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Hippo Holdings Inc. (HIPO)

CIK: 0001828105. SIC: 6331 Fire, Marine & Casualty Insurance. Latest 10-K as of: 2026-03-05.

SIC breadcrumb: Finance, Insurance, And Real Estate > Insurance Carriers > SIC 6331 Fire, Marine & Casualty Insurance

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1828105. Latest filing source: 0001828105-26-000008.

Selected Fundamentals

MetricValueUnitFYFiled
Revenue468,600,000USD20252026-03-05
Net income57,700,000USD20252026-03-05
Assets1,905,500,000USD20252026-03-05

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001828105.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Free cash flow = operating cash flow - capital expenditures. Missing metrics are omitted rather than fabricated.

Metric202020212022202320242025
Revenue51,600,00091,200,000119,700,000209,700,000372,100,000468,600,000
Net income-141,500,000-371,400,000-333,400,000-273,100,000-40,500,00057,700,000
Diluted EPS-1.63-34.11-14.66-11.58-1.642.22
Operating cash flow-65,400,000-124,500,000-161,500,000-92,400,00047,500,0009,200,000
Capital expenditures400,000800,0004,900,00029,600,000300,000100,000
Share buybacks0.001,800,00015,600,00014,500,000
Assets979,400,0001,642,700,0001,568,900,0001,524,700,0001,543,400,0001,905,500,000
Liabilities834,100,000781,000,000975,400,0001,140,000,0001,178,200,0001,469,400,000
Stockholders' equity-199,600,000859,600,000589,900,000377,900,000362,100,000436,100,000
Cash and cash equivalents452,300,000775,600,000194,500,000142,100,000197,600,000218,300,000
Free cash flow-65,800,000-125,300,000-166,400,000-122,000,00047,200,0009,100,000

Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

Metric202020212022202320242025
Net margin-130.23%-10.88%12.31%
Return on equity-43.21%-56.52%-72.27%-11.18%13.23%
Return on assets-14.45%-22.61%-21.25%-17.91%-2.62%3.03%
Liabilities / equity0.911.653.023.253.37

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001828105.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

QuarterEnd DateRevenueNet IncomeDiluted EPSMethod
2022-Q12022-03-31-0.12reported discrete quarter
2022-Q22022-06-30-0.13reported discrete quarter
2022-Q32022-09-30-5.66reported discrete quarter
2022-Q42022-12-3135,800,000-63,100,000derived Q4 = FY annual - nine-month YTD
2023-Q12023-03-3139,800,000-69,800,000-3.01reported discrete quarter
2023-Q22023-06-3047,700,000-107,800,000-4.61reported discrete quarter
2023-Q32023-09-3057,700,000-53,100,000-2.24reported discrete quarter
2023-Q42023-12-3164,500,000-42,300,000derived Q4 = FY annual - nine-month YTD
2024-Q12024-03-3185,100,000-35,700,000-1.47reported discrete quarter
2024-Q22024-09-3095,500,000-8,500,000-0.34reported discrete quarter
2025-Q12025-03-31110,300,000-47,700,000-1.91reported discrete quarter
2025-Q22025-06-30117,300,0001,300,0000.05reported discrete quarter
2025-Q32025-09-30120,600,00098,100,0003.77reported discrete quarter
2025-Q42025-12-31120,400,0006,000,000derived Q4 = FY annual - nine-month YTD
2026-Q12026-03-31121,500,0007,100,0000.27reported discrete quarter

Quarterly Charts

Macro Cross-References

Latest quarter (10-Q)

Latest 10-Q source: 0001828105-26-000025.

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high. Filing date: 2026-04-30. Report date: 2026-03-31.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of our operations addresses the consolidated financial condition as of March 31, 2026, compared with December 31, 2025, and consolidated results of operations for the three months ended March 31, 2026 and 2025. This should be read in conjunction with our unaudited interim condensed consolidated financial statements and notes thereto included in Item 1 of this report and also our Management’s Discussion and Analysis of Financial Condition and Results of Operations, the “Risk Factors” section, and the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled “Risk Factors” in our Annual Report and may be updated from time to time in our other filings with the SEC.

Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “we,” “our,” “Hippo” and “the Company” refer to the business and operations of Hippo Holdings Inc. and its consolidated subsidiaries.

Overview

Hippo is an insurance holding company with subsidiaries that provide property and casualty insurance products to both individuals and business customers primarily in the United States. We conduct insurance underwriting through our regulated carrier subsidiaries and generate revenue from a combination of insurance underwriting activities and fee- and commission-based services. Our operations include providing insurance capacity and related services for our owned MGA and in partnership with third-party MGAs and fee-based and commission-based services that support the placement and servicing of insurance policies.

We continue to execute actions to support balanced diversified growth, leveraging both third-party MGAs and our owned MGA to source and underwrite a diversified portfolio of risk across personal and commercial lines. We participate in MGA programs when they align with our risk appetite, and assess performance through disciplined underwriting, selective risk retention, reinsurance, and ongoing portfolio management. Over time, the mix of our written premium base has evolved, and we expect it may continue to evolve, with a lower proportion attributable to homeowners insurance as we further diversify our portfolio across less catastrophe exposed lines of business.

Line of business disclosure

Line-of-business information represents supplemental premium-related information and is not presented as separate reportable segments. For comparability, certain line-of-business information is presented for all periods shown, including periods prior to the initial introduction of this presentation in our disclosures.

Gross written premium and net written premium by line of business are presented in the Key Operating and Financial Metrics section below. Net earned premium by line of business is presented in the Results of Operations section immediately below.

Reinsurance

We maintain a comprehensive reinsurance program to manage risk exposure, reduce earnings volatility, and safeguard capital. By ceding a portion of our underwriting risk to highly rated reinsurers and alternative capital providers, we limit the financial impact of catastrophe events and large loss activity. Nevertheless, we remain ultimately responsible for policyholder claims should a reinsurer fail to perform.

Our reinsurance strategy includes a mix of quota share and excess of loss (“XOL”) structures, alongside collateralized protection through catastrophe bonds. We work with reinsurers rated “A-” (Excellent) or better by A.M. Best, or require appropriate collateral. Contracts often include provisions allowing for replacement of reinsurers whose financial condition deteriorates.

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Our catastrophe reinsurance program supports property risks underwritten by us on behalf of our MGA and third-party MGAs. These risks are protected by program-specific XOL treaties, and in some cases, quota share reinsurance. In addition to the program-specific covers, we are also protected by a corporate catastrophe cover, and participation in the Florida Hurricane Catastrophe Fund (FHCF). This structure is designed to provide protection against severe loss events across the portfolio, covering up to at least a 1-in-250-year return period threshold.

For business written by our MGA, we have strategically retained more risk in recent periods by scaling back proportional reinsurance, reflecting our confidence in the portfolio’s underwriting performance. Our MGA is primarily covered by standalone catastrophe XOL protection.

Additionally, we utilize collateralized reinsurance through Mountain Re Ltd., a Bermuda-based special purpose insurer. The catastrophe bonds issued through Mountain Re Ltd. provide multi-year per occurrence coverage for a range of perils for business written through our MGA.

Results of Operations for the Three Months Ended March 31, 2026 and 2025

The following table summarizes net income (loss) for the periods presented:

Three Months Ended March 31,

2026

2025

 Change

% Change

(in millions, except percentages)

Revenue:

Net earned premium

$

98.9 

$

87.3 

$

11.6 

13 

%

Commission income, net

12.7 

14.4 

(1.7)

(12)

%

Service and fee income

3.2 

2.8 

0.4 

14 

%

Net investment income

6.7 

5.8 

0.9 

16 

%

Total revenue

121.5 

110.3 

11.2 

10 

%

Expenses:

Losses and loss adjustment expenses

47.5 

92.4 

(44.9)

(49)

%

Insurance related expenses

34.9 

30.2 

4.7 

16 

%

Technology and development

9.4 

8.1 

1.3 

16 

%

Sales and marketing

6.3 

8.9 

(2.6)

(29)

%

General and administrative

16.2 

16.5 

(0.3)

(2)

%

Interest and other expense (income), net

— 

(0.2)

0.2 

NM

Total expenses

114.3 

155.9 

(41.6)

(27)

%

Income (loss) before income taxes

7.2 

(45.6)

52.8 

116 

%

Income tax (benefit) expense

0.1 

(0.2)

0.3 

NM

Net income (loss)

7.1 

(45.4)

52.5 

116 

%

Net income attributable to noncontrolling interests, net of tax

— 

2.3 

(2.3)

NM

Net income (loss) attributable to Hippo

$

7.1 

$

(47.7)

$

54.8 

115 

%

(1) Note: “NM” (not meaningful) is used where the base period is near-zero and percentage change would be misleading.

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Net Earned Premium

The following table summarizes our net earned premiums by line of business for each period:

Three Months Ended March 31,

2026

2025

Change

% Change

(in millions, except percentages)

Line of Business

Homeowners

$

62.7 

$

61.6 

$

1.1 

2 

%

Renters

17.0 

16.6 

0.4 

2 

%

Commercial Multi-Peril

15.9 

6.6 

9.3 

141 

%

Casualty

3.2 

0.5

2.7 

540 

%

Other

0.1 

2.0 

(1.9)

(95)

%

Total

$

98.9 

$

87.3 

$

11.6 

13 

%

For the three months ended March 31, 2026, net earned premium was $98.9 million, an increase of $11.6 million, or 13% compared to $87.3 million for the three months ended March 31, 2025. The increase was due primarily to the earnings of increased gross written premiums volume across our Commercial Multi-Peril and Casualty lines.

Commission Income, Net

For the three months ended March 31, 2026, commission income was $12.7 million, a decrease of $1.7 million, or 12%, compared to $14.4 million for the three months ended March 31, 2025. The decrease was due primarily to a decrease in agency commissions of $5.4 million due to the sale of our homebuilder distribution network in the third quarter of 2025, partially offset by an increase in fronting fee revenue of $4.2 million earned from third-party MGA program partners, driven by growth across our Commercial Multi-Peril and Casualty lines.

Service and Fee Income

For the three months ended March 31, 2026, service and fee income was $3.2 million, an increase of $0.4 million, or 14%, compared to $2.8 million for the three months ended March 31, 2025.

Net Investment Income

For the three months ended March 31, 2026, net investment income was $6.7 million, an increase of $0.9 million, or 16%, compared to $5.8 million for the three months ended March 31, 2025. The increase was due primarily to higher average balance in cash and investments during the period. The Company’s investment portfolio is primarily comprised of securities issued by the U.S. government and agencies, money market accounts, high-grade corporate securities, residential and commercial mortgage-backed securities, and other governmental related securities.

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Losses and Loss Adjustment Expenses

For the three months ended March 31, 2026, losses and loss adjustment expenses were $47.5 million, a decrease of $44.9 million, or 49%, compared to $92.4 million for the three months ended March 31, 2025 due primarily to losses from a series of destructive wildfires affecting Los Angeles, California (the “LA Wildfires”) in the first quarter of 2025. Losses and loss adjustment expenses consisted of the following elements during the respective periods:

Three Months Ended March 31,

2026

2025

(in millions)

Catastrophe losses

$

4.3 

$

53.4 

Non-catastrophe losses

43.2 

39.0 

Total losses and loss adjustment expenses

$

47.5 

$

92.4 

Catastrophe loss ratio

4 

%

61 

%

Non-catastrophe loss ratio

44 

%

45 

%

Net loss ratio

48 

%

106 

%

Catastrophe loss ratio decreased for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due primarily to the absence of significant catastrophe events in the first quarter of 2026 compared to losses from the LA Wildfires in the first quarter of 2025. Catastrophe losses of $4.3 million for the three months ended March 31, 2026 were primarily related to convective storm activity.

Included in our catastrophe loss ratio for the three months ended March 31, 2026 is a benefit of 1 percentage point related to prior year favorable developments, whereas for the three months ended March 31, 2025, there was no benefit related to prior year developments.

Non-catastrophe loss ratio decreased for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due primarily to higher retention in lines with lower attritional loss ratios as well as the benefits of underwriting pricing actions taken during the period. Non-catastrophe losses increased by $4.2 million, reflecting higher net earned premium.

Included in our non-catastrophe loss ratio for the three months ended March 31, 2026, is a benefit of 2 percentage points related to prior year developments, whereas for the three months ended March 31, 2025, there was a benefit of 4 percentage points related to prior year favorable developments.

Insurance Related Expenses

For the three months ended March 31, 2026, insurance related expenses were $34.9 million, an increase of $4.7 million, or 16%, compared to $30.2 million for the three months ended March 31, 2025. The increase was due primarily to an increase in net acquisition expenses of $4.8 million due to increased premium.

Technology and Development Expenses

For the three months ended March 31, 2026, technology and development expenses were $9.4 million, an increase of $1.3 million, or 16%, compared to $8.1 million for the three months ended March 31, 2025. The increase was due primarily to higher employee-related costs of $1.2 million due to increase in headcount.

Sales and Marketing Expenses

For the three months ended March 31, 2026, sales and marketing expenses were $6.3 million, a decrease of $2.6 million, or 29%, compared to $8.9 million for the three months ended

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high. Filing date: 2026-03-05. Report date: 2025-12-31.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K.

Certain statements included in this section constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on Hippo Holdings Inc. and its subsidiaries. Actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially are described in the “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” sections included elsewhere in this Annual Report on Form 10-K.

Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “we,” “our,” “Hippo” and “the Company” refer to Hippo Holdings Inc. and its consolidated subsidiaries.

Overview

Hippo is an insurance holding company with subsidiaries that provide property and casualty insurance products to both individuals and business customers primarily in the United States. We conduct insurance underwriting through our regulated carrier subsidiaries and generate revenue from a combination of insurance underwriting activities and fee- and commission-based services. Our operations include providing insurance capacity and related services for our owned MGA and in partnership with third-party MGAs and fee-based and commission-based services that support the placement and servicing of insurance policies.

We continue to execute actions to support balanced diversified growth, leveraging both third-party MGAs and our owned MGA to source and underwrite a diversified portfolio of risk across personal and commercial lines. We participate in MGA programs when they align with our risk appetite, and assess performance through disciplined underwriting, selective risk retention, reinsurance, and ongoing portfolio management. Over time, the mix of our written premium base has evolved, and we expect it may continue to evolve, with a lower proportion attributable to homeowners insurance as we further diversify our portfolio across less catastrophe exposed lines of business. Our 2025 financial results reflect the business mix and portfolio composition during the period, as well as broader market conditions affecting the property and casualty insurance industry.

Segment structure

Beginning in the third quarter of 2025, we changed our reportable segment structure from three segments to one reportable segment to reflect the manner in which our chief operating decision maker evaluates financial performance and allocates resources. Prior-period segment information has been recast and is presented on a consistent basis in the notes to our consolidated financial statements.

This change affects how segment information is presented but does not impact our consolidated results of operations, financial condition, or cash flows. Accordingly, the discussion below focuses on our consolidated results. See Note 19 to the consolidated financial statements for additional information on Segments.

Line of business disclosure

During 2025, we expanded our presentation of operating information by line of business to provide additional transparency into the composition and diversification of our premium base. These lines of business reflect the primary categories of insurance products offered by our insurance subsidiaries, including Homeowners, Renters, Commercial Multi-Peril, Casualty, and other programs.

Line-of-business information represents supplemental premium-related information and is not presented as separate reportable segments. For comparability, certain line-of-business information is presented for all periods shown, including periods prior to the initial introduction of this presentation in our disclosures.

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The lines-of-business information presented in this section reflects how the Company presents gross written, net written and net earned premium by product category. Reserve development disclosures in Note 9 to the consolidated financial statements are disaggregated based on claim duration characteristics for financial reporting purposes.

Emerging Growth Company Status

We previously qualified as an emerging growth company (“EGC”) under the Jumpstart Our Business Startups Act of 2012. During fiscal year 2025, we ceased to qualify as an emerging growth company and are no longer eligible for the reduced reporting and disclosure requirements available to emerging growth companies. As a result, beginning with this Annual Report on Form 10-K, we are subject to additional reporting and compliance requirements applicable to accelerated filers that are not emerging growth companies, including the requirement that our independent registered public accounting firm provide an attestation report on the effectiveness of our internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act. The change did not have a material impact on our results of operations, liquidity, or capital resources for the period presented.

Reinsurance

We maintain a comprehensive reinsurance program to manage risk exposure, reduce earnings volatility, and safeguard capital. By ceding a portion of our underwriting risk to highly rated reinsurers and alternative capital providers, we limit the financial impact of catastrophe events and large loss activity. Nevertheless, we remain ultimately responsible for policyholder claims should a reinsurer fail to perform.

Our reinsurance strategy includes a mix of quota share and excess of loss (“XOL”) structures, alongside collateralized protection through catastrophe bonds. We work with reinsurers rated “A-” (Excellent) or better by A.M. Best, or require appropriate collateral. Contracts often include provisions allowing for replacement of reinsurers whose financial condition deteriorates.

Our catastrophe reinsurance program supports property risks underwritten by us on behalf of our MGA and third-party MGAs. These risks are protected by program-specific XOL treaties, and in some cases, quota share reinsurance. In addition to the program-specific covers, we are also protected by a corporate catastrophe cover, and participation in the Florida Hurricane Catastrophe Fund (FHCF). This structure is designed to provide protection against severe loss events across the portfolio, covering up to at least a 1-in-250-year return period threshold.

For business written by our MGA, we have strategically retained more risk in recent periods by scaling back proportional reinsurance, reflecting our confidence in the portfolio’s underwriting performance. Our MGA remains covered by standalone catastrophe XOL protection.

Additionally, we utilize collateralized reinsurance through Mountain Re Ltd., a Bermuda-based special purpose insurer. The catastrophe bonds issued through Mountain Re Ltd. provide multi-year per occurrence coverage for a range of perils for business written through our MGA.

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Results of Operations of the Year Ended December 31, 2025, 2024, and 2023

The following table sets forth our consolidated results of operations data for the periods presented:

Years Ended December 31,

Change

% Change

2025

2024

2023

2025 vs. 2024

(in millions)

Revenue:

Net earned premium

$

380.1 

$

272.5 

$

107.5 

$

107.6 

39 

%

Commission income, net

51.3 

63.6 

63.4 

(12.3)

(19)

%

Service and fee income

11.8 

11.6 

15.7 

0.2 

2 

%

Net investment income

25.4 

24.4 

23.1 

1.0 

4 

%

Total revenue

$

468.6 

$

372.1 

$

209.7 

$

96.5 

26 

%

Expenses:

Losses and loss adjustment expenses

229.9 

209.0 

181.7 

20.9 

10 

%

Insurance related expenses

131.3 

88.8 

79.1 

42.5 

48 

%

Technology and development expenses

32.5 

30.7 

47.0 

1.8 

6 

%

Sales and marketing expenses

33.5 

51.2 

80.1 

(17.7)

(35)

%

General and administrative expenses

67.1 

70.7 

79.6 

(3.6)

(5)

%

Impairment and restructuring charges

5.0 

3.6 

5.5 

1.4 

39 

%

Gain on sale of business

(95.0)

(54.4)

— 

(40.6)

75 

%

Interest and other expense (income), net

1.0 

(0.1)

(0.8)

1.1 

1100 

%

Total expenses

405.3 

399.5 

472.2 

5.8 

1 

%

Income (loss) before income taxes

63.3 

(27.4)

(262.5)

90.7 

331 

%

Income tax expense

0.7 

1.2 

0.5 

(0.5)

(42)

%

Net income (loss)

62.6 

(28.6)

(263.0)

91.2 

319 

%

Net income attributable to noncontrolling interests, net of tax

4.9 

11.9 

10.1 

(7.0)

(59)

%

Net income (loss) attributable to Hippo

$

57.7 

$

(40.5)

$

(273.1)

$

98.2 

242 

%

The following discussion describes the material drivers of these changes for the year ended December 31, 2025 compared to 2024 and should be read together with the key operating and financial metrics discussed below. For a discussion of year-over-year changes between 2024 and 2023, except for Net Earned Premium by Line of Business, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

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Net Earned Premium

The following table summarizes our net earned premiums by line of business for each period:

Years Ended December 31,

Change

2025

2024

2023

2025 vs. 2024

2024 vs. 2023

(in millions)

Line of Business

Homeowners

$

251.1 

$

220.8 

$

69.3 

$

30.3 

$

151.5 

Renters

72.4 

22.4 

17.1 

50.0 

5.3 

Commercial Multi-Peril

47.9 

19.0 

10.9 

28.9 

8.1 

Casualty

6.1 

2.0

3.4

4.1 

(1.4)

Other

2.6 

8.3 

6.8 

(5.7)

1.5 

Total

$

380.1 

$

272.5 

$

107.5 

$

107.6 

$

165.0 

For the year ended December 31, 2025, net earned premium was $380.1 million, an increase of $107.6 million, or 39% compared to $272.5 million for the year ended December 31, 2024. The increase was due primarily to the earning of increased gross written premiums and increased retention in our Renters and Commercial Multi-Peril lines of business as well as an increase in retention in our Homeowners line.

For the year ended December 31, 2024, net earned premium was $272.5 million, an increase of $165.0 million, or 153% compared to $107.5 million for the year ended December 31, 2023. The increase was due primarily to increased retention in our Homeowners line of business.

Commission Income, Net

For the year ended December 31, 2025, commission income was $51.3 million, a decrease of $12.3 million, or 19%, compared to $63.6 million for the year ended December 31, 2024. The decrease was due primarily to lower agency commission income of $11.7 million due to the sale of our homebuilder distribution network in the third quarter of 2025 and the sale of First Connect in the fourth quarter of 2024.

Service and Fee Income

For the year ended December 31, 2025, service and fee income was $11.8 million, an increase of $0.2 million, or 2%, compared to $11.6 million for the year ended December 31, 2024. Service and fee income is primarily comprised of policy fees sourced through our owned MGA.

Net Investment Income

For the year ended December 31, 2025, net investment income was $25.4 million, an increase of $1.0 million, or 4%, compared to $24.4 million for the year ended December 31, 2024. The increase was primarily driven by higher average balance of assets under management in the investment portfolio during the period. The Company’s investment portfolio is primarily comprised of securities issued by the U.S. government and agencies, money market accounts, high-grade corporate securities, residential and commercial mortgage-backed securities, and other governmental related securities.

Loss and Loss Adjustment Expenses

For the year ended December 31, 2025, loss and loss adjustment expenses were $229.9 million, an increase of $20.9 million, or 10%, compared to $209.0 million for the year ended December 31, 2024. Losses and loss adjustment expenses consisted of the following elements during the respective periods:

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Years Ended December 31,

2025

2024

(in millions)

Catastrophe losses

$

61.5 

$

58.0 

Non-catastrophe losses

168.4 

151.0 

Total losses and loss adjustment expenses

$

229.9 

$

209.0 

Catastrophe loss ratio

15 

%

21 

%

Non-catastrophe loss ratio

45 

%

56 

%

Net loss ratio

60 

%

77 

%

Catastrophe loss ratio decreased for the year ended December31, 2025 compared to the year ended December 31, 2024 due primarily to higher retention in lines with a lower exposure to catastrophe events, as well as lower number of catastrophe events. Catastrophe losses in 2025 were due primarily to a series of destructive wildfires affecting Los Angeles, California (the “LA Wildfires”), which occurred in the first quarter of 2025, whereas catastrophe losses in 2024 reflected a number of events including a series of wind, hail, and thunderstorm events affecting Southern and Midwest states during the first quarter of 2024, as well as Hurricane Milton and Hurricane Beryl, which occurred during the third and fourth quarters of 2024.

Included in our catastrophe loss ratio for the years ended December 31, 2025 and 2024 is a benefit of 1 percentage point related to prior year favorable developments in both years.

Non-catastrophe loss ratio decreased for the year ended December 31, 2025 compared to the year ended December 31, 2024 due primarily to higher retention in lines with lower attritional loss ratio as well as the benefits of underwriting pricing actions taken during the period.

Included in our non-catastrophe loss ratio for the years ended December 31, 2025 and 2024 is a benefit of 2 percentage points and 1 percentage point related to prior year favorable developments, respectively.

Insurance Related Expenses

For the year ended December 31, 2025, insurance related expenses were $131.3 million, an increase of $42.5 million, or 48%, compared to $88.8 million for the year ended December 31, 2024. The increase was due primarily to an increase in net acquisition expenses of $41.3 million due to increased premium retention and higher volume.

Technology and Development Expenses

For the year ended December 31, 2025, technology and development expenses were $32.5 million, an increase of $1.8 million, or 6%, compared to $30.7 million for the year ended December 31, 2024. The increase was due primarily to higher employee-related costs of $1.2 million, reflecting an increase in headcount during the period.

Sales and Marketing Expenses

For the year ended December 31, 2025, sales and marketing expenses were $33.5 million, a decrease of $17.7 million, or 35%, compared to $51.2 million for the year ended December 31, 2024. The decrease was primarily driven by lower employee-related costs of $10.2 million, including a decrease in stock-based compensation of $4.4 million, reflecting a decrease in headcount due primarily to the sale of our homebuilder distribution network in the third quarter of 2025 and the sale of First Connect in the fourth quarter of 2024. The decrease was also attributable to lower amortization of acquired intangible assets of $2.9 million and a decrease in contingent consideration of $2.1 million primarily related to the sale of our homebuilder distribution network in the third quarter of 2025.

General and Administrative Expenses

For the year ended December 31, 2025, general and administrative expenses were $67.1 million, a decrease of $3.6 million, or 5%, compared to $70.7 million for the year ended December 31, 2024. The decrease was due

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primarily to lower legal costs of $4.9 million, partially offset by higher consultant costs of $1.2 million and increased employee related costs of $0.8 million.

Impairment and Restructuring Charges

For the year ended December 31, 2025, impairment and restructuring charges were $5.0 million, compared to $3.6 million for the year ended December 31, 2024. The charges in 2025 primarily consisted of the impairment of capitalized software determined to have no future useful life following the sale of our homebuilder distribution network, as well as the impairment of a lease right-of-use asset related to the termination of leased office space. The charges in 2024 primarily related to the impairment of a lease right-of-use asset from the abandonment of leased office space.

Gain on Sale of Business

For the year ended December 31, 2025, we recognized a gain on sale of $95.0 million related to the sale of our homebuilder distribution network. For the year ended December 31, 2024, we recognized gains on sale of $46.1 million related to our sale of First Connect, and $8.2 million related to the sale of our subsidiary, Mainsail.

Interest and Other (Income) Expense, net

For the year ended December 31, 2025, we recognized interest and other expense of $1.0 million, compared to other income of $0.1 million for the year ended December 31, 2024. The change was due primarily to interest expense on our surplus note entered into during the fiscal year 2025.

Income Taxes

For the year ended December 31, 2025, income tax expense was $0.7 million, a decrease of $0.5 million compared to an expense of $1.2 million for the year ended December 31, 2024. The decrease was due primarily to a reduction in current expense for state income taxes.

Net Income Attributable to Noncontrolling Interest, net of tax

For the year ended December 31, 2025, net income attributable to noncontrolling interest, net of tax was $4.9 million, a decrease of $7.0 million compared to $11.9 million for the year ended December 31, 2024. The decrease was due primarily to the elimination of the remaining noncontrolling interests related to the sale of our homebuilder distribution network.

Net Income (Loss) Attributable to Hippo

For the year ended December 31, 2025, net income attributable to Hippo was $57.7 million, an increase of $98.2 million compared to $40.5 million loss for the year ended December 31, 2024 due to the factors described above.

Key Operating and Financial Metrics and Non-GAAP Measures

We regularly review the following operating and financial metrics to evaluate our business, measure our performance, identify trends in our business, prepare forecasts, and make capital allocation and strategic decisions. Certain metrics discussed below are non-GAAP financial measures. Management uses non-GAAP measures to evaluate operating performance and trends that may not be apparent from GAAP results alone. Non-GAAP measures should be considered supplemental to, and not a substitute for, the most directly comparable GAAP measures, and may not be comparable to similarly titled measures used by other companies. Reconciliations of the non-GAAP measures to the most directly comparable GAAP measures are provided below. For certain non-GAAP financial measures that are expressed as ratios or per-share amounts, the reconciliation to the most directly comparable GAAP financial measure is provided through the calculation of the measure using GAAP components, as presented below.

2025 Metric Framework Updates

During 2025, we refined the way we describe performance to align our disclosures with (i) our current operating strategy, (ii) changes in our business mix, including the sale of our home distribution network and our independent agent platform First Connect, and (iii) internal performance measurement. Specifically, we have shifted our focus toward metrics that more closely correlate with financial performance under our current operating strategy

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and capital allocation approach. Additionally, as our business has matured, we believe that other metrics such as gross written premium, net written premium, net earned premium, and commission income more effectively reflect the core operating drivers and provide investors with a clearer view of our performance and growth. Accordingly:

•We no longer report Total Generated Premium (“TGP”) beginning in the first quarter of 2025.

•We began reporting adjusted net income (loss) as a performance measure in the second quarter of 2025.

•We discontinued reporting adjusted EBITDA and gross loss ratio beginning in the third quarter of 2025 and now emphasize expense ratio, combined ratio, and diluted adjusted earnings (loss) per share, which we believe improve comparability and more closely align with industry practice among publicly traded property and casualty insurers.

For periods prior to these changes, we continue to present prior-period amounts where helpful for comparability; however, discontinued metrics are not updated in our periodic filings.

How we evaluate performance

We evaluate performance on both a GAAP basis and, given the nature of our business, through insurance-specific non-GAAP operating metrics, which include a combination of (i) growth and mix metrics, (ii) underwriting performance metrics, and (iii) profitability, return and capital efficiency metrics.

The table below summarizes selected operating, growth and mix, underwriting, and profitability metrics that management uses to evaluate performance across periods.

Years Ended December 31,

2025

2024

2023

(in millions, except per share data)

Gross written premium

$

1,108.6 

$

892.4 

$

847.3 

Ceded written premium

(686.3)

(519.8)

(687.7)

Net written premium

422.3 

372.6 

159.6 

Total revenue

468.6 

372.1 

209.7 

Net income (loss)

57.7 

(40.5)

(273.1)

Adjusted net income (loss)(1)

17.8 

(20.3)

(178.0)

Net income (loss) per share attributable to Hippo, basic

2.28 

(1.64)

(11.58)

Net income (loss) per share attributable to Hippo, diluted

2.22 

(1.64)

(11.58)

Diluted adjusted earnings (loss) per share(1)

0.68 

(0.82)

(7.55)

Annualized adjusted return on equity(1)

4 

%

(5)

%

(37)

%

Net loss ratio

60 

%

77 

%

169 

%

Catastrophe loss ratio

15 

%

21 

%

83 

%

Non-catastrophe loss ratio

45 

%

56 

%

86 

%

Expense ratio

53 

%

61 

%

192 

%

Combined ratio

113 

%

138 

%

361 

%

Book value per share

$

16.97 

$

14.56 

$

15.65 

Tangible book value per share(1)

$

14.76 

$

13.88 

$

14.52 

(1) Indicates a non-GAAP financial measure.

Growth and mix metrics

Gross Written Premium

Gross written premium (“GWP”) is the amount received or to be received for insurance policies written or assumed by us and our affiliates as a carrier or captive reinsurer, without reduction for policy acquisition costs, reinsurance costs, or other deductions. The volume of our gross written premium in any given period is generally influenced by:

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•New business submissions;

•Binding of new business submissions into policies;

•Bound policies going effective;

•Renewals of existing policies; and

•Average size and premium rate of bound policies.

Ceded Written Premium

Ceded written premium (“CWP”) is the amount of gross written premium written or assumed by us and our affiliates as a carrier that we cede to reinsurers. We enter into reinsurance contracts to limit our exposure to losses, as well as to provide additional capacity for growth. Ceded written premium is treated as a reduction from gross written premium. The volume of our ceded written premium is impacted by the level of our gross written premium and decisions we make to increase or decrease retention levels.

Net Written Premium

Net written premium (“NWP”) is calculated as the amount of gross written premium written less ceded written premium.

Management uses growth and mix metrics to assess growth trends, changes in business mix, retention, and the scale of underwriting activities.

The following table summarizes our gross written premiums and net written premiums by line of business:

Years Ended December 31,

2025

2024

2023

GWP

NWP

GWP

NWP

GWP

NWP

(in millions)

Line of Business

Homeowners

$

379.2 

$

255.0 

$

423.1 

$

307.2 

429.1 

$112.6

Renters

174.9 

101.0 

146.9 

24.6 

118.9 

18.3

Commercial Multi-Peril

264.6 

66.1 

151.5 

29.1 

125.8 

14.1

Casualty

263.8 

8.6

137.6

1.9

141.1 

3.5

Other

26.1 

(8.4)

33.3 

9.8 

32.4 

11.1

Total

$

1,108.6 

$

422.3 

$

892.4 

$

372.6 

$

847.3 

$

159.6 

2025 compared to 2024

For the year ended December 31, 2025, gross written premium was $1,108.6 million, an increase of $216.2 million, or 24%, compared to $892.4 million for the year ended December 31, 2024. The increase was primarily driven by growth in our Commercial Multi-Peril, Casualty, and Renters lines of business, partially offset by a decline in the Homeowners line reflecting continued diversification of the Company’s premium base. This growth was supported by increased volumes from existing MGA programs and expansion into new program relationships

For the year ended December 31, 2025, net written premium was $422.3 million, an increase of $49.7 million, or 13%, compared to $372.6 million for the year ended December 31, 2024. The increase was primarily driven by higher gross written premiums while changes in net written premium relative to gross written premium were influenced by retention levels and reinsurance arrangements.

2024 compared to 2023

For the year ended December 31, 2024, gross written premium was $892.4 million, an increase of $45.1 million, or 5%, compared to $847.3 million for the year ended December 31, 2023. The increase was due primarily to the growth in our Renters and Commercial Multi-Peril lines of business, partially offset by a decline in the Homeowners line, reflecting continued diversification of the Company’s premium base.

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For the year ended December 31, 2024, net written premium was $372.6 million, an increase of $213.0 million, or 133%, compared to $159.6 million for the year ended December 31, 2023. The increase was due primarily an increase in premium retention on our Homeowners line of business due reflecting our confidence in the portfolio’s underwriting performance.

Net retention, calculated as net written premium divided by gross written premium, was 38%, 42%, and 19%, for the years ended December 31, 2025, 2024, and 2023 respectively.

Underwriting performance metrics

Net Loss and Loss Adjustment Expense ratios

Catastrophe loss ratio, expressed as a percentage, is the ratio of catastrophe losses and LAE to the net earned premium.

Non-catastrophe loss ratio, expressed as a percentage, is the ratio of the net non-catastrophe losses and LAE to the net earned premium.

Net loss ratio, expressed as a percentage, is the ratio of the net losses and LAE to the net earned premium.

Management uses these metrics to assess underwriting performance, evaluate pricing adequacy, risk selection, portfolio quality and trends in loss experience.

Losses and loss adjustment expenses consisted of the following components during the respective periods:

Years Ended December 31,

2025

2024

2023

(in millions)

Catastrophe losses

$

61.5 

$

58.0 

$

89.2 

Non-catastrophe losses

168.4 

151.0 

92.5 

Total losses and loss adjustment expenses

$

229.9 

$

209.0 

$

181.7 

Net earned premium

380.1

272.5

107.5

Net loss ratio

60 

%

77 

%

169 

%

Catastrophe loss ratio

15 

%

21 

%

83 

%

Non-catastrophe loss ratio

45 

%

56 

%

86 

%

Expense Ratio

Expense ratio, expressed as a percentage, is the ratio of insurance related expenses, technology and development expenses, sales and marketing expenses, and general and administrative expenses, net of commission income, net service and fee income, to net earned premiums. Management uses this metric to evaluate operating leverage, cost efficiency, effectiveness of pricing, and expense management actions. Other companies may define expense ratio differently

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Expense ratio is calculated as follows:

Years Ended December 31,

2025

2024

2023

(in millions)

Net earned premium

$

380.1 

$

272.5 

$

107.5 

Net expenses:

Insurance related expenses

$

131.3 

$

88.8 

$

79.1 

Technology and development expenses

32.5 

30.7 

47.0 

Sales and marketing expenses

33.5 

51.2 

80.1 

General and administrative expenses

67.1 

70.7 

79.6 

Less: commission income, net and service and fee income

(63.1)

(75.2)

(79.1)

Total net expenses

$

201.3 

$

166.2 

$

206.7 

Expense ratio

53 

%

61 

%

192 

%

Combined Ratio

Combined ratio is defined as the sum of the net loss ratio and the expense ratio. Management uses the combined ratio as a comprehensive measure of underwriting profitability. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss. Management uses this metric to evaluate our operating performance.

Years Ended December 31,

2025

2024

2023

Expense ratio

53 

%

61 

%

192 

%

Net loss ratio

60 

%

77 

%

169 

%

Combined ratio

113 

%

138 

%

361 

%

Profitability, return and capital efficiency metrics

Adjusted Net Income (Loss)

Adjusted Net Income (Loss) is a non-GAAP financial measure, defined as net income (loss) 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 define Adjusted Net Income (Loss) as net income (loss) adjusted for, as applicable, (i) depreciation and amortization, (ii) stock-based compensation expense, (iii) the impact of other non-cash fair market value adjustments, (iv) impairment and restructuring related expenses, (v) gain or loss on the sale of a business, and (vi) other one-off transactions, which primarily include certain legal fees and settlement costs, that we consider to be unique in nature, 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 exclude the impact of depreciation and amortization, stock-based compensation expense, and non-cash fair market value adjustments, because these are non-cash expenses or non-cash fair value adjustments and we believe that excluding these items provides meaningful information regarding performance and ongoing cash-generation potential. We exclude impairment and restructuring related expenses, gain or loss on sale of business, and other one-off transactions because such expenses are periodic in nature and have no direct correlation to the cost of operating our business on an ongoing basis that we consider to be unique in nature.

Management uses this measure evaluate our underlying business performance. Adjusted net income (loss) does not reflect the overall profitability of our business.

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Shown below is the adjusted net income (loss) for the following periods and a reconciliation of this measure of performance to net income (loss) as presented in the consolidated statements of operations and comprehensive income (loss):

Years Ended December 31,

2025

2024

2023

(in millions)

Net income (loss) attributable to Hippo

$

57.7 

$

(40.5)

$

(273.1)

Adjustments:

Depreciation and amortization

20.4 

23.2 

$

19.8 

Stock-based compensation

29.3 

38.2 

57.5 

Fair value adjustments

(0.6)

1.7 

4.5 

Other one-off transactions

1.0 

7.9 

7.8 

Impairment and restructuring charges

5.0 

3.6 

5.5 

Gain on sale of a business

(95.0)

(54.4)

— 

Adjusted net income (loss)

$

17.8 

$

(20.3)

$

(178.0)

Diluted Adjusted Earnings (Loss) per Share

Diluted Adjusted Earnings (Loss) per Share is a non‑GAAP financial measure defined as adjusted net income (loss) 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. Management uses this measure to assess performance on a per-share basis across periods. Diluted adjusted earnings (loss) per share should not be viewed as a substitute for diluted earnings (loss) per share calculated in accordance with GAAP, and other companies may define diluted adjusted earnings (loss) per share differently.

Diluted adjusted earnings (loss) per share is calculated as follows:

Years Ended December 31,

2025

2024

2023

(in millions, except share and per share data)

Adjusted net income (loss)

$

17.8 

$

(20.3)

$

(178.0)

Weighted average common shares outstanding, diluted(1)

26,011,391 

24,699,913 

23,578,922 

Diluted adjusted earnings (loss) per share

$

0.68 

$

(0.82)

$

(7.55)

(1)For additional information refer to Note 17, Net Income (Loss) Per Share Attributable to Common Stockholders, of the audited consolidated financial statements.

Annualized Adjusted Return on Equity

Annualized adjusted return on equity is a non‑GAAP financial measure defined as adjusted net income (loss) expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. Management uses this measure to evaluate capital efficiency and returns generated on deployed capital. Annualized adjusted return on equity should not be viewed as a substitute for return on equity calculated using unadjusted GAAP numbers, and other companies may define adjusted return on equity differently.

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Annualized adjusted return on equity is calculated as follows:

Years Ended December 31,

2025

2024

2023

(in millions)

Annualized adjusted net income (loss)

$

17.8 

$

(20.3)

$

(178.0)

Average Hippo stockholders’ equity

399.1 

370.0 

483.9 

Annualized adjusted return on equity

4 

%

(5)

%

(37)

%

Tangible Book Value Per Share

Tangible Book Value Per Share is a non-GAAP financial measure defined as total stockholders’ equity, less intangible assets and capitalized internal use software, divided by the outstanding number of shares of our common stock at the end of the relevant period. Management uses this measure to evaluate changes from period to period in book value per share exclusive of changes in intangible assets in order to assess capital position and balance sheet strength. Tangible book value per share should not be viewed as a substitute for book value per share calculated in accordance with GAAP, and other companies may define tangible book value per share differently.

Shown below are the tangible book value per share for the following periods and a reconciliation of this measure of performance to Hippo stockholders’ equity as presented in the consolidated balance sheet.

December 31,

2025

2024

(in millions, except share and per share data)

Hippo stockholders’ equity

$

436.1 

$

362.1 

Less: Intangible assets

13.8 

17.0 

Less: Capitalized internal use software

43.0 

48.1 

Tangible stockholders’ equity

$

379.3 

$

297.0 

Shares outstanding

25,699,704 

24,866,803 

Tangible book value per share

$

14.76 

$

11.94 

Liquidity and Capital Resources

Sources of Liquidity

Our existing sources of liquidity include cash and cash equivalents and marketable securities. As of December 31, 2025, we had $218.3 million of cash, $31.8 million of restricted cash, and $445.9 million of available-for-sale fixed income securities and short-term investments.

In addition, we are a member of the Federal Home Loan Bank (FHLB) of New York, which provides secured borrowing capacity. Our borrowing capacity as of December 31, 2025, is $37.7 million, and there were no outstanding amounts under this agreement.

The Company issued a surplus note on June 2, 2025 in the amount of $50.0 million. The surplus note issuance provides additional statutory capital and further supports our operational and growth initiatives.

To date, we have funded operations primarily with issuances of convertible preferred stock, convertible promissory notes, common stock and a surplus note, as well as from asset and business dispositions and revenue. Until we can generate sufficient revenue and other income to cover operating expenses, working capital and capital expenditures, we expect the funds raised as discussed above to fund our cash needs. Our capital requirements depend on many factors, including the volume of issuances of insurance policies, the timing and extent of spending to support research and development efforts, investments in information technology systems, and the expansion of sales and marketing activities. In the future, we may raise additional funds through the issuance of debt or equity securities or through borrowing. We cannot assure that such funds will be on favorable terms, or available at all.

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Dividend Restrictions

The maximum amount of dividends that can be paid by all property and casualty insurance companies within the group without prior approval of their respective insurance commissioner in a 12 month period, measured retrospectively from the date of payment, is $29.9 million, $34.5 million and $26.3 million as of years ended December 31, 2025, 2024, and 2023, respectively.

The Company’s insurance subsidiary in the Cayman Islands, RHS, is regulated by the Cayman Islands Monetary Authority (“CIMA”). CIMA must be given advance notice of any dividend payments. At December 31, 2025, 2024, and 2023, approximately $33.5 million, $32.3 million, and $18.4 million respectively, of excess capital were available for the payment of dividends contingent on receiving the prior approval of CIMA. Dividend distributions to RH Solutions’ stakeholders are recognized in the period in which the dividends are declared. In accordance with the terms of the Insurance (Capital and Solvency) (Class B, C, and D Insurers) Regulations, 2012, as a Class B(iii) insurer under the Law, RHS is required to maintain the Prescribed Capital Requirement (“PCR”) of $11.5 million, which is based on net earned premium during the fiscal year.

Cash Flows

The following table summarizes our cash flows for the periods presented (in millions):

Years Ended December 31,

2025

2024

2023

Change

(in millions)

Net cash provided by (used in):

Operating activities

$

9.2 

$

47.5 

$

(92.4)

$

(38.3)

Investing activities

$

(11.2)

$

30.3 

$

57.6 

$

(41.5)

Financing activities

$

19.3 

$

(40.1)

$

(14.6)

$

59.4 

Operating Activities

Cash provided by operating activities was $9.2 million for the year ended December 31, 2025, a decrease of $38.3 million, from cash provided by operating activities of $47.5 million for the year ended December 31, 2024. The decrease was due primarily to a decrease in cash provided by working capital, partially offset by an increase in net income.

Variations in operating cash flows between periods are primarily driven by variations in our gross and ceded written premiums and the volume and timing of premium receipts, claim payments, reinsurance payments, and reinsurance recoveries on paid losses. In addition, fluctuations in losses and loss adjustment expenses and other insurance operating expenses impact operating cash flows.

Investing Activities

Cash used in investing activities was $11.2 million for the year ended December 31, 2025, due primarily to purchases of investment securities, partially offset by maturities of investment securities and the proceeds from the sale of business, net of cash disposed.

Cash provided by investing activities was $30.3 million for the year ended December 31, 2024, due primarily to the maturities of investment securities and proceeds from the sale of a business, partially offset by purchases of investment securities.

Financing Activities

Cash provided by financing activities was $19.3 million for the year ended December 31, 2025, primarily driven by proceeds from the surplus note partially offset by share repurchases under our program, taxes paid related to net share settlement of RSUs, distributions to noncontrolling interests, and changes in fiduciary liabilities.

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Cash used in financing activities was $40.1 million for the year ended December 31, 2024, primarily driven by cash paid for share repurchases, distributions to noncontrolling interests, changes in fiduciary liabilities, and taxes paid related to net share settlement of RSUs. This was partially offset by proceeds from common stock issuances.

Contractual Obligations and Commitments

Our material cash requirements from known contractual and other obligations primarily relate to purchase commitments, lease payments, our surplus note, and unpaid loss and loss adjustment expense. The estimation of the unpaid losses and loss adjustment expenses is based on various complex and subjective judgments. Actual losses paid may differ, perhaps significantly, from the reserve estimates reflected in our consolidated financial statements. Similarly, the timing of payment of our estimated losses is not fixed and there may be significant changes in actual payment activity. The assumptions used in estimating the likely payments due by period are based on our historical claims payment experience and industry payment patterns, but due to the inherent uncertainty in the process of estimating the timing of such payments, there is a risk that the amounts paid can be significantly different from the amounts disclosed.

Payment due by period

2026

2027

2028

2029

2030 and thereafter

(in millions)

Operating activities

Estimated gross payments for losses and loss adjustment expenses(1)

$

209.2 

$

78.8 

$

42.9 

$

23.3 

$

16.5 

Lease obligations

3.1 

1.4 

0.1 

— 

— 

Financing activities

Surplus note

— 

— 

— 

— 

50.0 

Interest from surplus note

4.8 

4.8 

4.8 

4.8 

49.9 

Total contractual obligations and commitments

$

217.1 

$

85.0 

$

47.8 

$

28.1 

$

116.4 

(1) The estimated expected contractual commitments related to the reserves for losses and loss adjustment expenses are          presented on a gross basis (i.e., not reflecting any corresponding reinsurance recoverable amounts that would be due to us). It should be noted that until a claim has been presented to us, determined to be valid, quantified and settled, there is no known obligation on an individual transaction basis, and while estimable in the aggregate, the timing and amount contain significant uncertainty

Financial Condition

Balance sheet considerations

Material changes in our balance sheet during 2025 were driven by underwriting activity, changes in premiums and risk retention, movements in loss and loss adjustment expense reserves, and changes in invested assets. These changes are discussed in the consolidated financial statements and related notes.

Total stockholders’ equity as of December 31, 2025, was $436.1 million, compared to $362.1 million as of December 31, 2024. Stockholders’ equity increased due primarily to net income we earned for the period and activity related to stock-based compensation. Stock-based compensation expense is treated as an additional paid-in-capital and increases stockholders’ equity. These amounts were partially offset by share repurchases and shares withheld related to net share settlements.

Investment Portfolio

The aggregate value of investments experienced an increase, principally attributable to the growth in fixed maturities classified as available for sale and measured at fair value. The expansion in fixed maturities, available for sale, at fair value was predominantly driven by an augmentation in holdings of U.S. government and corporate securities. The principal objective of the investment portfolio is to provide sufficient resources to satisfy anticipated

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future claim obligations. This strategic allocation reflects a prudent approach to asset management, ensuring the portfolio is positioned to meet the financial requirements associated with claim settlements.

Off-Balance sheet arrangements

We do not have any off-balance-sheet arrangements that have or are reasonably likely to have a material effect on our financial condition, results of operations, liquidity, or capital resources.

Critical Accounting Policies and Estimates

We prepared our consolidated financial statements in accordance with GAAP, which requires the use of estimates and assumptions. Our consolidated financial statements include amounts that, either by their nature or due to requirements of GAAP, are determined using best estimates and assumptions. Management has discussed and reviewed the development, selection, and disclosure of critical accounting estimates with the Audit Committee of our board of directors. While we believe that the amounts included in our consolidated financial statements reflect our best judgment, actual amounts could ultimately materially differ from those currently presented.

For further information, see Note 1 — Description of Business and Summary of Significant Accounting Policies in the Notes to the audited consolidated financial statements.

Loss and Loss Adjustment Expense Reserve

Loss and Loss Adjustment Expense Reserves

Recorded loss and loss adjustment expense reserves represents management’s best estimate of the amounts yet to be paid for all loss and loss adjustment expenses that will be paid on claims that occurred during the period and prior, whether those claims are currently known or unknown. We hold a provision for loss and loss adjustment expense reserve as of a given date based on actuarial analysis.

Loss and loss adjustment expense reserves are the amount of ultimate loss and loss adjustment expense less the paid amounts as of the balance sheet date.

Ultimate loss and loss adjustment expense is the sum of the following items:

1.Loss and loss adjustment expense paid through a given evaluation date

2.Case reserves for loss and loss adjustment expense for losses that have been reported but not yet paid as of a given evaluation date    

3.IBNR for loss and loss adjustment expense include an estimate for future loss payments on incurred claims not yet reported and for expected development on reported claims

Case reserves are established within the claims adjustment process based on all known circumstances of a claim at the time. In addition, IBNR reserves are established by the Company based on reported loss and loss adjustment expenses and estimates of ultimate loss and loss adjustment expenses based on generally accepted actuarial reserving techniques that consider quantitative loss experience data and qualitative factors as appropriate.

Inherent in the estimates of ultimate loss and loss adjustment expenses are expected trends in claims severity and frequency among other factors that could vary significantly as claims are settled. The Company’s loss and loss adjustment expense reserves are continually reviewed, and adjustments, if any, are reflected in current operations in the consolidated statements of operations and comprehensive income (loss) in the period in which they become known. The establishment of new loss and loss adjustment expense reserves or the adjustment of previously recorded loss and loss adjustment expense reserves could result in significant positive or negative changes to our financial condition for any particular period. While the Company believes that it has made a reasonable estimate of loss and loss adjustment expense reserves, the ultimate loss experience may not be as reliably predicted as may be the case with other insurance expenses, and it is possible that actual loss and loss adjustment expenses will be higher or lower than the loss and loss adjustment reserve amount recorded by the Company.

Information Used in the Determination of the Loss and Loss Adjustment Expense Reserve

In order to estimate the provision for the recorded loss and loss adjustment expense reserves, we use information developed from both internal and independent external sources. This includes internal and external loss

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and claim count emergence patterns, pricing change information, internal and external loss and exposure trend information, as well as underwriting process changes. In addition, we use commercially available risk analysis models, and overall market share assumptions to estimate our loss and loss adjustment expense reserves related to specific loss events.

Actuarial Methods Used in the Determination of the Loss and Loss Adjustment Expense Reserve

When the applicable information has been obtained, we use several actuarial methods to create estimates of the ultimate incurred losses in connection with the underwritten business. Our actuarial analysis uses inputs from our underwriting and claims departments, including pricing assumptions. The actuarial methods used to estimate loss and loss adjustment expense reserves are reported and/or paid loss and claim count development methods as well as reported and/or paid Bornhuetter-Ferguson methods.

As appropriate, unallocated loss adjustment expenses are estimated using a Paid-to-Paid Method, whereby, historical paid unallocated loss adjustment expense is compared as a ratio to the paid loss and allocated loss adjustment expense amounts for the same calendar period. Based on this information, selected ratios are applied to the case reserve and estimated IBNR for loss and allocated loss adjustment expenses to estimate the provision for the unpaid unallocated loss adjustment expense.

Based on the methods used for each accident period, estimates of ultimate loss and allocated loss adjustment expenses are selected. The Chief Executive Officer and Chief Financial Officer meet on a quarterly basis to review the recommendations made by the actuarial department, and determine the best estimate to be recorded for the reserve for loss and loss adjustment expense reserves on the balance sheet.

Significant Assumptions Employed in the Recording of the Loss and Loss Adjustment Expense Reserve

The most significant assumptions used in the determination of the recorded reserve for loss and loss adjustment expenses as of December 31, 2025 are historical aggregate claim reporting and payment patterns, which are assumed to be indicative of future loss development and trends. Additionally, claim counts are used for analyses relating to natural disasters, such as hurricanes, earthquakes, wind and hail events, and wildfires as losses from these events are inherently more difficult to estimate due to the potential exposure of the catastrophic events. Other assumptions considered include information developed from internal and independent external sources such as premium, rate and cost trends, litigation and regulatory trends, legislative activity, climate change, and social and economic patterns.

The above assumptions most significantly influence our determination of initial expected loss ratios and expected loss reporting and payment patterns which are the key inputs that impact variability in the estimate of the reserve for loss and loss adjustment expenses. While there can be no assurance that any of the above assumptions as utilized will prove to be correct, we believe that these assumptions represent a realistic and appropriate basis for estimating the reserve for loss and loss adjustment expense reserves.

The following table summarizes gross and net reserves for unpaid losses and LAE as of December 31, 2025 and 2024:

December 31,

2025

2024

Gross

Net

Gross

Net

(in millions)

Losses and loss adjustment reserves

IBNR

$

255.9 

$

76.1 

$

227.3 

$

75.2 

Case reserves

164.5 

55.3 

122.7 

44.9 

Total reserves

$

420.4 

$

131.4 

$

350.0 

$

120.1 

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Sensitivity Analysis

The table below shows the impact on the loss and loss adjustment expense reserve based on reasonably likely changes to our held unpaid amounts after consideration of our proportional and non-proportional reinsurance as of December 31, 2025 (in millions).

10% increase in

ultimate loss and

loss adjustment

expenses

10% decrease in

ultimate loss and

loss adjustment

expenses

Impact on:

Loss and loss adjustment expense reserves, net

$

14.2 

$

(14.4)

For additional information refer to Note 9, Losses and Loss Adjustment Expense Reserves of the audited consolidated financial statements.

Reinsurance Recoverable

We also estimated the amount of reinsurance recoverable from reinsurance contracts. Reinsurance assets include reinsurance recoverable on unpaid loss and loss adjustment expense reserves that are estimated as part of our loss reserving process and, consequently, are subject to similar judgments and uncertainties. This estimate requires significant judgment for which key considerations include:

•paid and unpaid amounts recoverable;

•any balances in dispute or subject to legal collection;

•the financial wellbeing of a reinsurer (i.e. insolvent, liquidated, in receivership or otherwise subject to formal or informal regulatory restriction);

•the likelihood of collection of the reinsurance recovery considering factors such as, amounts outstanding, length of collection periods, disputes, any collateral or letters of credit held and other relevant factors.

For ceded reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit.

For additional information refer to Note 10, Reinsurance, to the audited consolidated financial statements.

Recoverability of Our Net Deferred Tax Asset

The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion, that it is more likely than not, that all or some portion of the deferred tax asset will be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed.

We consider a number of factors to reliably estimate future taxable income so we can determine the extent of our ability to realize net operating loss (“NOL”), R&D tax credits, realized capital loss and other carryforwards. These factors include forecasts of future income for each of our businesses and actual and planned business and operational changes, both of which include assumptions about future macroeconomic and company-specific conditions and events. We subject the forecasts to stresses of key assumptions and evaluate the effect on tax attribute utilization.

As of December 31, 2025, we have U.S. federal and state NOL carryforwards of $718.9 million and $488.8 million, respectively. We have $166.0 million of dual consolidated losses in a 953(d) company, RH Solutions Insurance (Cayman) Ltd. The provisions of the Tax Cuts and Jobs Act of 2017 eliminated the 20-year carryforward period so that federal NOLs generated in tax years after December 31, 2017 do not expire. For such

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amounts generated prior to 2018, the 20-year carryforward periods continue to apply. For additional information refer to Note 16, Income Taxes, to the audited consolidated financial statements.

For additional information refer to Note 16, Income Taxes, to the audited consolidated financial statements.

Recent Accounting Pronouncements

The information set forth under Note 1 to the consolidated financial statements under the caption “Description of Business and Summary of Significant Accounting Policies” is incorporated herein by reference.