Porch Group to Expand Insurance Business with Allied Trust Acquisition

By Tamara Parker • Wednesday, October 14 02:00 • Permanent Link

Porch Group said it has agreed to acquire Allied Trust’s insurance carrier and managing general agency in a deal that would expand its insurance business into Louisiana and add about $200 million in reciprocal written premium in the first full year after closing.

The company said the transaction would also contribute about $25 million in adjusted EBITDA, excluding the reciprocal, in that first full year, after planned portfolio optimization.

Allied Trust operates in Louisiana, Texas, South Carolina and North Carolina. Louisiana accounted for nearly half of Allied Trust’s 2025 premiums, making it a new state for Porch’s reciprocal business.

Porch said the acquisition would bring more than a decade of claims data and increase scale for its insurance operations. After closing, Allied Trust is expected to operate under Porch Group’s existing insurance structure, with the reciprocal owning the carrier, collecting premiums and paying claims, commissions, reinsurance costs and operating fees.

The deal is split between the two entities. The reciprocal will buy Allied Trust’s insurance carrier for an initial $55 million in cash, subject to adjustments for statutory surplus and debt at closing, plus $50 million of deferred consideration due over the following 12 months. Porch Group will acquire the managing general agency and captive reinsurance entity for $95 million, including $75 million in cash and an expected $20 million in PRCH shares.

Porch said the combined purchase price implies an acquisition multiple of less than four times based on Allied Trust’s expected adjusted EBITDA contribution.

If the deal closes on Jan. 1, 2027, Porch said it expects 2027 results to include more than $900 million of reciprocal written premium, more than 360,000 reciprocal policies written and more than $180 million of adjusted EBITDA, excluding the reciprocal. The company said it expects to provide formal 2027 guidance in the first quarter of 2027.

Porch also said it expects to file for an at-the-market equity offering program that would allow the reciprocal or Porch Group to sell PRCH shares over time, using the proceeds to add growth capital to statutory surplus. The market has reacted to these announcements by moving the company's shares 0.74% to a price of $17.69. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.