Porch Group, a homeowners insurance and vertical software platform, and Porch Insurance Reciprocal Exchange (the Reciprocal) have entered into a definitive agreement to acquire Allied Trust’s managing general agency (MGA) and insurance carrier, respectively.
Under the agreements, Porch Group will acquire Allied Trust’s managing general agent (MGA) and captive reinsurance entity for an aggregate base purchase price of USD 95 million. This comprises USD 75 million in cash and an expected USD 20 million in PRCH shares.
Meanwhile, the Reciprocal will acquire Allied Trust’s insurance carrier for an initial base price of USD 55 million in cash.
This amount is subject to adjustments based on the carrier’s statutory surplus and indebtedness at closing.
The deal also includes USD 50 million in deferred consideration, payable over the 12 months following closing. The Reciprocal can settle this deferred amount in cash or using the largely non-admitted PRCH shares it holds.
The transaction is expected to be approximately statutory surplus neutral for the Reciprocal, said Porch.
For context, Allied Trust is a regional insurer operating in Louisiana, Texas, South and North Carolina. Of these, Louisiana represented almost half of Allied Trust’s 2025 premiums and would be a new state for the Reciprocal.
The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the first quarter of 2027.
The acquisition will add approximately USD 200 million in Reciprocal Written Premium and USD 25 million of Adjusted EBITDA (Excluding Reciprocal) in the first full year following closing.
Following closing, Allied Trust is expected to operate under the same structure as Porch Group’s existing insurance business, while the Reciprocal will own the insurance carrier, collect premiums and pay claims, commissions, reinsurance costs and fees to Porch Group for operating services.
Porch Group expects to earn high-margin commissions and fees based primarily on premium and policy volume, from the firm’s continued predictable earnings profile.
Matt Ehrlichman, Chief Executive Officer, Porch Group, commented, “Allied Trust is a strong strategic fit for Porch and the Reciprocal, and we are excited about the opportunity to add a high-quality insurance business. This transaction is expected to expand the insurance products we manage, add a meaningful presence in Louisiana, and bring a strong team, a healthy company, and over a decade of claims data that we believe can become even more valuable when combined with Porch’s proprietary data and insurance operating capabilities.”
Ehrlichman continued, “Porch already has a strong organic growth profile, which Allied Trust adds to in the years ahead. Assuming a January 1, 2027 close, the acquisition positions us to achieve 2027 results of more than $900 million of Reciprocal Written Premium, more than 360 thousand Reciprocal Policies Written and more than $180 million of Adjusted EBITDA (Excluding Reciprocal).
“We expect to provide formal 2027 guidance in the first quarter of 2027 following regulatory approval and closing. In the meantime, we expect to begin integration planning and identify opportunities to accelerate distribution for Allied Trust and other potential synergies following closing.”
Porch Group has also confirmed plans to file for an at-the-market equity offering program (the ATM Programme) that would allow the Reciprocal or Porch Group to sell PRCH shares from time to time.
For the Reciprocal, the ATM Programme would provide flexibility to sell portions of its existing PRCH holdings over a long period of time in order to add additional growth capital to statutory surplus.
