Porch Group and its reciprocal exchange have agreed to acquire Allied Trust's insurance carrier and managing general agency in deals worth about US$200m in total.
Why Porch Group is buying Allied Trust
Allied Trust writes business in Louisiana, Texas, South Carolina and North Carolina; Louisiana accounted for almost half of its 2025 premiums and would be a new state for Porch's reciprocal. Chief executive Matt Ehrlichman said the deal would add scale and claims data that could be combined with Porch's property data for pricing and underwriting.
Deal terms and financing
The Reciprocal will pay an initial US$55m in cash for the carrier, subject to surplus and debt adjustments, plus US$50m deferred over 12 months in cash or PRCH shares. Porch Group will pay US$95m for the MGA and captive reinsurer, comprising US$75m in cash and about US$20m in stock, which it says is under four times expected first-year adjusted EBITDA.
Regulatory approvals and timing
The deal requires regulatory approvals and is expected to close in the first quarter of 2027.
Market context
Porch said that, assuming a 1 January 2027 close, it expects more than US$900m of reciprocal written premium and more than US$180m of adjusted EBITDA (excluding the reciprocal) in 2027. It also plans an at-the-market equity programme.
