Hippo Holdings Q2 adjusted EPS beats on premium growth; raises 2026 outlook

Overview

• US insurance platform's Q2 adjusted EPS beat analyst expectations

• Q2 revenue rose 23% yr/yr, driven by higher net earned premium and investment income

• Company raised 2026 guidance for gross written premium, revenue, and adjusted net income

Outlook

• Hippo Holdings raises 2026 gross written premium guidance to $1.65-$1.7 bln

• Company expects 2026 adjusted net income of $62-$70 mln

• Hippo Holdings sees 2026 combined ratio improving to 99%-101%

Result Drivers

• PREMIUM GROWTH - Gross written premium rose 61% yr/yr, driven by strong growth in Casualty and Commercial Multi-Peril lines

• UNDERWRITING PERFORMANCE - Improved net income was primarily attributed to stronger underwriting and benefits of scale

• EXPENSE DISCIPLINE - Expense ratio improved 8 percentage points due to operating leverage and focus on expense control

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 $43.00, about 44.2% above its July 29 closing price of $29.83

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 50 three months ago

Reuters Recommended Reads

• July 29 - Employers Holdings Q2 adjusted EPS beats estimates on higher yields

• July 29 - Insurer Lemonade Inc's Q2 revenue rises on premium growth

• July 29 - Porch Group Q2 adjusted core profit eases past estimates; annual outlook lifted

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(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.)