Porch agrees $200m deal for Allied Trust carrier, MGA and captive, expecting about $200m of reciprocal premium

Porch Group and its affiliated Porch Insurance Reciprocal Exchange have agreed to buy Allied Trust, a regional property insurer that writes in Louisiana, Texas, South Carolina and North Carolina. The deal is split in two: the Reciprocal takes the insurance carrier, and Porch Group takes the managing general agency and the captive reinsurance company. Louisiana produced almost half of Allied Trust's 2025 premiums and would be a new state for the Reciprocal.

For the carrier, the Reciprocal pays a $55m cash base price, adjusted at closing for statutory surplus and debt, plus $50m of deferred consideration over the 12 months after closing. The Reciprocal may elect to pay that deferred amount in cash or in the largely non-admitted Porch shares it holds. Porch says this part should be roughly neutral to the Reciprocal's statutory surplus. For the MGA and captive, Porch Group pays $95m: $75m in cash and an expected $20m in Porch shares. Porch puts the price at less than four times its expected first-year Adjusted EBITDA (Excluding Reciprocal).

Porch expects Allied Trust to add about $200m of reciprocal written premium and about $25m of Adjusted EBITDA (Excluding Reciprocal) in the first full year after closing. Assuming a 1 January 2027 close, management's internal targets for 2027 are more than $900m of reciprocal written premium, more than 360,000 Reciprocal Policies Written, a measure Porch defines as new and renewal policies written by the Reciprocal, and more than $180m of Adjusted EBITDA. Porch says these targets are not pro forma figures. Chief executive Matt Ehrlichman called Allied Trust "a strong strategic fit" and pointed to its more than a decade of claims data, which Porch plans to combine with its own property data for pricing and risk selection.

Porch expects to file for an at-the-market equity programme; for the Reciprocal, this would allow sales of its existing Porch holdings to add growth capital to statutory surplus. Closing needs regulatory approvals, and Porch lists failure to obtain Texas Department of Insurance approval, or conditions on it, as a risk. It expects to give formal 2027 guidance in the first quarter of 2027.