Porch Group completes formation of Porch Insurance Reciprocal Exchange

Porch Group, a homeowners insurance and vertical software platform, announced the completed formation of the Porch Insurance Reciprocal Exchange (“PIRE”) and sale of Homeowners of America Insurance Company (“HOA”) to PIRE.

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The final terms of the transaction were consistent with expectations, with Porch selling HOA to PIRE for a purchase price equal to HOA’s December 31, 2024 expected surplus of approximately $105 million, less the existing 2023 surplus note of $49 million and less $9 million of outstanding interest expected to be paid in 2025. This brings the total surplus notes held by Porch to approximately $106 million. With this transaction now complete, going forward all insurance policies, premium and related claims, as well as all HOA assets and liabilities will be owned by PIRE. Porch Group will receive commissions and fees for providing operating and other services to PIRE, which is expected to deliver more predictable and higher-margin financial results for Porch Group Shareholders.

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With PIRE now in place, Porch plans to scale insurance written premiums.

“We are thrilled to announce the formation of the Porch Insurance Reciprocal Exchange, a transformative step in our journey to redefine the homeowner experience while enhancing profitability for Porch shareholders. This is just the beginning of an exciting new chapter. We look forward to delivering exceptional value to our stakeholders and continuing to innovate in the homeowners insurance industry.” – Matt Ehrlichman, Chief Executive Officer.