Porch Group and Porch Insurance Reciprocal Exchange have entered into definitive agreements to acquire Allied Trust’s insurance carrier, managing general agency, and captive reinsurance entity, expanding Porch’s homeowners insurance operations into Louisiana and increasing its presence across several southeastern states.
Allied Trust is a regional insurance carrier operating in Louisiana, Texas, South Carolina, and North Carolina. Louisiana accounted for nearly half of Allied Trust’s 2025 premiums and represents a new market for Porch Insurance Reciprocal Exchange.
Porch expects the acquisition to contribute approximately $200 million in Reciprocal Written Premium and about $25 million in Adjusted EBITDA, excluding the Reciprocal, during the first full year following closing and planned portfolio optimization.
The deal will also provide Porch with more than a decade of Allied Trust claims data. Porch plans to combine that information with its proprietary property data to improve pricing, underwriting, and risk selection over time.
Following closing, Allied Trust is expected to operate using the same structure as Porch’s existing insurance business. Porch Insurance Reciprocal Exchange will own the insurance carrier, collect premiums, and pay claims, commissions, reinsurance expenses, and operating fees to Porch Group. Porch Group will generate commissions and fees primarily based on policy and premium volume.
Under the transaction, the Reciprocal will acquire Allied Trust’s insurance carrier for an initial base price of $55 million in cash, subject to adjustments for statutory surplus and indebtedness at closing. An additional $50 million of deferred consideration will be payable over the following 12 months, with the Reciprocal able to pay in cash or certain Porch shares it holds.
Separately, Porch Group will acquire Allied Trust’s managing general agency and captive reinsurance entity for an aggregate base price of $95 million. That consideration consists of $75 million in cash and an expected $20 million in Porch common shares.
Based on Allied Trust’s expected first full-year Adjusted EBITDA contribution, Porch said the acquisition represents a multiple of less than four times for Porch Group.
Porch also expects the transaction to support a substantially larger insurance platform. Assuming a January 1, 2027 closing, management said the combination positions the company to potentially exceed $900 million in Reciprocal Written Premium, 360,000 Reciprocal Policies Written, and $180 million in Adjusted EBITDA, excluding the Reciprocal, during 2027. Those figures are company projections, and Porch plans to issue formal 2027 guidance after regulatory approval and closing.
The acquisition is expected to close during the first quarter of 2027, subject to regulatory approvals and customary closing conditions.
Porch separately plans to establish an at-the-market equity offering program that could allow Porch Group or the Reciprocal to sell Porch shares periodically. For the Reciprocal, the program could provide additional flexibility to convert existing Porch holdings into statutory surplus capital to support future growth.
KEY QUOTES:
“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.”
“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.”
Matt Ehrlichman, Chief Executive Officer Of Porch Group
