Question · Q4 2025
Sid from Jefferies inquired about the drivers of reserve development in the quarter and the expected trend for homeowners renewal premium increases moving forward.
Answer
CFO Guy Zeltser attributed the reserve development primarily to one large homeowners liability loss, clarifying that the full year 2025 saw a positive $10 million release and Q4 itself had positive development from earlier accident year 2025 quarters. He also stated that while another 15% increase in homeowners renewal premiums is not expected, increases will continue in 2026, staying ahead of loss costs due to inflation. President and CEO Richard McCathron added that Hippo is only writing profitable homeowners business and is actively managing to stay ahead of market trends.
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