Insurance platform Hippo Holdings Q3 revenue beats estimates

Overview

• US insurance platform's Q3 revenue rose 29% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Gross written premium up 60% yr/yr, combined ratio improved to 98.4%

Outlook

• Company raises 2026 gross written premium guidance to $1.7-$1.75 bln from $1.65-$1.7 bln

• Company lifts 2026 revenue forecast to $585-$590 mln from $580-$585 mln

• Hippo now expects 2026 combined ratio of 97%-98%, improved from prior 99%-101% view

Result Drivers

• CASUALTY AND CMP EXPANSION - Co said growth in Casualty and Commercial Multi-Peril lines drove gross written premium increase

• OPERATING LEVERAGE - Co attributed expense ratio improvement to net earned premium growth outpacing expense base growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for Hippo Holdings Inc. is $41.75, about 10.7% above its October 28 closing price of $37.71

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 39 three months ago

Reuters Recommended Reads

• Oct 28 - Heritage Insurance Q3 revenue slightly beats estimates

• Oct 27 - Slide Insurance Q3 revenue, net income rise; lifts FY outlook

• Oct 28 - Markel agrees Enstar ADC with $120 million risk premium, reports 91.9% Q3 combined ratio

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)