Investments

9 Months Ended

Sep. 30, 2025

Investments [Abstract]

Investments

Note 5. Investments

The following table summarizes investment income and realized gains and losses on investments during the periods presented.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Investment income, net of investment expenses	$	2,937	$	3,645	$	8,456	$	10,884
Realized gains on investments	71		172		327		213
Realized losses on investments	(19)		(30)		(319)		(140)
Investment income and realized gains and losses, net of investment expenses	$	2,989	$	3,787	$	8,464	$	10,957

Investments Held by Porch

The following tables summarize the amortized cost, fair value, and unrealized gains and losses of investment securities.

		September 30, 2025
		Amortized Cost		Gross Unrealized				Fair Value
				Gains		Losses
U.S. Treasuries		$	13,469	$	95	$	—	$	13,564
Obligations of states, municipalities and political subdivisions		3,224		49		—		3,273
Corporate bonds		20,433		183		(6)		20,610
Residential and commercial mortgage-backed securities		12,944		113		(2)		13,055
Other loan-backed and structured securities		—		—		—		—
Total investment securities	(1)	$	50,070	$	440	$	(8)	$	50,502

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(1)Represents total investment securities held by our captive reinsurance business as collateral for the benefit of the Reciprocal.

	December 31, 2024
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
U.S. Treasuries	$	27,489	$	34	$	(421)	$	27,102
Obligations of states, municipalities and political subdivisions	12,602		26		(756)		11,872
Corporate bonds	72,996		192		(2,292)		70,896
Residential and commercial mortgage-backed securities	62,721		85		(2,032)		60,774
Other loan-backed and structured securities	12,335		28		(256)		12,107
Total investment securities	$	188,143	$	365	$	(5,757)	$	182,751

The amortized cost and fair value of securities held by our captive reinsurance business at September 30, 2025, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

		September 30, 2025
Remaining Time to Maturity		Amortized Cost		Fair Value
Due in one year or less		$	10,351	$	10,361
Due after one year through five years		19,122		19,347
Due after five years through ten years		7,653		7,739
Due after ten years		—		—
Residential and commercial mortgage-backed securities		12,944		13,055
Other loan-backed and structured securities		—		—
Total	(1)	$	50,070	$	50,502

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(1)Represents total investment securities held by our captive reinsurance business as collateral for the benefit of HOA.

Securities held by our captive reinsurance business with gross unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:

		Less Than Twelve Months				Twelve Months or Greater				Total
As of September 30, 2025		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries		$	—	$	1,361	$	—	$	—	$	—	$	1,361
Obligations of states, municipalities and political subdivisions		—		—		—		—		—		—
Corporate bonds		(6)		4,737		—		—		(6)		4,737
Residential and commercial mortgage-backed securities		(2)		2,037		—		—		(2)		2,037
Other loan-backed and structured securities		—		—		—		—		—		—
Total securities	(1)	$	(8)	$	8,135	$	—	$	—	$	(8)	$	8,135

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(1)Represents total investment securities held by our captive reinsurance business as collateral for the benefit of the Reciprocal.

At September 30, 2025, there were sixteen securities, held by our captive reinsurance business as collateral for the benefit of the Reciprocal, in an unrealized loss position. Of these securities, none had been in an unrealized loss position for 12 months or longer.

	Less Than Twelve Months				Twelve Months or Greater				Total
As of December 31, 2024	Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries	$	(376)	$	7,881	$	(45)	$	525	$	(421)	$	8,406
Obligations of states, municipalities and political subdivisions	(652)		7,738		(104)		1,175		(756)		8,913
Corporate bonds	(2,063)		47,045		(229)		3,100		(2,292)		50,145
Residential and commercial mortgage-backed securities	(1,671)		49,585		(361)		2,691		(2,032)		52,276
Other loan-backed and structured securities	(249)		6,976		(7)		49		(256)		7,025
Total securities	$	(5,011)	$	119,225	$	(746)	$	7,540	$	(5,757)	$	126,765

At December 31, 2024, there were 452 securities in an unrealized loss position.

Investments Held by the Reciprocal (Consolidated VIE)

The following table summarizes the amortized cost, fair value, and unrealized gains and losses of investment securities held by the Reciprocal.

	September 30, 2025
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
U.S. Treasuries	$	9,855	$	79	$	(191)	$	9,743
Obligations of states, municipalities and political subdivisions	11,311		99		(406)		11,004
Corporate bonds	70,123		1,042		(1,017)		70,148
Residential and commercial mortgage-backed securities	71,029		707		(904)		70,832
Other loan-backed and structured securities	16,138		146		(155)		16,129
Total investment securities held by the consolidated VIE	$	178,456	$	2,073	$	(2,673)	$	177,856

The amortized cost and fair value of securities held by the Reciprocal at September 30, 2025, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2025
Remaining Time to Maturity	Amortized Cost		Fair Value
Due in one year or less	$	2,950	$	2,898
Due after one year through five years	36,439		36,237
Due after five years through ten years	35,165		35,097
Due after ten years	16,734		16,663
Residential and commercial mortgage-backed securities	71,030		70,832
Other loan-backed and structured securities	16,138		16,129
Total	$	178,456	$	177,856

Securities held by the Reciprocal with gross unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:

	Less Than Twelve Months				Twelve Months or Greater				Total
As of September 30, 2025	Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries	$	(157)	$	4,988	$	(34)	$	126	$	(191)	$	5,114
Obligations of states, municipalities and political subdivisions	(339)		5,140		(67)		1,157		(406)		6,297
Corporate bonds	(899)		15,645		(118)		1,438		(1,017)		17,083
Residential and commercial mortgage-backed securities	(662)		15,696		(242)		2,035		(904)		17,731
Other loan-backed and structured securities	(151)		2,820		(4)		48		(155)		2,868
Total securities held by the consolidated VIE	$	(2,208)	$	44,289	$	(465)	$	4,804	$	(2,673)	$	49,093

At September 30, 2025, there were 238 securities in an unrealized loss position held by the Reciprocal. Of these securities, 51 had been in an unrealized loss position for 12 months or longer as of September 30, 2025.

We believe there were no fundamental issues, such as credit losses or other factors, with respect to any of our available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. We expect that the securities will not be settled at a price less than par value of the investments. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because we have the ability and intent to hold our available-for-sale investments until a market price recovery or maturity, we do not consider any of our investments to have any decline in fair value due to expected credit losses at September 30, 2025.