion to $1.5 billion [21] - Adjusted Net Income is projected to be between $45 million and $55 million in 2026, compared to $18 million in 2025 [22] Q&A Session Summary Question: Can you discuss the relaunch of the homeowners book outside of Builders? - Management highlighted a thoughtful go-to-market strategy with improved product terms and conditions, aiming for competitiveness and profitability [24][25] Question: What drives the growth in the casualty business? - The casualty business includes diverse exposures such as cyber insurance and commercial GL, with a focus on maintaining low risk participation [26][27] Question: What drove the reserve development in the quarter? - A large liability claim in the homeowners business impacted reserves, but overall reserve development for the year was positive [32][33] Question: How do you expect renewal premium increases in homeowners to trend? - Management anticipates premium increases in 2026 to continue, albeit at a lower rate than the 15% achieved in 2025, while remaining ahead of loss costs [34][35]

Financial Data and Key Metrics Changes - Hippo generated over $1.1 billion in Gross Written Premium for the first time, an increase of 24% year-over-year [5] - Net Written Premium for the year was $422 million, up 13% [5] - Net Income for the year was $58 million, reflecting a significant improvement [19] - Adjusted Net Income for Q4 grew 20% year-over-year to $18 million [19] - Total shareholders' equity at the end of the quarter was $436 million, up 17% from the previous year [20] Business Line Data and Key Metrics Changes - Homeowners business wrote $379 million in gross written premium, down approximately 10% from the prior year [7] - Renters business produced $175 million in gross written premium, a 19% increase year-over-year [8] - Commercial multi-peril gross written premium increased 75% over 2024 to $265 million [9] - Casualty business grew 92% to $264 million in gross written premium [9] - Homeowners accounted for 34% of gross written premium, down from 47% in 2024 [15] Market Data and Key Metrics Changes - Casualty accounted for 24% of 2025 Gross Written Premium, reflecting strong growth [14] - Commercial multi-peril also accounted for 24% of 2025 Gross Written Premium [14] - Homeowners business saw a decline in market share, indicating a shift in portfolio diversification [15] Company Strategy and Development Direction - Hippo aims to achieve over $2 billion in Gross Written Premium by 2028, with a focus on strategic diversification and optimized risk management [6] - The company is expanding its premium base across personal and commercial lines to build a more balanced portfolio [6] - The relaunch of the homeowners product line is being approached thoughtfully, with a focus on profitability and competitiveness [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and exceeding 2028 targets, citing positive momentum entering 2026 [6] - The competitive environment in homeowners is acknowledged, with a focus on improving product offerings and partnerships [24] - Management expects the homeowners business to return to growth in 2026, driven by strategic partnerships and improved product terms [25] Other Important Information - The company is leveraging its diversified portfolio and risk management capabilities to optimize performance across market cycles [6] - The net Combined Ratio improved by 25 percentage points to 113% for the full year [18] Q&A Session Summary Question: Can you discuss the relaunch of the homeowners book outside of Builders? - Management highlighted a thoughtful go-to-market strategy, focusing on profitability and competitiveness, with plans to expand partnerships and distribution [24][25] Question: What drives the growth in the casualty business? - The casualty business includes diverse exposures such as cyber insurance and commercial GL, with a focus on maintaining low risk participation [26][28] Question: What drove the reserve development in the quarter? - A large liability claim in the homeowners business impacted reserves, but overall reserve development for the year was positive [33][34] Question: How do you expect renewal premium increases in homeowners to trend? - Management expects premium increases to continue, albeit at a lower rate than the 15% achieved in 2025, while remaining ahead of loss costs [35][37]

4th Quarter 2025 Financial Results February 25th, 2026 Disclaimers Forward-looking Statements Safe Harbor Certain statements included in this presentation 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. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan, ...