Porch Group and Porch Insurance Reciprocal Exchange have entered into definitive agreements to acquire Allied Trust’s insurance operations in a transaction valued at approximately $200 million, including deferred consideration.
Under the agreements, Porch Group will acquire Allied Trust’s managing general agency (MGA) and captive reinsurance entity for $95 million, consisting of $75 million in cash and an expected $20 million in Porch Group shares.
Porch Insurance Reciprocal Exchange will separately acquire Allied Trust’s insurance carrier for an initial cash purchase price of $55 million, subject to adjustments based on the carrier’s financial position at closing. The agreement also includes $50 million in deferred consideration payable within 12 months after closing.
Allied Trust provides homeowners insurance in Louisiana, Texas, North Carolina and South Carolina. Louisiana accounted for nearly half of the company’s premiums in 2025 and would represent a new market for the Reciprocal.
The acquisition is expected to add approximately $200 million in annual written premiums to the Reciprocal and $25 million in adjusted EBITDA, excluding the Reciprocal, during the first full year following closing.
Matt Ehrlichman, CEO of Porch Group, said the acquisition will expand the company’s insurance operations, establish a significant presence in Louisiana and provide access to more than a decade of Allied Trust claims data.
Ehrlichman also said combining Allied Trust’s underwriting experience and claims information with Porch Group’s technology and proprietary data could create opportunities to improve insurance operations and expand distribution.
Following the acquisition, Allied Trust is expected to operate under a structure similar to Porch Group’s existing insurance business. The Reciprocal will own the insurance carrier and remain responsible for premiums, claims, commissions and reinsurance expenses, while Porch Group will earn commissions and fees for providing operating services.
Assuming a January 1, 2027 closing, Porch Group projects more than $900 million in Reciprocal written premiums, over 360,000 policies written and more than $180 million in adjusted EBITDA, excluding the Reciprocal, for 2027.
The company also announced plans for an at-the-market equity offering program that would allow Porch Group or the Reciprocal to sell Porch shares periodically. The program could provide additional capital to support the Reciprocal’s growth.
The acquisition remains subject to regulatory approvals and customary closing conditions. The companies expect the transaction to close during the first quarter of 2027.
Information for this article was provided by Porch Group. Views and claims expressed in this article are those of the source company and do not necessarily reflect the views of AgencyEquity.com. This article may have been edited with the help of AI.
