HIPO

Hippo Holdings Inc. (HIPO) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Hippo Holdings Inc., strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The earnings estimate of $0.32 per share for the current quarter represents a change of -54.3% from the number reported a year ago. The Zacks Consensus Estimate for Hippo Holdings has increased 12.5% over the last 30 days, as two estimates have gone higher compared to no negative revisions. For the full year, the earnings estimate of $2.46 per share represents a change of +261.8% from the year-ago number. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Hippo Holdings. Over the past month, two estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 58.42%. The promising estimate revisions have helped Hippo Holdings earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Hippo Holdings shares have added 13.4% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hippo Holdings Inc. (HIPO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Root Inc. ROOT posted decent second-quarter 2026 results, with both the top and bottom lines improving year over year. The company witnessed improved in-force premiums and loss ratio.Root is a technology insurance company focusing on the United States personal auto insurance market. It offers automobile and renters insurance products primarily through websites, mobile applications and partnership channels.Shares of ROOT have gained 5.9% in the past three months, outperforming the Zacks S&P 500 composite but underperforming its industry and sector in the same time frame. Image Source: Zacks Investment Research Shares of Lemonade Inc. LMND, its peer, have lost 4.4% in the past three months while those of Hippo Holdings HIPO, another peer, have rallied 17.7% in the same time frame. Root generated $389 million of revenues, up 2% year over year and $44 million of adjusted EBITDA, up 16% year over year.It exited the quarter with 0.484 million policies in force, up 6% year over year. Gross written premium of $340 million declined 2% while gross earned premium of $368 million declined 1% year over year as the company managed growth with discipline in a competitive Direct market.Partnership and independent agent channels represented about 51% of new writings in the quarter, reflecting continued progress and diversifying growth beyond Direct. Net underwriting margin improved 310 basis points year over year to 7.9%, equivalent to a 92.1% net combined ratio, driven primarily by continued expense discipline. Net expense ratio improved 300 basis points year over year to 26.1%, while net loss and LAE ratio was 66%, broadly in line with the prior-year period. Root bought back $20 million of shares under its $75 million share repurchase authorization. The stock is overvalued compared with its industry. It is currently trading at a price-to-book multiple of 2.93, higher than the industry average of 1.52 but lower than the median of 4.44 over the past three years. It has a Value Score of A. Image Source: Zacks Investment Research ROOT shares are more expensive than HIPO but cheaper than LMND. Root represents a differentiated opportunity in the $350 billion U.S. auto insurance market. Its mobile-first platform combines telematics and artificial intelligence to assess actual driving behavior, enabling more accurate underwriting, stronger risk selection and potentially lower loss ratios.The company’s growth strategy centers on geographic expansion, broader distribution and deeper partnerships. Root aims to launch its products nationwide, increase policies in force, and make coverage accessible through direct, independent-agent, and embedded-insurance channels. To strengthen its agency presence, Root has integrated with leading comparative rating platforms, including EZLynx and PL Rating. Its partnership business is also expanding across the automotive and financial-services sectors, while targeted customer-acquisition investments continue to support direct-channel growth.Root’s financial performance has benefited from disciplined expense management, selective marketing and strong underwriting. Its gross loss ratio remains below the long-term target range of 60%–65%, giving the company flexibility to reduce prices selectively without sacrificing profitability. This margin improvement helped Root achieve its first full year of profitability in 2024.Root’s five-part strategy will offer customers the lowest possible prices. It will enable the company to expand into every state, grow the independent-agency channel, scale embedded-insurance partnerships, and apply its AI capabilities to build a more efficient, automated marketing engine. The Zacks Consensus Estimate for 2026 earnings indicates year-over-year improvement but that for 2027 indicates a year-over-year decline. ROOT has a Growth Score of A. Image Source: Zacks Investment Research The consensus estimate for 2026 and 2027 earnings has witnessed no movement in the last 30 days.The consensus estimates for LMND and HIPO’s 2026 and 2027 earnings have witnessed no movement in the last seven days. Improved underwriting via telematics, lower loss ratios, efficient customer acquisition, and scaling profitable policies through data-driven pricing and retention position ROOT for long-term growth. Its VGM Score of A instills confidence.Given its premium valuation and muted analyst sentiment, it is better to adopt a wait-and-see approach for this Zacks Rank #3 (Hold) stock now.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Root, Inc. (ROOT) : Free Stock Analysis Report Lemonade, Inc. (LMND) : Free Stock Analysis Report Hippo Holdings Inc. (HIPO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Lemonade Inc. LMND posted decent second-quarter 2026 results, with both the top and bottom lines improving year over year. Though the top line beat the Zacks Consensus Estimate, the bottom line matched the same. The company witnessed improved in-force premiums and loss ratio.Lemonade offers renters, homeowners, pet, car and life insurance, backed by artificial intelligence and behavioral economics. It operates through full-stack insurance carriers in the United States, the United Kingdom and Europe. Its primary competitive advantage lies in its fully digital operating model.Shares of Lemonade have lost 6.5% in the past three months, outperforming the industry, its sector, as well as the Zacks S&P 500 composite in the same time frame.  LMND shares are trading at a discount to their 52-week high. Image Source: Zacks Investment Research Shares of Root Inc. ROOT and Hippo Holdings HIPO, some other multiline insurers, have rallied 5.6% and 17.7% in the past three months, respectively. Revenues of $294.4 million increased 79% year over year, driven by growth in gross earned premium and higher premium retention rate. In-force premium (IFP) increased 32% year over year to $1.43 billion. Gross earned premium of $332.4 million increased 32% year over year primarily due to an increase in IFP.Total operating expense, excluding net loss and loss adjustment expense, of $182.2 million increased 41% year over year.Adjusted EBITDA loss was $18.7 million, narrower than a loss of $40.9 million in the second quarter of 2025. This improvement was primarily attributable to revenue growth and improved underwriting results, partially offset by the increase in growth spend. Net loss ratio improved 800 basis points to 61%.The bottom line came in at a loss of 56 cents per share, narrower than a loss of 60 cents per share incurred in the year-ago quarter. Adjusted free cash flow was $18.8 million, lower than $25 million in the year-ago quarter. Lemonade expects revenues to be $323-$326 million in the third quarter and $1.214-$1.220 billion in 2026. In-force premium is expected between $1,537 and $1,540 million in the third quarter and $1,632-$1,639 million in 2026.Adjusted EBITDA loss is estimated to be $20 to $23 million in the third quarter and $47 to $51 million in 2026. The stock is overvalued compared with its industry. It is currently trading at a price-to-book multiple of 7.87, higher than the industry average of 3.03 and the median of 4.13 over the past three years. It has a Value Score of F. Image Source: Zacks Investment Research LMND shares are more expensive than ROOT and HIPO. Lemonade is a technology-focused insurer that leverages artificial intelligence, data analytics and automation to improve efficiency and support a scalable, low-cost operating model. Initially concentrated on renters and homeowners insurance, the company has expanded into auto, pet and life coverage, aided by the Metromile acquisition. This broader product portfolio has diversified revenues and reduced dependence on any single insurance line.Its multi-product approach supports cross-selling, strengthens customer lifetime value and creates recurring revenues. Strong retention and customer engagement continue to drive growth, with management projecting revenue increases of 32% for the second quarter and 33% for full-year 2026. Auto insurance remains a key growth engine, supported by additional state launches and higher brand investment.In-force premium reached $1.43 billion in the second quarter, representing the 11th consecutive quarter of accelerating growth. Lemonade’s AI- and automation-led platform enables the company to scale efficiently, supporting management’s long-term target of $10 billion in IFP. From 2027 onward, IFP growth is expected to exceed spending growth, creating meaningful operating leverage.Geographic expansion, particularly for auto insurance, should broaden Lemonade’s addressable market. Following several planned state launches, management expects its auto product to be available to most U.S. drivers by the end of 2027.Lemonade’s reinsurance program transfers a significant share of claims exposure to partners, helping limit earnings volatility. Meanwhile, proprietary AI tools, including AI Maya and AI Jim, streamline underwriting and claims handling, improving efficiency and keeping loss-adjustment expenses relatively low.Profitability is challenged, but the outlook is improving. Margins are expanding, free cash flow has turned positive, and management expects to achieve adjusted EBITDA profitability in the fourth quarter of 2026 and in 2027. The Zacks Consensus Estimate for 2026 and 2027 earnings and revenues indicate year-over-year improvements. LMND has a Growth Score of A. Image Source: Zacks Investment Research However, the consensus estimate for 2026 and 2027 earnings has moved 5 cents and 8 cents south, respectively, in the last seven days. Image Source: Zacks Investment Research The consensus estimates for ROOT’s and HIPO’s 2026 and 2027 earnings witnessed no movement in the last seven days. Lemonade is poised for long-term growth, banking on a combination of technology, automation and expanding product offerings.However, given its premium valuation and muted analyst sentiment, it is better to hold on to this Zacks Rank #3 (Hold) stock now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lemonade, Inc. (LMND) : Free Stock Analysis Report Root, Inc. (ROOT) : Free Stock Analysis Report Hippo Holdings Inc. (HIPO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 8:00 a.m. ET Investor Relations - Charles Sebaski President and Chief Executive Officer - Rick McCathron Chief Financial Officer - Guy Zeltser Operator: Hello, everyone. Thank you for joining us, and welcome to the Hippo Holdings, Inc. Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Charles Sebaski, Investor Relations. Charles, please go ahead. Charles Sebaski: Good morning, and thank you for joining Hippo's Second Quarter 2026 Earnings Call. Earlier today, Hippo issued an earnings release announcing its Q2 results and a financial results presentation, which will be webcast during today's call, both of which are available at investors.hippo.com. Leading today's discussion will be Hippo President and Chief Executive Officer, Rick McCathron; and Chief Financial Officer, Guy Zeltser. Following management's prepared remarks, we will open up the call to questions. Before we begin, we'd like to remind you that our discussion will contain predictions, expectations, forward-looking statements and other information about our business that are based on management's current expectations as of the date of this presentation. Forward-looking statements include, but are not limited to, Hippo's expectations or predictions of financial and business performance and conditions and competitive and industry outlook. Forward-looking statements are subject to risks, uncertainties and other factors that could cause our actual results to differ materially from historical results and/or our forecast, including those set forth in Hippo's Form 10-Q and 10-K. For more information, please refer to the risks and uncertainties and other factors discussed in Hippo's SEC filings, in particular, in the section entitled Risk Factors in our Form 10-Q and 10-K. All cautionary statements are applicable to any forward-looking statements we make whenever they appear. You should carefully consider the risks and uncertainties and other factors discussed in Hippo's SEC filings. Do not place undue reliance on forward-looking statements as Hippo is under no obligation and expressly disclaims any responsibility for updating, offering, or otherwise revising any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. During this conference call, we will also refer to non-GAAP financial measures such as adjusted net income. Our GAAP results and description of our non-GAAP financial measures with full reconciliation to GAAP can be found in the second quarter 2026 earnings release, which has been furnished to the SEC and is available on our website. And with that, I'll turn the call over to Rick McCathron, our President and CEO. Richard McCathron: Thank you, Chuck, and good morning, everyone. Thanks for joining us. Hippo delivered another strong quarter, building on the momentum we started the year with. We grew top and bottom line together, making our fifth straight quarter of profitability on both a stated and adjusted basis. For the quarter, we generated $10 million of net income, a nearly eightfold increase over last year and $21 million of adjusted net income, a 24% increase over second quarter last year. Gross written premium came in at $482 million, up 61% over last year, led by the continued expansion of existing program partners in our casualty and CMP lines of business and a return to growth in our homeowners line. However, what stands out most isn't the growth itself. It's that we grew profitably. Our combined ratio improved 4 percentage points year-over-year to 95.8% and we're at 97.5% year-to-date, a 31 percentage point improvement over the first half of 2025. That combination, growth and underwriting discipline moving in lockstep is the story of the quarter. Let's walk through it in more detail. In homeowners, we wrote $107 million of premium, up 7% over last year. Growth continues to come from our Progressive and Westwood partnerships with admitted growth more than offsetting the pullback in E&S as the market becomes more competitive. Rate remains adequate with mid- to high single-digit renewal rates this quarter, though we expect rate trend to moderate from here, but to keep pace with loss trends. We want this business to grow, but only where we believe there's a high likelihood of profitability. Commercial multi-peril had another strong quarter, up 65% over last year to $138 million, now following casualty as our second largest line on a gross basis and second largest on a net written basis behind homeowners. Retention increased to 37%, impacted by a reinsurance structure change. However, we expect retention to return to more historic levels in the low 20s for the year. Casualty was our fastest-growing line again this quarter with gross written premium up sharply to $180 million, now our largest line on a gross basis, though third on a net basis. That growth continues to be led by one of our longest tenured partners, a program with a multi-decade track record, which is exactly the kind of program we want to drive growth, one we know well. As we said last quarter, we're starting to lean into higher retention in casualty, and this quarter's uptick reflects both a new excess program and a reinsurance change with an existing partner. We expect retention to settle back into the mid-teens from here. We achieved this growth in a competitive market because we believe we've built the program carrier of choice in the MGA space. We now have more than 50 programs, double what we had in the first quarter of last year, and most of that growth is coming from existing partners expanding with us, not just new logos. Our longest tenured partner has been with Hippo for over a decade. We keep investing in the platform, capacity and technology to support that partner program growth such as fully automated monthly data ingestion process, shortening the bordereau integration from new programs by 90% and reflecting back real-time insights to programs. We have continuously been focused on improving our underwriting. And over the last several years, that has included over 200 rate filings and over a 100% aggregate rate increase to HHIP. To support our program underwriting, we now have 2 program managers overseeing every program and 3 on our fastest-growing casualty programs. All of this work shows up in our underwriting results. Core accident year ex-CAT loss ratio came in at 45.8%, an improvement over last year and among our strongest quarter results in recent years and nearly 17 points improvement from Q2 2024. This quarter, we evolved our reinsurance structure in ways we think are significant, both for our partners and for Hippo's own risk appetite, something we've been signaling to investors for some time. We renewed our CAT bond on attractive terms and added wildfire as a named peril. More importantly, we moved to buying catastrophic reinsurance at the corporate group level rather than program by program, which lowered our PMLs by more than 30% across the return periods that matter most to earnings volatility. We also introduced our first whole account quota share across the portfolio, giving us more optionality as we build a track record managing risks at the enterprise level. Put simply, this reduces our volatility, improves our economics and gives our partners more room to grow, and those goals reinforce each other. Scale and expense discipline are doing what we said it would. Our net expense ratio came in at 45.4%, down nearly 26 points from where we started 2024. As operating leverage continues to build during that same period, our fixed expense ratio dropped by 39 points to 29%. AI continues to move from experiment to infrastructure across our business. Hannah, our AI service agent, and Clara, our AI first notice of loss agent, are both live this quarter. And together, they're a big part of why we can grow the top line without growing overhead at the same pace. We've also rolled out Devon, Cognition's AI software engineer, across our tech organization, nearly 1/3 of our roughly 500 employees. Tech is core to Hippo's value proposition, and this is about making our best people even better at building it. Our tech native roots also show up in how fast we move. Our full integration with Westwood and our accelerated launch with Progressive are both proof points, and we believe both have plenty of runway left. We'll keep investing here because we believe a unique and targeted distribution model is an opportunity to further differentiate our business. Given everything this quarter, I want to remind everybody what we told investors at last June's Investor Day that by 2028, we'd reach at least $2 billion of gross written premium. A 22% CAGR through organic growth, new programs, scaling our builder channel and relaunching homeowners outside of builders. So how are we doing against that? Over the last year, we've simultaneously added 14 new programs, completed our Westwood integration, now quoting more than 50 builders and launched our Progressive partnership, accelerating homeowners growth outside the builder channel. Additionally, this quarter, we significantly advanced our business partnerships, which now brings our expected 2027 premium above $2 billion, hitting our prior 2028 goal a year early. That's real progress against all 4 drivers we laid out. Given that momentum, we're raising the bar. Gross written premium to more than $2.5 billion, a 25% increase over our prior target, representing a 32% compounded annual growth rate and adjusted net income of more than $140 million in 2028, doubling our current year 2026 guidance. I'm proud of this quarter and even more excited about where Hippo is heading. We're executing with discipline against our long-term goals and the progress we're seeing gives me real confidence in what's ahead. Now I'll turn it over to our CFO, Guy Zeltser, to walk through the numbers in detail, and then we'll take your questions. Guy? Guy Zeltser: Thanks, Rick, and good morning, everyone. In the second quarter, we once again delivered strong top line premium growth, improved underwriting and increased profitability. Q2 gross written premium grew 61% year-over-year to $482 million, up from $299 million in Q2 of last year. Growth in the second quarter was achieved across all our lines of business with especially strong performance in casualty and commercial multi-peril lines and more modest expansion in renters and homeowners. I will now highlight a few additional details of how diversified our gross written premium has become. Homeowners grew slightly to $107 million and accounted for 22% of the total gross written premium, down from 33% in Q2 of last year. Commercial multi-peril generated $138 million, accounted for 29% of total gross written premium, up from 28% last year. Casualty generated $180 million, representing 37% of total gross written premium, up from 22% last year. Net written premium in Q2 grew 71% year-over-year to $183 million, slightly ahead of the expansion of gross written premium, driven by a program-specific reinsurance change, accounted for $27 million of net written premium this quarter. Consequently, our retention rate in the quarter was 38% compared to 36% last year and is slightly ahead of our full year guide. In general, we view retention levels on a full year basis as timing of program renewal can lead to quarterly variances in that metric. From a mix perspective, homeowners generated $76 million of net written premium in the quarter, representing 42% of total net written premium, down from 59% last year. Commercial multi-peril generated $51 million and accounted for 28% of total net written premium, up from 24% last year. The aforementioned program reinsurance change this quarter drove $21 million of net written premium in this line. For the full year, we would expect retention levels to be in the low 20s. Casualty generated $35 million compared to roughly $2 million in Q2 of last year. As we previously indicated, the increase in casualty retention was intentional and driven mostly by the long-tenured program Rick mentioned earlier. However, the 20% retention rate this quarter was also bolstered by the aforementioned program reinsurance change. So for the full year, we expect the casualty retention level to be in the mid-teens. Revenue in the second quarter was $145 million, up 23% over Q2 of last year. We expect revenue year-over-year growth to accelerate in the second half of the year as the net written premium growth in the quarter is going to earn in. In Q2, our net combined ratio improved 4 percentage points to 95.8% compared to Q2 of last year. This was achieved by improvements in expense ratio and accident year loss ratio, slightly offset by a lower prior accident year reserve benefit in Q2 versus Q2 of last year. Our Q2 net loss ratio increased 3 percentage points year-over-year to 50.4%. Accident year ex-CAT loss ratio improved to 45.8% from 46.4% last year, reflecting our continued focus on underwriting profitability. Generally, we view accident year ex-CAT loss ratios in the mid-40s as excellent results. CAT loss ratio improved 1 percentage point to 6.7% as Q2 this year and last year both experienced relatively light CAT losses. Prior accident year reserve development was 2% in the second quarter compared to roughly 7% in Q2 of last year. In Q2, net expense ratio improved 8 percentage points year-over-year to 45.4%. As Rick mentioned previously, we believe that our continued focus on operating leverage through AI enables us to grow our business while keeping fixed expense largely flat, which in turn has helped driving the expense ratio improvement. Q2 net income came in at $10 million or $0.38 per diluted share, a $9 million improvement year-over-year. The year-over-year improvement was primarily due to the continued improvement of underwriting results and strong premium growth. Q2 adjusted net income grew 24% year-over-year to $21 million or $0.79 per diluted share. Total Hippo stockholders' equity at the end of the quarter was up 4% to $466 million from $449 million at last quarter and up 40% from the $333 million at Q2 of last year. Total book value per share at the end of the quarter was up 2% to $17.65 per share from $17.23 per share at last quarter and up 36% from $13.02 per share at Q2 of last year. Following this quarter's results, we are raising our full year guidance. We're increasing gross written premium from a range of $1.45 billion and $1.525 billion to a range of $1.65 billion and $1.7 billion. We are increasing net written premium from a range of $520 million and $550 million to a range of $565 million and $580 million. We're increasing revenue from a range of $560 million and $570 million to a range of $580 million and $585 million. We are lowering our net combined ratio from a range of 103% and 105%, inclusive of a 13% CAT loss ratio to a range of 99% and 101%, inclusive of a 10% CAT loss ratio. And finally, we're increasing adjusted net income from a range of $48 million and $56 million to a range of $62 million and $70 million, while maintaining the expected impact from stock-based compensation and depreciation and amortization to roughly $42 million. And with that, operator, I would now like to open the floor to questions. Operator: Your first question comes from the line of Randy Binner with Texas Capital. Randy Binner: Hopefully, you're hearing me okay. I had a tough connection there. But I have a question about just the business mix going forward. It was a good result this quarter, but the casualty lines, in particular, were a lot of the premiums. And so is this a function -- you went through retention and growth opportunities in program. But should we think of Hippo as being more like 1/3 or less homeowners longer term? Just I think a lot of people have thought of it as more of a home insurer. Obviously, you've had a lot of success with the programs. But just trying to understand looking out in the future, what the business mix is of this kind of multiline carrier. Richard McCathron: Randy, this is Rick, and we can hear you loud and clear. So I appreciate the question. I think the way everybody should really consider and think about Hippo is it's our objective to build a very diversified portfolio that allows us to optimize mix based on a market cycle and market segment. So for us, as an example, we talked about the E&S market is softer right now, so we can toggle that back while we're growing the admitted market. Homeowners business is looking favorable. So we're growing that with our Westwood and Progressive partnerships on the admitted basis line. But for us to get to a fully diversified portfolio where we have a blended and balanced book, we want to make sure that our commercial multi-peril, our casualty lines gets up to a point where it does create optimal balance for our homeowners line. So we still emphasize the quality of Hippo's home insurance program. We continue to grow that program. We will continue to grow that program. But we want to make sure the portfolio stays in balance over time. So the more we grow homeowners, the more we're going to want to grow casualty to create that balance that I mentioned before. So from an optimal mix perspective, it's very important for us to make sure that we are driving against favorable trends and favorable product lines and favorable market cycles and again, toggling back when the market cycle might be distressed. Randolph Binner: Okay. Understood. And then just a couple of quick follow-ups. When you -- the E&S referenced the market being softer, that is in homeowners, you're seeing softer E&S? Richard McCathron: Yes, correct. Randy Binner: Okay. And that makes sense. And then I guess just for the casualty lines growth, I think a common reaction is that, that's kind of growing in a softer area of the market, but of course, you have a lot of control to your programs. So just maybe like just a little more granularity on kind of like the partnerships, the market opportunity and writing those programs and kind of seeing outsized casualty growth and which broadly is seen as a softer casualty market? Richard McCathron: Yes, Randy, happy to talk about that. I think one thing that is really important to recognize is most of our casualty growth is concentrated in existing known long-tenured programs to us. This is not us going out and chasing new opportunities, chasing rate, chasing growth. If you look at like CMP as an example, we tie that back to we are fast becoming the program carrier of choice. We have 50 programs in that space. We know these programs well. These programs are growing with us. We reviewed in the last 12 to 18 months, approximately 200 programs and selected a relatively small percentage of those as somebody that we want to partner with on a go-forward basis. So from our perspective, it comes through a combination of organic growth with existing long-tenured partners and lack of a better term, cherrypicking new programs that we believe are very well operated and ones that again help us get to that diversified balance that I was talking about. Operator: Your next question comes from the line of Tommy McJoynt with KBW. Thomas Mcjoynt-Griffith: To start off, can you talk a little more about the partnership with Accelerant that you announced in June? I guess the important question that we want to ask is thinking about premiums that are coming through that channel with Accelerant and the economics or the bottom line impact of those premiums, how do they compare with non-Accelerant revenues that are coming through? Just want to understand the difference as we think about modeling those premiums. Richard McCathron: Yes, Tommy, this is Rick. Happy to start, and then Guy can jump in with any other detailed questions. I think first and foremost, the way we view the Accelerant program is a way for us to grow the premium with a partner that has access to a large number of MGA programs. I think we've published that we believe and expect us to be in excess of $500 million next year. But I also think there's more opportunity in that particular space. But we do generally look at each program in great detail before we agree to be the carrier to support Accelerant with that particular program. So again, I'd really like to emphasize today, our growth comes with thoughtful quality, not just growth at all costs. Accelerant gives us an opportunity to look at those programs and then take those programs on and then continue to grow it. We, of course, have our own sourcing of business in the program space outside of Accelerant. And in those, we generally look for things, as I mentioned before, with Randy's question, operators that are very -- have a long track record, high quality, ones that have been in business for quite some time or at least have the expertise in the particular product line space. And then we also go out and hire internally to Hippo experts in both underwriting and claims handling in that particular segment. So we are an additional backstop or an additional vet on the quality of business that comes in, both on a per risk basis, on a claims handling basis and in the aggregate. So this is the way we look at Accelerant for the most part. I think Accelerant continues to grow. Therefore, they need lots of capacity. We're proud to be one of their capacity providers, and it allows us to get views of programs that maybe we normally would not have been able to take a look at. Guy Zeltser: Tommy, this is Guy. Just wanted to also comment on the economics. This is a fairly standard transaction. So when you model the business going forward, in the commission income side specifically, it's very standard to other deals that we're doing. So it should be viewed as a scale-up in line with the growth -- with ceded earned premium. Thomas Mcjoynt-Griffith: Okay. Got it. That all makes sense. And then switching over a question on the property books across homeowners and the commercial side as well. We hear from a lot of competitors that competition in the space is intensifying. You are seeing some rate deceleration there. And some of that, frankly, reflects the lower cost of reinsurance and you guys reported that as well. So can you just talk about the competitive environment and where you see sort of margins heading in the various property books of business that you have? Richard McCathron: Yes. I think this is one of the -- Tommy, I think this is one of the real benefits of our platform because we do write across multiple product lines and multiple perils barrels, we're not in the business of chasing risk and chasing growth in a softening market. I agree with your sentiment that the homeowners market is absolutely softening right now, which is one of the reasons why you're seeing an uptick on the commercial and casualty sides of our business. But we do believe we have so much room to grow in the property space, both in our own homeowners program and some of the MGAs that we support that we think that our growth won't slow into the soft market, again, because we are relatively small compared to the industry in that particular space. However, what we will commit to is that if we find ourselves in a position where we do not believe that growth in any particular product line will be accretive to our bottom line and to our combined ratio, we won't grow in that space. And so that's, again, the force of what we've built here is those levers for us to pull across cycle, across product line and across programs and both owned and non-owned business. Guy Zeltser: Tommy, this is Guy again. I just wanted to also add 2 points on top of what Rick just mentioned. So on the homeowner side, one of the reasons why we love the partnership with Progressive is that it gives us access to a lot of lead generation, a lot of flow. We're right now live with Progressive at 8 states, but we do plan to triple the state footprint by the end of this year, and that is giving us even more volume. And the influx of volume allows us to still be very, very disciplined and only binding businesses we feel very good about from a profitability perspective. And the second thing, you also asked about property within the CMP line. We also see the same trend. So even though the CMP is growing, we do see with commercial property specifically some softening, which is why we're pulling back, which is why the growth you're seeing is actually coming from other lines. So it's the same thing that Rick has mentioned, where we are seeing softness, we have no problem of pulling back. And the most important thing, again, is to be disciplined across each and every line. Richard McCathron: Yes, Tommy, one thing I'll add to what Guy had just mentioned is the growth that we are experiencing in Progressive, we only expose a rate to Progressive customers for particular business that we want to write, both from a geographical basis, but also from an inherent underlying per policy basis. So we do not expose a price or a Hippo quote on any customer of Progressives that doesn't fit into our desired footprint and our desired underwriting box. Operator: Your next question comes from the line of Andrew Andersen with Jefferies. Sidney Schultz: This is Sid on for Andrew. Curious if you could expand on why right now was the -- why now is the right time to add the whole account quota share and what economics made the transaction attractive? And then I know you touched on casualty and CMP, but should we expect any change in the retention in homeowners moving forward? Richard McCathron: This is Rick. Thanks for the question. I'll go ahead and start with this one. The whole account quota share is more of a capability. The amount of our risk ceded in our whole account quota share is very, very small. But what it does is it creates a capability that as we continue to grow over time, again, another lever for us to pull to put more risk to third-party reinsurers if we feel like it's the best way to stick within our risk tolerance framework. And so for us, it's more of a capability. I don't think it meaningfully impacts the economics of the business, certainly not at the size of business that we're placing through it, but it's a capability that we thought it was important for us to have as we experience continued growth throughout. Sid, remind me what was your second question? Sidney Schultz: Yes. Just curious if -- I know you guys had touched on casualty and CMP retention, but if we should expect any changes in the homeowners retention moving forward? Richard McCathron: Yes, that's right. Thank you, Sid. First of all, for the Hippo home insurance program from an attritional loss perspective and even at the lower levels of CAT, we, for all intents and purposes, maintain near 100% of that risk. So there's really nowhere to go up with that because we're already taking most of it. For our program partners in the property space, we do participate in a sizable amount of risk. It ranges between 20% with some partner programs and up to 40% with others. We think our risk acceptance and our retention for property is right where we want it to be. So we would not expect it to increase in the foreseeable future. Guy Zeltser: Sid, this is Guy here. The only thing I would add is from -- if you just look at the homeowners line, you can tell that we -- you can see that we have provided the mix between the admitted and non-admitted, and as Rick mentioned, because we are retaining more on the admitted side, and that's the piece that is growing faster, you should expect a bit of an uptick in the overall retention of that line. But not -- I would say, not significantly above what you're seeing right now. But for every intents and purpose, I think you can triangulate the almost 100% retention on the attritional side on the admitted side of the business. And then the rest will just be a plug number. Sidney Schultz: Okay. And then just as a follow-up, I'm curious to hear if you're seeing any competitive changes on fronting fees or economics as more capital enters the MGA and fronting markets or maybe you're seeing the opposite occur? Richard McCathron: Yes, it's a really good question. I think for the most part, we are not seeing changes in that because despite what I think a lot of people believe, the fronting business is not a commodity business. And I think you're seeing that by the amount of deals that we are winning. We are not winning based on decreasing fronting fees or economics back to the MGA. We are winning on more capabilities we can provide to the MGA, both in the form of services, in the form of data, data insights, the ability to share some of the technologies that we've been building from an AI perspective. So when programs are coming to a fronting carrier, they generally fall into 1 of 2 buckets. The bucket where the program will take any carrier at the lowest price or the lowest cede commission, we don't play in that game. The other bucket is those that say we want a long-term partner that has enough capital to support our growth, can retain risk, can provide other valuable services and capabilities far beyond just access to the balance sheet and to the rating. I'll also reinforce we had a size increase last quarter. So now we're able at our AM Best A- IX, we're able to really participate in even more opportunities than we were previously. Operator: Your next question comes from the line of Timothy D'Agostino with B. Riley Securities. Timothy D'Agostino: Just one question on my end. On the 2028 growth targets on Slide 14, seem to emphasize potential new lines. I was just kind of just wondering, for Hippo entering new lines, is that really a 2028 idea? Or could we see that in 2027? And then could you just kind of remind us of the game plan when entering those new lines? Richard McCathron: Yes, Tim, this is Rick. I'm assuming your question is around Hippo entering new lines on a manufactured basis of products we manufacture as opposed to products that we front for. So I'll answer both questions. First of all, for products that we manufacture, I would expect us to enter into either new lines or new flavors of lines before the 2028 target. By flavors, I mean, new things that we might be doing within the personal homeowners or property space and other things that might be tangential to that particular space. So we're not ready at this point to share what those are. But I think in future quarters prior to 2028, we'll be able to share a lot more in detail. But we do want to grow the owned premium side and the owned product side. On the fronting business, we will enter new lines if we believe those lines are diversifying to the business that we already have. Just as a reminder, Hippo has lots of different carriers within its Spinnaker Insurance Group both admitted and non-admitted. We have lots of certificates of authority, not just property and casualty, but also with accident health. There are opportunities that come to us every day, and we go through a fairly detailed analysis of every opportunity to determine, is this accretive to that diversification goal? And will that individual program positively impact the bottom line of the business. So although I can't give you specifics of what those might be at this point, I can tell you that we are looking at other opportunities that meet those strategic goals of ours. Operator: We have reached the end of the Q&A session. I will now turn the call back to management for closing remarks. Richard McCathron: Well, I appreciate all of you joining us this morning. We're excited about the quarter that we've had and even more so about the future. So we look forward to speaking with you again next quarter. Thank you, everyone. Operator: This concludes our call. Thank you for attending. You may now disconnect. Before you buy stock in Hippo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hippo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a fifth consecutive quarter of profitability, driven by a 61% increase in gross written premium and a 4-percentage-point improvement in the combined ratio to 95.8%. Strategic shift toward a diversified portfolio resulted in casualty becoming the largest line by gross written premium, reducing reliance on homeowners from 33% to 22% of the total mix. Growth is primarily fueled by existing long-tenured program partners expanding their relationship rather than just new acquisitions, with the program count doubling to over 50 since Q1 2025. Operational efficiency improved significantly through AI infrastructure, including automated data ingestion that shortened program integration timelines by 90%. Underwriting discipline was maintained through over 200 rate filings and a 100% aggregate rate increase to the Hippo Home Insurance Program (HHIP) over recent years. Management evolved the reinsurance strategy to a corporate group level, reducing Probable Maximum Loss (PML) by over 30% across key return periods to mitigate earnings volatility. Pulled forward the 2028 goal of $2 billion in gross written premium to 2027, citing strong momentum in the builder channel and the Progressive partnership. Raised 2028 long-term targets to over $2.5 billion in gross written premium and more than $140 million in adjusted net income, representing a 32% CAGR. Expects homeowners rate trends to moderate from current mid-to-high single digits but remain adequate to keep pace with loss trends. Anticipates retention levels for commercial multi-peril to return to historic levels in the low 20s, while casualty retention is expected to settle in the mid-teens. Plans to triple the state footprint for the Progressive partnership by the end of 2026 to increase lead generation and volume flow. Introduced the first whole account quota share across the portfolio to create a scalable capability for ceding risk to third-party reinsurers as the enterprise grows. Renewed the catastrophe bond with attractive terms, specifically adding wildfire as a named peril to the coverage. Noted a strategic pullback in E&S (Excess and Surplus) homeowners and commercial property lines due to intensifying market competition and softening rates. A program-specific reinsurance change drove a temporary uptick in retention rates this quarter, which management expects to normalize in future periods. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that casualty growth is concentrated in long-tenured, known programs rather than chasing new, risky market opportunities. The company uses casualty expansion as a deliberate tool to balance the portfolio against property-heavy cycles. The partnership provides access to a large volume of MGA programs, with expected premiums exceeding $500 million next year. Economics are described as standard for the industry, with commission income scaling in line with ceded earned premium growth. Hippo avoids 'commodity' fronting deals based solely on low fees, instead competing on technology services and data insights provided to MGAs. The recent AM Best rating upgrade to A- IX has expanded the company's ability to participate in larger program opportunities.

Image source: The Motley Fool. Thursday, July 30, 2026 at 8:00 a.m. ET Investor Relations - Charles Sebaski President and Chief Executive Officer - Rick McCathron Chief Financial Officer - Guy Zeltser Operator: Hello, everyone. Thank you for joining us, and welcome to the Hippo Holdings, Inc. Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Charles Sebaski, Investor Relations. Charles, please go ahead. Charles Sebaski: Good morning, and thank you for joining Hippo's Second Quarter 2026 Earnings Call. Earlier today, Hippo issued an earnings release announcing its Q2 results and a financial results presentation, which will be webcast during today's call, both of which are available at investors.hippo.com. Leading today's discussion will be Hippo President and Chief Executive Officer, Rick McCathron; and Chief Financial Officer, Guy Zeltser. Following management's prepared remarks, we will open up the call to questions. Before we begin, we'd like to remind you that our discussion will contain predictions, expectations, forward-looking statements and other information about our business that are based on management's current expectations as of the date of this presentation. Forward-looking statements include, but are not limited to, Hippo's expectations or predictions of financial and business performance and conditions and competitive and industry outlook. Forward-looking statements are subject to risks, uncertainties and other factors that could cause our actual results to differ materially from historical results and/or our forecast, including those set forth in Hippo's Form 10-Q and 10-K. For more information, please refer to the risks and uncertainties and other factors discussed in Hippo's SEC filings, in particular, in the section entitled Risk Factors in our Form 10-Q and 10-K. All cautionary statements are applicable to any forward-looking statements we make whenever they appear. You should carefully consider the risks and uncertainties and other factors discussed in Hippo's SEC filings. Do not place undue reliance on forward-looking statements as Hippo is under no obligation and expressly disclaims any responsibility for updating, offering, or otherwise revising any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. During this conference call, we will also refer to non-GAAP financial measures such as adjusted net income. Our GAAP results and description of our non-GAAP financial measures with full reconciliation to GAAP can be found in the second quarter 2026 earnings release, which has been furnished to the SEC and is available on our website. And with that, I'll turn the call over to Rick McCathron, our President and CEO. Richard McCathron: Thank you, Chuck, and good morning, everyone. Thanks for joining us. Hippo delivered another strong quarter, building on the momentum we started the year with. We grew top and bottom line together, making our fifth straight quarter of profitability on both a stated and adjusted basis. For the quarter, we generated $10 million of net income, a nearly eightfold increase over last year and $21 million of adjusted net income, a 24% increase over second quarter last year. Gross written premium came in at $482 million, up 61% over last year, led by the continued expansion of existing program partners in our casualty and CMP lines of business and a return to growth in our homeowners line. However, what stands out most isn't the growth itself. It's that we grew profitably. Our combined ratio improved 4 percentage points year-over-year to 95.8% and we're at 97.5% year-to-date, a 31 percentage point improvement over the first half of 2025. That combination, growth and underwriting discipline moving in lockstep is the story of the quarter. Let's walk through it in more detail. In homeowners, we wrote $107 million of premium, up 7% over last year. Growth continues to come from our Progressive and Westwood partnerships with admitted growth more than offsetting the pullback in E&S as the market becomes more competitive. Rate remains adequate with mid- to high single-digit renewal rates this quarter, though we expect rate trend to moderate from here, but to keep pace with loss trends. We want this business to grow, but only where we believe there's a high likelihood of profitability. Commercial multi-peril had another strong quarter, up 65% over last year to $138 million, now following casualty as our second largest line on a gross basis and second largest on a net written basis behind homeowners. Retention increased to 37%, impacted by a reinsurance structure change. However, we expect retention to return to more historic levels in the low 20s for the year. Casualty was our fastest-growing line again this quarter with gross written premium up sharply to $180 million, now our largest line on a gross basis, though third on a net basis. That growth continues to be led by one of our longest tenured partners, a program with a multi-decade track record, which is exactly the kind of program we want to drive growth, one we know well. As we said last quarter, we're starting to lean into higher retention in casualty, and this quarter's uptick reflects both a new excess program and a reinsurance change with an existing partner. We expect retention to settle back into the mid-teens from here. We achieved this growth in a competitive market because we believe we've built the program carrier of choice in the MGA space. We now have more than 50 programs, double what we had in the first quarter of last year, and most of that growth is coming from existing partners expanding with us, not just new logos. Our longest tenured partner has been with Hippo for over a decade. We keep investing in the platform, capacity and technology to support that partner program growth such as fully automated monthly data ingestion process, shortening the bordereau integration from new programs by 90% and reflecting back real-time insights to programs. We have continuously been focused on improving our underwriting. And over the last several years, that has included over 200 rate filings and over a 100% aggregate rate increase to HHIP. To support our program underwriting, we now have 2 program managers overseeing every program and 3 on our fastest-growing casualty programs. All of this work shows up in our underwriting results. Core accident year ex-CAT loss ratio came in at 45.8%, an improvement over last year and among our strongest quarter results in recent years and nearly 17 points improvement from Q2 2024. This quarter, we evolved our reinsurance structure in ways we think are significant, both for our partners and for Hippo's own risk appetite, something we've been signaling to investors for some time. We renewed our CAT bond on attractive terms and added wildfire as a named peril. More importantly, we moved to buying catastrophic reinsurance at the corporate group level rather than program by program, which lowered our PMLs by more than 30% across the return periods that matter most to earnings volatility. We also introduced our first whole account quota share across the portfolio, giving us more optionality as we build a track record managing risks at the enterprise level. Put simply, this reduces our volatility, improves our economics and gives our partners more room to grow, and those goals reinforce each other. Scale and expense discipline are doing what we said it would. Our net expense ratio came in at 45.4%, down nearly 26 points from where we started 2024. As operating leverage continues to build during that same period, our fixed expense ratio dropped by 39 points to 29%. AI continues to move from experiment to infrastructure across our business. Hannah, our AI service agent, and Clara, our AI first notice of loss agent, are both live this quarter. And together, they're a big part of why we can grow the top line without growing overhead at the same pace. We've also rolled out Devon, Cognition's AI software engineer, across our tech organization, nearly 1/3 of our roughly 500 employees. Tech is core to Hippo's value proposition, and this is about making our best people even better at building it. Our tech native roots also show up in how fast we move. Our full integration with Westwood and our accelerated launch with Progressive are both proof points, and we believe both have plenty of runway left. We'll keep investing here because we believe a unique and targeted distribution model is an opportunity to further differentiate our business. Given everything this quarter, I want to remind everybody what we told investors at last June's Investor Day that by 2028, we'd reach at least $2 billion of gross written premium. A 22% CAGR through organic growth, new programs, scaling our builder channel and relaunching homeowners outside of builders. So how are we doing against that? Over the last year, we've simultaneously added 14 new programs, completed our Westwood integration, now quoting more than 50 builders and launched our Progressive partnership, accelerating homeowners growth outside the builder channel. Additionally, this quarter, we significantly advanced our business partnerships, which now brings our expected 2027 premium above $2 billion, hitting our prior 2028 goal a year early. That's real progress against all 4 drivers we laid out. Given that momentum, we're raising the bar. Gross written premium to more than $2.5 billion, a 25% increase over our prior target, representing a 32% compounded annual growth rate and adjusted net income of more than $140 million in 2028, doubling our current year 2026 guidance. I'm proud of this quarter and even more excited about where Hippo is heading. We're executing with discipline against our long-term goals and the progress we're seeing gives me real confidence in what's ahead. Now I'll turn it over to our CFO, Guy Zeltser, to walk through the numbers in detail, and then we'll take your questions. Guy? Guy Zeltser: Thanks, Rick, and good morning, everyone. In the second quarter, we once again delivered strong top line premium growth, improved underwriting and increased profitability. Q2 gross written premium grew 61% year-over-year to $482 million, up from $299 million in Q2 of last year. Growth in the second quarter was achieved across all our lines of business with especially strong performance in casualty and commercial multi-peril lines and more modest expansion in renters and homeowners. I will now highlight a few additional details of how diversified our gross written premium has become. Homeowners grew slightly to $107 million and accounted for 22% of the total gross written premium, down from 33% in Q2 of last year. Commercial multi-peril generated $138 million, accounted for 29% of total gross written premium, up from 28% last year. Casualty generated $180 million, representing 37% of total gross written premium, up from 22% last year. Net written premium in Q2 grew 71% year-over-year to $183 million, slightly ahead of the expansion of gross written premium, driven by a program-specific reinsurance change, accounted for $27 million of net written premium this quarter. Consequently, our retention rate in the quarter was 38% compared to 36% last year and is slightly ahead of our full year guide. In general, we view retention levels on a full year basis as timing of program renewal can lead to quarterly variances in that metric. From a mix perspective, homeowners generated $76 million of net written premium in the quarter, representing 42% of total net written premium, down from 59% last year. Commercial multi-peril generated $51 million and accounted for 28% of total net written premium, up from 24% last year. The aforementioned program reinsurance change this quarter drove $21 million of net written premium in this line. For the full year, we would expect retention levels to be in the low 20s. Casualty generated $35 million compared to roughly $2 million in Q2 of last year. As we previously indicated, the increase in casualty retention was intentional and driven mostly by the long-tenured program Rick mentioned earlier. However, the 20% retention rate this quarter was also bolstered by the aforementioned program reinsurance change. So for the full year, we expect the casualty retention level to be in the mid-teens. Revenue in the second quarter was $145 million, up 23% over Q2 of last year. We expect revenue year-over-year growth to accelerate in the second half of the year as the net written premium growth in the quarter is going to earn in. In Q2, our net combined ratio improved 4 percentage points to 95.8% compared to Q2 of last year. This was achieved by improvements in expense ratio and accident year loss ratio, slightly offset by a lower prior accident year reserve benefit in Q2 versus Q2 of last year. Our Q2 net loss ratio increased 3 percentage points year-over-year to 50.4%. Accident year ex-CAT loss ratio improved to 45.8% from 46.4% last year, reflecting our continued focus on underwriting profitability. Generally, we view accident year ex-CAT loss ratios in the mid-40s as excellent results. CAT loss ratio improved 1 percentage point to 6.7% as Q2 this year and last year both experienced relatively light CAT losses. Prior accident year reserve development was 2% in the second quarter compared to roughly 7% in Q2 of last year. In Q2, net expense ratio improved 8 percentage points year-over-year to 45.4%. As Rick mentioned previously, we believe that our continued focus on operating leverage through AI enables us to grow our business while keeping fixed expense largely flat, which in turn has helped driving the expense ratio improvement. Q2 net income came in at $10 million or $0.38 per diluted share, a $9 million improvement year-over-year. The year-over-year improvement was primarily due to the continued improvement of underwriting results and strong premium growth. Q2 adjusted net income grew 24% year-over-year to $21 million or $0.79 per diluted share. Total Hippo stockholders' equity at the end of the quarter was up 4% to $466 million from $449 million at last quarter and up 40% from the $333 million at Q2 of last year. Total book value per share at the end of the quarter was up 2% to $17.65 per share from $17.23 per share at last quarter and up 36% from $13.02 per share at Q2 of last year. Following this quarter's results, we are raising our full year guidance. We're increasing gross written premium from a range of $1.45 billion and $1.525 billion to a range of $1.65 billion and $1.7 billion. We are increasing net written premium from a range of $520 million and $550 million to a range of $565 million and $580 million. We're increasing revenue from a range of $560 million and $570 million to a range of $580 million and $585 million. We are lowering our net combined ratio from a range of 103% and 105%, inclusive of a 13% CAT loss ratio to a range of 99% and 101%, inclusive of a 10% CAT loss ratio. And finally, we're increasing adjusted net income from a range of $48 million and $56 million to a range of $62 million and $70 million, while maintaining the expected impact from stock-based compensation and depreciation and amortization to roughly $42 million. And with that, operator, I would now like to open the floor to questions. Operator: Your first question comes from the line of Randy Binner with Texas Capital. Randy Binner: Hopefully, you're hearing me okay. I had a tough connection there. But I have a question about just the business mix going forward. It was a good result this quarter, but the casualty lines, in particular, were a lot of the premiums. And so is this a function -- you went through retention and growth opportunities in program. But should we think of Hippo as being more like 1/3 or less homeowners longer term? Just I think a lot of people have thought of it as more of a home insurer. Obviously, you've had a lot of success with the programs. But just trying to understand looking out in the future, what the business mix is of this kind of multiline carrier. Richard McCathron: Randy, this is Rick, and we can hear you loud and clear. So I appreciate the question. I think the way everybody should really consider and think about Hippo is it's our objective to build a very diversified portfolio that allows us to optimize mix based on a market cycle and market segment. So for us, as an example, we talked about the E&S market is softer right now, so we can toggle that back while we're growing the admitted market. Homeowners business is looking favorable. So we're growing that with our Westwood and Progressive partnerships on the admitted basis line. But for us to get to a fully diversified portfolio where we have a blended and balanced book, we want to make sure that our commercial multi-peril, our casualty lines gets up to a point where it does create optimal balance for our homeowners line. So we still emphasize the quality of Hippo's home insurance program. We continue to grow that program. We will continue to grow that program. But we want to make sure the portfolio stays in balance over time. So the more we grow homeowners, the more we're going to want to grow casualty to create that balance that I mentioned before. So from an optimal mix perspective, it's very important for us to make sure that we are driving against favorable trends and favorable product lines and favorable market cycles and again, toggling back when the market cycle might be distressed. Randolph Binner: Okay. Understood. And then just a couple of quick follow-ups. When you -- the E&S referenced the market being softer, that is in homeowners, you're seeing softer E&S? Richard McCathron: Yes, correct. Randy Binner: Okay. And that makes sense. And then I guess just for the casualty lines growth, I think a common reaction is that, that's kind of growing in a softer area of the market, but of course, you have a lot of control to your programs. So just maybe like just a little more granularity on kind of like the partnerships, the market opportunity and writing those programs and kind of seeing outsized casualty growth and which broadly is seen as a softer casualty market? Richard McCathron: Yes, Randy, happy to talk about that. I think one thing that is really important to recognize is most of our casualty growth is concentrated in existing known long-tenured programs to us. This is not us going out and chasing new opportunities, chasing rate, chasing growth. If you look at like CMP as an example, we tie that back to we are fast becoming the program carrier of choice. We have 50 programs in that space. We know these programs well. These programs are growing with us. We reviewed in the last 12 to 18 months, approximately 200 programs and selected a relatively small percentage of those as somebody that we want to partner with on a go-forward basis. So from our perspective, it comes through a combination of organic growth with existing long-tenured partners and lack of a better term, cherrypicking new programs that we believe are very well operated and ones that again help us get to that diversified balance that I was talking about. Operator: Your next question comes from the line of Tommy McJoynt with KBW. Thomas Mcjoynt-Griffith: To start off, can you talk a little more about the partnership with Accelerant that you announced in June? I guess the important question that we want to ask is thinking about premiums that are coming through that channel with Accelerant and the economics or the bottom line impact of those premiums, how do they compare with non-Accelerant revenues that are coming through? Just want to understand the difference as we think about modeling those premiums. Richard McCathron: Yes, Tommy, this is Rick. Happy to start, and then Guy can jump in with any other detailed questions. I think first and foremost, the way we view the Accelerant program is a way for us to grow the premium with a partner that has access to a large number of MGA programs. I think we've published that we believe and expect us to be in excess of $500 million next year. But I also think there's more opportunity in that particular space. But we do generally look at each program in great detail before we agree to be the carrier to support Accelerant with that particular program. So again, I'd really like to emphasize today, our growth comes with thoughtful quality, not just growth at all costs. Accelerant gives us an opportunity to look at those programs and then take those programs on and then continue to grow it. We, of course, have our own sourcing of business in the program space outside of Accelerant. And in those, we generally look for things, as I mentioned before, with Randy's question, operators that are very -- have a long track record, high quality, ones that have been in business for quite some time or at least have the expertise in the particular product line space. And then we also go out and hire internally to Hippo experts in both underwriting and claims handling in that particular segment. So we are an additional backstop or an additional vet on the quality of business that comes in, both on a per risk basis, on a claims handling basis and in the aggregate. So this is the way we look at Accelerant for the most part. I think Accelerant continues to grow. Therefore, they need lots of capacity. We're proud to be one of their capacity providers, and it allows us to get views of programs that maybe we normally would not have been able to take a look at. Guy Zeltser: Tommy, this is Guy. Just wanted to also comment on the economics. This is a fairly standard transaction. So when you model the business going forward, in the commission income side specifically, it's very standard to other deals that we're doing. So it should be viewed as a scale-up in line with the growth -- with ceded earned premium. Thomas Mcjoynt-Griffith: Okay. Got it. That all makes sense. And then switching over a question on the property books across homeowners and the commercial side as well. We hear from a lot of competitors that competition in the space is intensifying. You are seeing some rate deceleration there. And some of that, frankly, reflects the lower cost of reinsurance and you guys reported that as well. So can you just talk about the competitive environment and where you see sort of margins heading in the various property books of business that you have? Richard McCathron: Yes. I think this is one of the -- Tommy, I think this is one of the real benefits of our platform because we do write across multiple product lines and multiple perils barrels, we're not in the business of chasing risk and chasing growth in a softening market. I agree with your sentiment that the homeowners market is absolutely softening right now, which is one of the reasons why you're seeing an uptick on the commercial and casualty sides of our business. But we do believe we have so much room to grow in the property space, both in our own homeowners program and some of the MGAs that we support that we think that our growth won't slow into the soft market, again, because we are relatively small compared to the industry in that particular space. However, what we will commit to is that if we find ourselves in a position where we do not believe that growth in any particular product line will be accretive to our bottom line and to our combined ratio, we won't grow in that space. And so that's, again, the force of what we've built here is those levers for us to pull across cycle, across product line and across programs and both owned and non-owned business. Guy Zeltser: Tommy, this is Guy again. I just wanted to also add 2 points on top of what Rick just mentioned. So on the homeowner side, one of the reasons why we love the partnership with Progressive is that it gives us access to a lot of lead generation, a lot of flow. We're right now live with Progressive at 8 states, but we do plan to triple the state footprint by the end of this year, and that is giving us even more volume. And the influx of volume allows us to still be very, very disciplined and only binding businesses we feel very good about from a profitability perspective. And the second thing, you also asked about property within the CMP line. We also see the same trend. So even though the CMP is growing, we do see with commercial property specifically some softening, which is why we're pulling back, which is why the growth you're seeing is actually coming from other lines. So it's the same thing that Rick has mentioned, where we are seeing softness, we have no problem of pulling back. And the most important thing, again, is to be disciplined across each and every line. Richard McCathron: Yes, Tommy, one thing I'll add to what Guy had just mentioned is the growth that we are experiencing in Progressive, we only expose a rate to Progressive customers for particular business that we want to write, both from a geographical basis, but also from an inherent underlying per policy basis. So we do not expose a price or a Hippo quote on any customer of Progressives that doesn't fit into our desired footprint and our desired underwriting box. Operator: Your next question comes from the line of Andrew Andersen with Jefferies. Sidney Schultz: This is Sid on for Andrew. Curious if you could expand on why right now was the -- why now is the right time to add the whole account quota share and what economics made the transaction attractive? And then I know you touched on casualty and CMP, but should we expect any change in the retention in homeowners moving forward? Richard McCathron: This is Rick. Thanks for the question. I'll go ahead and start with this one. The whole account quota share is more of a capability. The amount of our risk ceded in our whole account quota share is very, very small. But what it does is it creates a capability that as we continue to grow over time, again, another lever for us to pull to put more risk to third-party reinsurers if we feel like it's the best way to stick within our risk tolerance framework. And so for us, it's more of a capability. I don't think it meaningfully impacts the economics of the business, certainly not at the size of business that we're placing through it, but it's a capability that we thought it was important for us to have as we experience continued growth throughout. Sid, remind me what was your second question? Sidney Schultz: Yes. Just curious if -- I know you guys had touched on casualty and CMP retention, but if we should expect any changes in the homeowners retention moving forward? Richard McCathron: Yes, that's right. Thank you, Sid. First of all, for the Hippo home insurance program from an attritional loss perspective and even at the lower levels of CAT, we, for all intents and purposes, maintain near 100% of that risk. So there's really nowhere to go up with that because we're already taking most of it. For our program partners in the property space, we do participate in a sizable amount of risk. It ranges between 20% with some partner programs and up to 40% with others. We think our risk acceptance and our retention for property is right where we want it to be. So we would not expect it to increase in the foreseeable future. Guy Zeltser: Sid, this is Guy here. The only thing I would add is from -- if you just look at the homeowners line, you can tell that we -- you can see that we have provided the mix between the admitted and non-admitted, and as Rick mentioned, because we are retaining more on the admitted side, and that's the piece that is growing faster, you should expect a bit of an uptick in the overall retention of that line. But not -- I would say, not significantly above what you're seeing right now. But for every intents and purpose, I think you can triangulate the almost 100% retention on the attritional side on the admitted side of the business. And then the rest will just be a plug number. Sidney Schultz: Okay. And then just as a follow-up, I'm curious to hear if you're seeing any competitive changes on fronting fees or economics as more capital enters the MGA and fronting markets or maybe you're seeing the opposite occur? Richard McCathron: Yes, it's a really good question. I think for the most part, we are not seeing changes in that because despite what I think a lot of people believe, the fronting business is not a commodity business. And I think you're seeing that by the amount of deals that we are winning. We are not winning based on decreasing fronting fees or economics back to the MGA. We are winning on more capabilities we can provide to the MGA, both in the form of services, in the form of data, data insights, the ability to share some of the technologies that we've been building from an AI perspective. So when programs are coming to a fronting carrier, they generally fall into 1 of 2 buckets. The bucket where the program will take any carrier at the lowest price or the lowest cede commission, we don't play in that game. The other bucket is those that say we want a long-term partner that has enough capital to support our growth, can retain risk, can provide other valuable services and capabilities far beyond just access to the balance sheet and to the rating. I'll also reinforce we had a size increase last quarter. So now we're able at our AM Best A- IX, we're able to really participate in even more opportunities than we were previously. Operator: Your next question comes from the line of Timothy D'Agostino with B. Riley Securities. Timothy D'Agostino: Just one question on my end. On the 2028 growth targets on Slide 14, seem to emphasize potential new lines. I was just kind of just wondering, for Hippo entering new lines, is that really a 2028 idea? Or could we see that in 2027? And then could you just kind of remind us of the game plan when entering those new lines? Richard McCathron: Yes, Tim, this is Rick. I'm assuming your question is around Hippo entering new lines on a manufactured basis of products we manufacture as opposed to products that we front for. So I'll answer both questions. First of all, for products that we manufacture, I would expect us to enter into either new lines or new flavors of lines before the 2028 target. By flavors, I mean, new things that we might be doing within the personal homeowners or property space and other things that might be tangential to that particular space. So we're not ready at this point to share what those are. But I think in future quarters prior to 2028, we'll be able to share a lot more in detail. But we do want to grow the owned premium side and the owned product side. On the fronting business, we will enter new lines if we believe those lines are diversifying to the business that we already have. Just as a reminder, Hippo has lots of different carriers within its Spinnaker Insurance Group both admitted and non-admitted. We have lots of certificates of authority, not just property and casualty, but also with accident health. There are opportunities that come to us every day, and we go through a fairly detailed analysis of every opportunity to determine, is this accretive to that diversification goal? And will that individual program positively impact the bottom line of the business. So although I can't give you specifics of what those might be at this point, I can tell you that we are looking at other opportunities that meet those strategic goals of ours. Operator: We have reached the end of the Q&A session. I will now turn the call back to management for closing remarks. Richard McCathron: Well, I appreciate all of you joining us this morning. We're excited about the quarter that we've had and even more so about the future. So we look forward to speaking with you again next quarter. Thank you, everyone. Operator: This concludes our call. Thank you for attending. You may now disconnect. Before you buy stock in Hippo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hippo wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Hippo (HIPO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Hippo Holdings Inc. (HIPO) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +276.19%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.65, delivering a surprise of +124.14%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Hippo Holdings, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $144.7 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.89%. This compares to year-ago revenues of $117.3 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hippo Holdings shares have lost about 0.8% since the beginning of the year versus the S&P 500's gain of 6.9%. While Hippo Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hippo Holdings was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.29 on $149.8 million in revenues for the coming quarter and $1.84 on $566.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Pelagos Insurance Capital (PLGO), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This insurance and reinsurance company is expected to post quarterly earnings of $0.88 per share in its upcoming report, which represents a year-over-year change of +633.3%. The consensus EPS estimate for the quarter has been revised 8.5% lower over the last 30 days to the current level. Pelagos Insurance Capital's revenues are expected to be $645.88 million, up 10.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hippo Holdings Inc. (HIPO) : Free Stock Analysis Report Pelagos Insurance Capital Limited (PLGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SAN JOSE, Calif., July 30, 2026 /PRNewswire/ -- Hippo Holdings Inc. (NYSE: HIPO), a technology-native insurance platform reported net income of $10 million, or $0.38 per diluted share and adjusted net income of $21 million, or $0.79 per diluted share, for the quarter ended June 30, 2026. Second Quarter Highlights Gross Written Premium of $482 million increased 61.5% over 2Q25 Net income of $10 million up from $1 million in 2Q25 Adjusted net income of $21 million (1) increased 23.5% over 2Q25 Combined Ratio improved 4 percentage points to 95.8% compared to 2Q25 Net Loss Ratio of 50.4% compared to 47.0% in 2Q25 Accident Year Net Loss Ratio x CAT of 45.8% improved from 46.4% in 2Q25 Revenue of $145 million grew 23.4% over 2Q25 Book Value per share of $17.65 up 4.0% from year-end 2025 "The power of the Hippo platform was truly on display this quarter, as we delivered  significant top and bottom-line growth, with gross written premium up 61% to $482 million, revenue up 23% to $145 million, and net income up eight-fold from last year to $10 million, while simultaneously advancing our AI initiatives and strengthening our business partnerships," said Rick McCathron, Hippo President and CEO. He continued, "Most exciting is that this quarter's results are not a one-time event, but a proof point of the value Hippo brings to both its partners and customers. Our elevated confidence in the ability to execute as a unified, technology-native insurance platform has led us to increase guidance for full year 2026 where we now expect over $1.65 billion of gross written premium with upwards of $70 million of adjusted net income." Second Quarter Operating Summary Net income of $10 million, or $0.38 per diluted share, compared to a $1 million in Q2 of last year. The improvement was driven primarily by stronger underwriting performance and the continued benefit of scale. Adjusted net income of $21 million, or $0.79 a diluted share, compared to a $17 million in Q2 of last year. This quarter's results equate to a 18% annualized adjusted return on average stockholders' equity. Gross written premium of $482 million for the quarter increased 61% year over year, up from $299 million in Q2 of last year. Growth was driven by both the Casualty and Commercial Multi-Peril (CMP) lines which were up 177% and 65% over last year, to $180 million and $138 million, respectively. The overall growth strategy is focused on improving underwriting profitability and reducing volatility, including through greater portfolio diversification. For the quarter, Casualty accounted for 37% of gross written premium, compared to CMP which accounted for 29% and Homeowners which accounted for 22%. Net written premium of $183 million increased by $76 million or 71% from Q2 of last year. Growth in net written premium exceeded the growth in gross written premium due to both a mix shift and a program reinsurance structure change that added approximately $21 million in CMP and $6 million Casualty net written premium this quarter. The overall 38% net retention rate in the quarter was higher than our full-year guidance of approximately 36% driven by the previously mentioned program changes in Casualty and CMP. Revenue in the quarter of $145 million increased 23% from $117 million in Q2 of last year. The increase was primarily driven by higher net earned premium up 26% to $119 million, and increases in net investment income, commission income and service and fee income. Net loss ratio of 50.4% increased 3 percentage points over the prior year. This change was largely driven by the prior year period benefiting from 7% favorable prior year development compared to 2% of favorable development this quarter. The net accident year loss ratio excluding CAT losses of 45.8% improved by 1 percentage points over the Q2 of last year. Expense ratio of 45.4% improved 8 percentage points over the prior year period driven by continued improvement of operating leverage, and continued focus on expense discipline. Combined ratio of 95.8% improved 4 percentage points over the prior year period, similarly driven continued underwriting performance below full year guidance and the improving expense ratio noted above. Total Hippo stockholders' equity of $466 million was up 7%, from $436 million at year-end 2025. Book value per share of $17.65 , at June 30, 2026, was up 4% compared to $16.97 per share at year-end 2025. Guidance Update The following Guidance update is based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Note Regarding Forward-Looking Statements" below. Second Quarter Earnings Conference Call and Webcast Information Date: Thursday, July 30, 2026Time: 8:00 a.m. Eastern Time / 5:00 a.m. Pacific TimeDial In: +1 833-461-5787 / Global Dial-In NumbersAccess: 180619200Webcast: https://events.q4inc.com/attendee/180619200 A replay of the webcast will be made available after the call in the investor relations section of the company's website at https://investors.hippo.com/ About Hippo Hippo is a technology-native insurance group that uses its carrier platform to diversify risk across both personal and commercial lines. Through the Hippo Homeowners Insurance Program, the company applies deep industry expertise and advanced underwriting to deliver proactive, tailored coverage for homeowners. Hippo Holdings Inc. subsidiaries include Hippo Insurance Services, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company, and Wingsail Insurance Company. Hippo Insurance Services is a licensed property casualty insurance agent with products underwritten by various affiliated and unaffiliated insurance companies. For more information, please visit http://www.hippo.com. Underwriting Data The Company has a single reportable segment and offers property & casualty insurance products. Gross written premiums (GWP), Net written premiums (NWP), and Net earned premiums (NEP) by line of business are presented below: Information about Key Operating Metrics/Non-GAAP Financial Measures We define adjusted net income, a Non-GAAP financial measure, as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments which would be included in calculating our income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. We use adjusted net income as an internal performance measure in the management of our operations because we believe it gives our management and financial statement users useful insight into our results of operations and our underlying business performance. Adjusted net income does not reflect the overall profitably of our business and should not be viewed as a substitute for net income calculated in accordance with GAAP. Other companies may define adjusted net income differently. We define diluted adjusted earnings (loss) per share, a Non-GAAP financial measure, as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. Diluted adjusted earnings (loss) per share should not be viewed as a substitute for diluted earnings (loss) per share calculated in accordance with GAAP. Other companies may define diluted adjusted earnings (loss) per share differently. We define annualized adjusted return on equity, a Non-GAAP financial measure, as adjusted net income (loss) expressed on an annualized basis as a percentage of average beginning and ending Hippo stockholders' equity during the period. We use annualized adjusted return on equity as an internal performance measure in the management of our operations because we believe it gives our management and financial statement users useful insight into our results of operations and our underlying business performance. Annualized adjusted return on equity should not be viewed as a substitute for return on equity calculated in accordance with GAAP. Other companies may define annualized adjusted return on equity differently. We define tangible book value per share, a Non-GAAP financial measure, as total stockholders' equity, less intangible assets and capitalized internal software, divided by the outstanding number of shares of our common stock at the end of the relevant period. Our definition of tangible book value per share may not be comparable to that of other companies, and it should not be viewed as a substitute for book value per share calculated in accordance with GAAP. We use tangible book value per share internally to evaluate changes from period to period in book value per share exclusive of changes in intangible assets. These Non-GAAP financial measures are in addition to, and not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP. Reconciliations of these Non-GAAP financial measures to their most directly comparable GAAP counterpart is included above. We believe that these non-GAAP measures of financial results provide useful supplemental information to investors about Hippo. The Company is unable to provide a reconciliation of Adjusted Net Income (Loss) to Net Income (Loss), its most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort, because items that impact this GAAP financial measure are not within the Company's control and/or cannot be reasonably predicted. These items may include, but are not limited to, predicting forward-looking share-based compensation. Such information may have a significant, and potentially unpredictable, impact on the Company's future financial results. Cautionary Note Regarding Forward-Looking Statements Certain statements included in this press release 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. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the financial position, business strategy, and the plans and objectives of management for Hippo Holdings Inc. (together with its subsidiaries, "Hippo," the "Company," "we," "us" and "our") for future operations, statements regarding our strategic relationships, and statements regarding future expansion of our program are forward-looking statements. These statements are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements generally are accompanied by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "future," "intend," "may," "might," "outlook," "plan," "possible," "potential," "predict," "project," "seek," "seem," "should," "strive," "will," "would," including the negative expressions of these words and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, for example, statements about: our future results of operations and financial condition, including estimates and forecasts of financial and operating results and performance metrics, and our ability to attain and maintain profitability; our business strategy, including our cost reduction efforts, our diversified distribution strategy, and our plans to expand into new markets and new products; our ability to grow our business and, if such growth occurs, to effectively manage such growth, including the growth and development of our builder network and other distribution channels; customer satisfaction and our ability to attract, retain, and expand our customer base; our ability to maintain and enhance our brand and reputation, including the quality of our products and services; our expectations about our book of business, including our ability to cross-sell and to attain greater value from each customer; the effects of seasonal and cyclical trends on our results of operations; our ability to compete effectively in the segments of the insurance industry in which we operate; our ability to underwrite risks accurately and charge competitive yet profitable rates to our customers, and the sufficiency of the analytical models we use to assess and predict exposure to catastrophe losses; our expectations regarding the effectiveness and adequacy of our reinsurance program, our ability to maintain reinsurance contracts and our near- and long-term strategies and expectations with respect to the availability, adequacy, coverage, limits, pricing, and cession of insurance risk; our ability to utilize, develop, and protect our proprietary technology, digital platform, and intellectual property; our development, deployment, and use of artificial intelligence and machine learning technologies, including the risk that competitors or other third parties may incorporate such technologies into their products more quickly or more successfully than we do; our ability to leverage our data, technology, and geographic diversity to help manage risk; our ability to expand our product offerings or improve existing ones; our ability to attract and retain personnel, including our officers and key employees; potential harm caused by outages or interruptions in, or delays to, services provided by our third-party providers, including our data vendors; potential harm caused by misappropriation of our data and compromises in cybersecurity, and our ability to receive, process, store, use, and share data in compliance with laws and regulations related to data privacy and data security; potential harm caused by changes in internet search engines' methodologies; our denial of claims or our failure to accurately and timely pay claims; the effects of severe weather events and other natural or man-made catastrophes, including the effects of climate change, global pandemics, and terrorism; any overall decline in economic activity; regulators' identification of errors in the policy forms we use, the rates we charge, and our customer communications, including cancellations, non-renewals, and reinstatements, through market conduct exams, complaints, or other inquiries; our ability to navigate extensive insurance industry regulations and the scrutiny of state insurance regulators, and the effects of existing or new legal or regulatory requirements on our business, including with respect to maintenance of risk-based capital and financial strength ratings, the insurance industry generally, and data privacy and cybersecurity, in the United States and internationally; our expected use of cash on our balance sheet, our future capital needs, and our ability to raise additional capital; fluctuations in our results of operations and operating metrics; and our public securities' liquidity and trading. These statements are based on the current expectations of Hippo's management and are not predictions of actual performance. You should not rely upon forward-looking statements as predictions of future events. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, and many actual events and circumstances are beyond the control of Hippo. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we cannot guarantee that the future results, levels of activity, performance, events, and circumstances reflected in the forward-looking statements will be achieved or occur at all. These forward-looking statements are subject to a number of risks, uncertainties, and other factors, including those described above and other risks set forth in the sections entitled "Risk Factors" in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, and in other documents that may be filed by the Company from time to time with the Securities and Exchange Commission (the "SEC"). Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Hippo does not presently know or that Hippo currently believes are immaterial that could also cause actual results, events, or circumstances to differ materially from those described in the forward-looking statements. These forward-looking statements are based on information available as of the date of this press release and reflect Hippo's expectations, plans, forecasts, and views of future events as of that date. Accordingly, forward-looking statements should not be relied upon as representing Hippo's views as of any subsequent date, and Hippo does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws. While Hippo may elect to update these forward-looking statements at some point in the future, Hippo specifically disclaims any obligation to do so. Accordingly, undue reliance should not be placed upon the forward-looking statements. Rounding Certain monetary amounts, percentages, and other figures included in this release have been subject to rounding adjustments. The sum of individual metrics may not always equal total amounts indicated due to rounding. ContactsInvestors:Charles [email protected] Press:Mark [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/hippo-reports-second-quarter-2026-financial-results-302838160.html

Ategrity Specialty Insurance Company Holdings (ASIC) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.07%. A quarter ago, it was expected that this company would post earnings of $0.4 per share when it actually produced earnings of $0.51, delivering a surprise of +27.5%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Ategrity Specialty Insurance Company Holdings, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $129.89 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 8.09%. This compares to year-ago revenues of $101.78 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ategrity Specialty Insurance Company Holdings shares have added about 21.8% since the beginning of the year versus the S&P 500's gain of 8.5%. While Ategrity Specialty Insurance Company Holdings has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ategrity Specialty Insurance Company Holdings was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.49 on $143.87 million in revenues for the coming quarter and $2.16 on $561.68 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Hippo Holdings Inc. (HIPO), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30. This company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -67.7%. The consensus EPS estimate for the quarter has been revised 28.6% lower over the last 30 days to the current level. Hippo Holdings Inc.'s revenues are expected to be $137.95 million, up 17.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ategrity Specialty Insurance Company Holdings (ASIC) : Free Stock Analysis Report Hippo Holdings Inc. (HIPO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research