Porch Group, Inc.
Climate Impact & Sustainability Data (2023-04-01 to 2023-06-30)
Reporting Period: 2023-04-01 to 2023-06-30
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- U.S. housing market impacts from higher interest rates, inventory tightening, and affordability challenges.
- Extreme weather events (wind, thunderstorm, hail) in Texas impacting operating results.
- Hardening of the reinsurance markets.
- Allegations of fraudulent activity at Vesttoo Ltd., impacting a reinsurance contract.
Mitigation Strategies
- Moving to 50% reinsurance ceding and not renewing certain higher-risk policies.
- Improving underwriting performance by increasing premiums and claim deductibles.
- Securing supplemental reinsurance coverage ($42 million) and seeking additional coverage.
- Investigating the Vesttoo situation, analyzing impact, and communicating with stakeholders.
- Terminating the reinsurance contract with Vesttoo and seizing available collateral ($47.6 million).
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Extensive wildfires, other catastrophes, volatile weather