Porch Reciprocal Exchange (“Reciprocal”) has sold approximately 2.1 million shares of Porch Group, Inc. common stock to Porch for a total purchase price of $15.0 million in cash, equivalent to a purchase price of $17.70 per share.
According to the announcement, the parties entered into a securities purchase agreement on June 10, 2026 after obtaining the required regulatory approvals from the Texas Department of Insurance and the Cayman Islands Monetary Authority.
To execute the transaction and facilitate cash transfers, Porch used its Cayman Islands captive reinsurer, Porticus, to purchase shares from the mutual company.
Porch explained that the primary objective of the transaction was to “convert a portion of Reciprocal’s Porch common shares held into cash, which would increase Reciprocal’s regulatory capital (statutory surplus), as the majority of the value of Reciprocal’s Porch shares is accounted for as non-admitted assets in statutory filings.”
Following the sale, Reciprocal will continue to hold approximately 16.2 million Porch shares. Retaining these shares ensures the exchange maintains significant upside potential if Porch’s share price appreciates in the future.
For the quarter ended March 31, 2026, Reciprocal reported a statutory surplus of approximately $165 million. This level of surplus is sufficient to support more than $800 million in mutual written premiums.
Additionally, the mutual company’s statutory earnings have grown above original forecasts since the end of Q1 2026, a trend that has continued independent of current trading.
Porch noted that this transaction is separate from the open market repurchase authorized by the board of directors and exhausted in March 2026, and said it is not an open market repurchase.
The March 2026 open market repurchase program repurchased 300,000 shares of common stock for $2.5 million, the maximum amount allowed under the company’s 2028 convertible note indenture.
