Hippo Holdings Inc. Q4 FY2026 earnings call

• HIPPO had a strong performance in 2025, generating over $1.1 billion of gross written premium for the first time, an increase of 24%, and net written premium of $422 million, up 13%, with net income of $58 million. • Entering 2026 with positive momentum, it is confident in achieving its 2028 targets of over $2 billion in gross written premium, $125 million of adjusted net income, and an 18% adjusted return on equity. • Strategic pillars: strategic diversification (broadening premium base across personal and commercial lines), unlocking market growth (differentiated technology - driven customer experience), and optimized for risk management (leveraging diversified portfolio and risk management capabilities). • Homeowners: In 2025, it focused on profitability over growth, but HHIP had a 15% average renewal premium increase, and it is expected to grow in 2026 through the Baldwin partnership and relaunch of writing traditional new policies. • Renter's business: Continues to grow with attractive profitability. • Commercial lines: Commercial multi - parallel and casualty showed strong growth; a rigorous diligence process is followed when launching new lines of business with program partners, and claims management is also crucial.

Homeowners: In 2025, it wrote $379 million of gross written premium, a decrease of approximately 10% from the prior year. However, the HHIP business achieved an average renewal premium increase of about 15%, and it is expected to return to growth in 2026. Renter's business: Generated $175 million of gross written premium in 2025, showing a 19% year - over - year increase. Commercial lines: Commercial multi - parallel saw a very strong growth, increasing by 75% over 2024 to $265 million of gross written premium; the casualty business grew by 92% to $264 million of gross written premium at the end of the year. Revenue contribution: Homeowners accounted for 34% of gross written premium in 2025, down from 47% in 2024; renter's accounted for 16%; commercial multi - parallel and casualty each accounted for 24% of the 2025 gross written premium.

• For 2026, gross return premium is expected to grow between 27% and 36% to a range of $1.4 to $1.5 billion. • Net return premium is expected to grow between 19% and 28% to a range of $500 to $540 million. • Net combined ratio is expected to improve between 8 and 10 percentage points to a range of 103 to 105%. • Adjusted net income is expected to be between $45 million and $55 million. Stop with compensation and depreciation and amortization expense is expected to total approximately $41 million in 2026, down from $50 million in 2025.

Q: About the relaunch of the homeowner's book outside of builders, talk about the go - to - market strategy and the competitive environment.

A: Rick said that the product line was retooled over the last two years, including reducing volatility, increasing rates, improving terms and conditions, and launching it thoughtfully in states with strategic partners, and it will be accelerated throughout the year.

Q: About the casualty business, what underlies it and the timeline to increase retention.

A: Rick mentioned that the casualty business is mainly a combination of cyber insurance, commercial GL, etc., for small businesses, with a 3% risk participation in 2025, an average exposure of $300,000, short - tail nature, and expects retention to increase in 2026 but in a selective way.

Q: What drove the reserve development in the quarter.

A: Guy said it was mostly driven by one large liability claim in the homeowners business. In the full year, about $10 million was released, and in Q4, there was adverse development but also positive development from earlier quarters.

Q: Expectation of renewal premium increases in homeowners moving forward.

A: Guy said that a 15% increase in 2025 won't be repeated, but it will still go up due to rates and inflation. Rick added that they are only writing business where the loss ratio is profitable.