Insurtech Hippo posted third-quarter 2025 net income of $98 million, compared with a net loss of $9 million a year ago during the same period.
San Jose, California-based Hippo’s Q3 combined ratio improved to 100–a 28-point improvement from Q3 2024.
President and CEO Rick McCathron called Q3 a “breakout quarter,” recording a profit for the first time.
“We’re operating as a unified, technology-native platform that’s driving profitable growth, deepening diversification, and positioning us for long-term success,” McCathron said in a statement.
Net income in Q3 was primarily driven by a $91 million net gain on the sale of its homebuilder distribution network to The Baldwin Group, closed in Q3. Hippo also sold its majority stake in First Connect in the fourth quarter of 2024.
Net written premium grew 30% to about $118 million. Hippo, the carrier for over 30 MGA programs in the U.S., said the renters insurance line was the main driver, with growth of $18 million year over year. Renters now comprises 22.4% of Hippo’s net premiums, up from 9.6% at this time a year ago.
Commercial multiperil also makes up more of Hippo’s book of business, growing in Q3 to account for 11.5% of premiums from 2.5% in Q3 2024.
The legal dispute being played out in Norfolk County court came to light a few days after Revoli employee Miguel Reis of Fall River was killed and two others were injured in a trench collapse on South Shore Drive in the popular Massachusetts seacoast town.
One worker managed to escape the trench. The rescue teams providing lifesaving measures were able to save another worker who police said was buried up to his waist. That rescue took five hours.
After the accident, a state coalition of union, health, safety and community advocates called for an investigation of Revoli.
“The company has a troubling history of significant health and safety violations, including prior incidents that raised serious concerns about their commitment to worker safety,” Tatiana Sofia Begault, executive director, of the Massachusetts Coalition for Occupational Safety and Health (MassCOSH), claimed.
Revoli has a history with the federal Occupational Safety and Health Administration (OSHA). OSHA records show there have been six referrals and complaints against Revoli since 2016. Earlier this year Revoli was cited for failing to maintain a safety program that provides for frequent and regular inspections of jobsites, materials, and equipment. In 2023, OSHA cited the firm for an inadequate system to protect employees from potential cave-in from the unsupported walls of an excavation.