SEATTLE, May 19, 2025--(BUSINESS WIRE)--Porch Group, Inc. ("Porch" or "the Company") (NASDAQ: PRCH), a new kind of homeowners insurance company, today announced the continued outstanding performance of Homeowners of America Insurance Company ("HOA"), per the AM Best Market Share Report1, as well as continued exceptional loss ratio performance at HOA and the Porch Reciprocal Exchange in Q1 2025.
In 2024, the final year of Porch’s ownership of HOA, the carrier was ranked number 1 in Texas for Direct Combined Ratio2 performance among homeowners insurance carrier peers. Additionally, HOA ranked third nationally, its best ever performance.
Porch’s underwriting strength reflects Porch’s unique data advantage including insights into 90% of US properties, continued underwriting improvements made over the last several years, and rigorous risk selection to support long-term, sustainable profitability.
"The AM Best report for 2024 underscores another year of exceptional underwriting discipline and execution," said Matt Ehrlichman, Porch Group Chief Executive Officer. "Similar to the strong performance in 2023, we are proud to see HOA consistently and meaningfully outperform the market in 2024. Utilizing unique property data to create underwriting advantages highlights the go forward ability of the Porch Reciprocal Exchange to pay attractive management fees to Porch while continuing to build surplus and grow premiums."
The strong 2024 loss ratio performance continued into the first quarter of 2025. The Porch Reciprocal Exchange, which includes HOA, achieved a 46% gross loss ratio, a substantial improvement as compared to its 71% gross loss ratio in Q1 2024. The 46% gross loss ratio included further improvement of non-catastrophic weather losses, demonstrated with a 17% attritional loss ratio in the first quarter.
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Source: AM Best Market Share Report April 2025, showing homeowners peer group. For US carriers with >$350m Direct Written Premium and for Texas carriers with >$50m Direct Written Premium.
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Direct Combined Ratio as defined by AM Best, which is the sum of the Direct Loss and Loss Adjustment Expense Ratio, the Direct Policyholder Dividend Ratio, and the Underwriting Expense Ratio. Direct Combined Ratio Measures the company’s overall underwriting profitability. A Direct Combined Ratio of less than 100 indicates a company is making an underwriting profit.
About Porch Group
Porch Group, Inc. ("Porch") is a new kind of homeowners insurance company. Porch's strategy to win in homeowners insurance is to deploy leading vertical software solutions in select home-related industries, provide the best services for homebuyers including important moving services, leverage unique data for advantaged underwriting, and provide more protection for policyholders.
Certain statements in this release are considered forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although we believe that our plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning our financial outlook and guidance, possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. Forward-looking statements in this release also include expectations regarding whether the Reciprocal is the optimal structure for our insurance business and the benefits financial and otherwise thereof, including any expectations that the reciprocal will result in higher margins and a more predictable financial profile and equip our insurance operations to scale profitably in the future. These statements may be preceded by, followed by, or include the words "believe," "estimate," "expect," "project," "forecast," "may," "will," "should," "seek," "plan," "scheduled," "anticipate," "intend," or similar expressions.
Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements which speak only as of the date hereof. You should understand that the following important factors, among others, could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in our forward-looking statements:
expansion plans and opportunities, and managing growth, to build a consumer brand;
the incidence, frequency, and severity of weather events, extensive wildfires, and other catastrophes;
economic conditions, especially those affecting the housing, insurance, and financial markets;
expectations regarding revenue, cost of revenue, operating expenses, and the ability to achieve and maintain future profitability;
existing and developing federal and state laws and regulations, including with respect to insurance, warranty, privacy, information security, data protection, and taxation, and management’s interpretation of and compliance with such laws and regulations;
the structure, availability, and performance of Porch Reciprocal Exchange (the "Reciprocal")’s and Homeowners of America ("HOA")’s reinsurance programs to protect against loss and maintain their financial stability ratings and a healthy surplus, the success of which are dependent on a number of factors outside management’s control;
the possibility that a decline in our share price would result in a negative impact to the Reciprocal’s surplus position and may require further financial support to enable the Reciprocal to meet applicable regulatory requirements and maintain financial stability rating;
uncertainties related to regulatory approval of insurance rates, policy forms, insurance products, license applications, acquisitions of businesses, or strategic initiative, and other matters within the purview of insurance regulators (including the discount associated with the shares contributed to HOA that were subsequently transferred to the Reciprocal in connection with the closing of the sale of HOA to the Reciprocal);
the ability of the Company and its affiliates to successfully operate and manage the Reciprocal and our ability to successfully operate our businesses alongside a reciprocal exchange;
our ability to implement our plans, forecasts and other expectations with respect to the Reciprocal and to realize expected synergies and/or convert policyholders from our existing insurance carrier business into policyholders of the Reciprocal;
reliance on strategic, proprietary relationships to provide us with access to personal data and product information, and the ability to use such data and information to increase transaction volume and attract and retain customers;
the ability to develop new, or enhance existing, products, services, and features and bring them to market in a timely manner;
changes in capital requirements, and the ability to access capital when needed to provide statutory surplus;
our ability to timely repay our outstanding indebtedness;
the increased costs and initiatives required to address new legal and regulatory requirements arising from developments related to cybersecurity, privacy, and data governance and the increased costs and initiatives to protect against data breaches, cyber-attacks, virus or malware attacks, or other infiltrations or incidents affecting system integrity, availability, and performance;
retaining and attracting skilled and experienced employees;
costs related to being a public company; and
other risks and uncertainties discussed in Part II, Item 1A, "Risk Factors," in our Annual Report on Form 10-K ("Annual Report") for the year ended December 31, 2024, as well as those discussed elsewhere in this release and in subsequent reports filed with the Securities and Exchange Commission ("SEC"), all of which are available on the SEC’s website at www.sec.gov.
We caution you that the foregoing list may not contain all the risks to forward-looking statements made in this release.
You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this release primarily on our current expectations and projections about future events and trends we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors, including those described above and elsewhere in this release. We disclaim any obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.
