Porch Group anticipates a $18 million catastrophic weather impact in the second quarter of 2023, due to extreme weather events in June.
According to Porch, Q2 is often the worst and riskiest weather quarter of the year for the firm.
“The second quarter of 2023 was on track until extreme weather events occurred, including wind, thunderstorm and hail events in Texas in mid and late June, which resulted in an estimated $5 billion in combined industry-wide claims,” Porch explained.
The firm suggested that this will negatively impact operating results in Q2 within the Insurance Segment.
Porch preliminarily estimates the extreme weather resulted in a $18 million loss, net of third-party reinsurance.
“These were uncommon cat weather events compared to historic trends and therefore not included within our full-year 2023 guidance,” Porch added.
Matt Ehrlichman, Porch Group Chief Executive Officer, commented, “I’m proud of our team for serving our customers quickly and effectively after these difficult weather events. At Porch, our experienced underwriters continue to use our unique data and analysis of historic trends to evaluate risk when writing insurance policies.
“Like everyone in the industry, we cannot predict these unfortunate and uncommon weather events, but we will continue to seek to increase prices to ensure we are setup well as we look ahead.
“Outside of this event, our business is performing well, and we continue to expect to launch the Porch Insurance Reciprocal Exchange later this year, once approved by the Texas Department of Insurance.”
The firm also stated it will provide a further update when it reports its Q2 financial results for the period ended June 30, 2023, after markets close on Tuesday, August 8, 2023.
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