Porch to Acquire Allied Trust's Insurance Business

By Ahmed Jamerson • Wednesday, October 14 11:04 • Permanent Link

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

The transaction would also contribute about $25 million in adjusted EBITDA, excluding the reciprocal, in that first full year, after planned portfolio optimization. Porch said the deal would expand its insurance business into Louisiana, where Allied Trust generated almost half of its 2025 premiums.

If the deal closes on Jan. 1, 2027 as planned, Porch said it expects 2027 results to top $900 million in reciprocal written premium, more than 360,000 reciprocal policies written, and more than $180 million in adjusted EBITDA, excluding the reciprocal.

Under the deal terms, the reciprocal would buy Allied Trust’s 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 12 months after closing. That deferred amount could be paid in cash or in Porch shares.

Separately, Porch Group would buy Allied Trust’s managing general agency and captive reinsurance entity for $95 million, made up of $75 million in cash and an expected $20 million in Porch shares.

Porch said the overall transaction is expected to be approximately statutory surplus neutral for the reciprocal. It also said the purchase price for the Porch Group portion implies an acquisition multiple of less than four times Allied Trust’s expected first-year adjusted EBITDA contribution.

Allied Trust operates in Louisiana, Texas, South Carolina and North Carolina and brings more than a decade of claims data to Porch’s insurance platform. Porch said the deal would give it a larger footprint in Louisiana and add a regional carrier with a sizable premium base to its insurance services business. As a result of these announcements, the company's shares have moved -2.66% on the market, and are now trading at a price of $17.22. Check out the company's full 8-K submission here.

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