Hippo Holdings Inc. (NYSE: HIPO) saw its stock price plummet 6.54% in after-hours trading on Wednesday following the release of its disappointing first-quarter 2025 financial results. The home insurance group, focused on proactive home protection, reported a net loss of $48 million and missed analyst estimates on both earnings per share and revenue.

The company's quarterly losses came in at $(1.91) per share, significantly missing the analyst consensus estimate of $(0.50) by 282 percent. This represents a 29.93 percent increase in losses compared to the same period last year. Hippo's revenue for the quarter stood at $110 million, falling short of the analyst consensus estimate of $114.65 million by 4.06 percent, despite showing a 29.26 percent increase from the previous year.

The disappointing results were largely attributed to the impact of Los Angeles wildfires, which contributed 56 percentage points to the company's gross loss ratio. Hippo's consolidated net loss ratio reached 106%, with the LA wildfires accounting for 51 percentage points. Despite these challenges, the company highlighted some positive developments, including a 35% year-over-year increase in gross written premium driven by its homebuilder channel and a 21% increase in written premium outside of the Hippo Home Insurance Program. Additionally, Hippo announced it has signed an agreement to raise a $50 million surplus note, pending regulatory approval, to support the growth of diversified product lines.