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- **Record Growth**: 33% YoY GWP to $311M, 100% combined ratio.
- **Disciplined Underwriting**: 48% loss ratio (vs. 73% YoY), 63-64% 2025 guidance.
- **New Lines Success**: Casualty 25% of GWP, renters retention 45%.
- **2025 Outlook**: $1.1B GWP, $57M net income, 64% loss ratio.
- **2028 Vision**: $2B GWP with 40% homeowners, 30% commercial, 30% casualty.
- **Westwood Impact**: 3-6 month lag, material 2026+.
- **Talent Expansion**: New data chief, 2 board members added.


**【CEO Opening Remarks】**
- Q3 2025 Results: Adjusted net income of $18 million, 33% year-over-year (YoY) growth in gross written premium (GWP) to $311 million.
- Strategic Shift: Transitioned to a unified carrier platform, reporting by line of business (LOB) instead of segments.
- Portfolio Diversification: Casualty and commercial multi-peril now 46% of GWP vs. 27% historical homeowners.
- Key Initiatives:
  - Westwood partnership: First policies bound, 3-6 month lag to volume.
  - New programs: 6 added, total 36, expanding commercial and casualty risk retention.
  - Talent: New Chief Data Officer and 2 board members added.

**【CFO Financial Commentary】**
- **Topline Growth**: 
  - GWP: $311M (+33% YoY), net written premium $118M (+30% YoY).
  - Casualty: 25% of GWP vs. 14% last year; commercial multi-peril 21% vs. 13%.
  - Renters retention up to 45% vs. 16% YoY.
- **Underwriting Performance**: 
  - Consolidated net loss ratio 48% (vs. 73% YoY), non-cat loss ratio 48% (vs. 50% YoY).
  - Combined ratio 100% (vs. 128% YoY).
- **Financials**: 
  - Net income $98M ($3.77/share) vs. $1M YoY.
  - Adjusted net income $18M ($0.70/share) vs. $1M YoY.
  - Shareholder equity $422M (+14% YoY).
- **Updated Guidance**: 
  - GWP: $1.09-1.11B (prev $1.05B) vs. $825M prior).
  - Net loss ratio: 63-64% (prev 67-69%).
  - Net income: $53-57M (prev $35-39M).
  - Adjusted net income: $10-14M profit (prev -$0-4M).

**【Q&A Highlights】**
1. **Casualty Growth**: 
  - Rick: Start with fully funded programs, scale risk retention post 6-12 months of data.
  - Guy: Writing cyber, commercial GL, and construction liability.

2. **Homeowners Competition**: 
  - Maintaining 10-15% rate adequacy, no repricing needed.
  - Admitted market softening but Hippo prioritizing new construction focus.

3. **2028 Mix Outlook**: 
  - $2B+ GWP with 40% homeowners, 30% commercial, 30% casualty.
  - 50%+ net written premium outside homeowners.

4. **Buybacks**: 
  - Capital for growth and strategic M&A, not share buybacks.


Hippo Holdings Inc. (HIPO) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HIPO

HIPO fundamentals

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