Hippo Holdings Outlines Growth and Profitability Roadmap Through 2028

Hippo Holdings hosted its 2025 investor day to outline its future growth and profitability strategy. The company's CEO, Rick McCathron, highlighted that Hippo has surpassed its previous three-year financial targets, emphasizing the long-term perspective needed in the insurance industry. Hippo is positioning itself to achieve net income profitability by 2025, with extended targets through 2028 focusing on doubling written premiums and increasing adjusted net income significantly.

Hippo differentiates itself through its focus on modern homeowners insurance, leveraging technology to serve new home buyers and builders efficiently. Additionally, Hippo is expanding its insurance portfolio through a fronting carrier model, diversifying risk across various geographies and product lines. A key development in this strategy is the partnership with Baldwin Insurance Group's subsidiary Westwood, enhancing Hippo's distribution capabilities among major home builders and allowing Hippo to concentrate on underwriting and product innovation.

The Baldwin partnership notably extends Hippo’s reach by granting access to 20 of the top 25 home builders in the U.S., significantly expanding its new home insurance business funnel. This collaboration aligns with Hippo's startup DNA ethos by combining specialized strengths—distribution from Baldwin and product development from Hippo—to capture broader market share.

From a market perspective, Hippo's stock has outperformed the broader market this year despite the volatility experienced since its public listing via a de-SPAC in a competitive IPO environment. The company is committed to disciplined growth reflected in its financial targets including an 18% or greater return on equity by 2028. This positions Hippo as a maturing insurance firm advancing towards sustainable profitability while navigating the evolving insurance market landscape.