Shares of Hippo Holdings Inc. (NYSE: HIPO), the home insurance group focused on proactive home protection, surged 7.07% in pre-market trading on Wednesday after the company reported better-than-expected third-quarter results and announced the sale of a majority stake in its subsidiary First Connect Insurance Services.

Hippo reported Q3 2024 revenue of $95.5 million, up 65% year-over-year and beating analysts' estimates of $94.1 million. The company's net loss attributable to shareholders narrowed significantly to $8.5 million, an 84% improvement compared to the same period last year.

Hippo's Q3 results reflected continued improvement in its core home insurance business, with the HHIP non-weather loss ratio improving by 15 percentage points year-over-year to 52%. The company also achieved better operating leverage, with fixed expenses declining while revenue increased.

In a separate announcement, Hippo revealed that it has sold a majority stake in its subsidiary First Connect Insurance Services to Centana Growth Partners for an initial investment exceeding $60 million. First Connect is an insurtech platform that digitally connects independent agents and carriers, and the strategic transaction will allow it to focus exclusively on enhancing its online platform and market penetration.

"The positive momentum we've built over the past year continued in the third quarter as we took a significant step forward on our path to profitability," said Hippo President and CEO Rick McCathron. "We strengthened our foundation for future growth by continuing to develop our Hippo New Homes Program and delivered our best-ever year-over-year improvement to our HHIP non-weather loss ratio -- positioning us for a successful fourth quarter and sustained growth in 2025 and beyond."