Porch Group’s HOA Tops AM Best Homeowners Insurance Rankings

Porch Group, Inc. reported strong underwriting performance for its subsidiary Homeowners of America Insurance Company (HOA) in the 2024 AM Best Market Share Report. HOA was ranked first in Texas for direct combined ratio among homeowners insurance carriers and third nationally, marking its best-ever performance. This ranking reflects the company's effective underwriting discipline and execution in the homeowners insurance market.

The company attributes its underwriting success in part to its access to extensive data covering 90% of U.S. properties. This data advantage supports improved risk selection and underwriting improvements implemented over recent years, contributing to sustainable profitability. Porch also operates the Porch Reciprocal Exchange, which includes HOA and has demonstrated continued strong loss ratio performance.

In the first quarter of 2025, the Porch Reciprocal Exchange achieved a 46% gross loss ratio, a significant improvement compared to the 71% seen in the same quarter of 2024. Notably, non-catastrophic weather losses were controlled effectively, with attritional losses accounting for only 17% of the loss ratio in Q1 2025.

The direct combined ratio, as defined by AM Best, combines the loss and loss adjustment expenses, policyholder dividend, and underwriting expense ratios. A ratio below 100 indicates underwriting profitability, and HOA's top rankings demonstrate its ability to maintain profitability in a competitive market.

Porch Group’s strategy revolves around leveraging vertical software solutions, offering services for homebuyers, and utilizing unique property data to enhance underwriting. This integrated approach aims to support sustainable growth and surplus accumulation within its insurance operations.

The company is continuing to optimize its insurance business structure, including the use of a reciprocal exchange to achieve higher margins and a more predictable financial profile. This structure is intended to enable efficient scaling of Porch's insurance operations.

Overall, Porch Group's recent financial performance and strategic focus exemplify evolving underwriting practices driven by data analytics and risk management within the U.S. homeowners insurance industry.