Porch Group Expands into Louisiana Insurance Market Through $200 Million Acquisition

2026-10-15 companies

Seattle, Wednesday, 14 October 2026.
Porch Group agreed to acquire Allied Trust for $200 million, securing access to over a decade of valuable historical claims data while projecting over $180 million in EBITDA for 2027.

Definitive Agreement Announced for Acquisition

Porch Group (NASDAQ: PRCH) has entered into a definitive agreement to acquire Allied Trust Insurance Company, a move designed to expand its presence in the property insurance sector [1][6]. The announcement was made on 13 October 2026, marking a significant step in Porch Group’s strategy to scale its insurance services segment [2][6]. Allied Trust, established in 2015, operates as a regional property insurer specializing in the Gulf Coast and Southeast regions, including Louisiana, Texas, South Carolina, and North Carolina [1][3]. The transaction is subject to regulatory approvals and customary closing conditions, with a target closing date set for the first quarter of 2027 [3][5].

Financial Structure and Valuation Details

The total consideration for the acquisition is valued at approximately $200 million, structured across multiple entities [3][7]. The Porch Insurance Reciprocal Exchange will acquire the insurance carrier for an initial base price of $55 million in cash, subject to adjustments, plus $50 million in deferred consideration payable over 12 months post-closing [1][5]. Separately, Porch Group will acquire the managing general agency and captive reinsurance entities for a total base price of $95 million, comprised of $75 million cash and approximately $20 million in PRCH shares [2][5]. The total transaction value is derived from the sum of these components, calculated as 200 million [1][2][5]. This structure represents an acquisition multiple of less than four times based on Allied Trust’s expected Adjusted EBITDA contribution during the first full year following closing [5][7].

Strategic Expansion into Louisiana Market

A primary driver for this acquisition is the opportunity to establish a meaningful presence in Louisiana, which accounted for nearly 50% of Allied Trust’s 2025 premiums [2][4]. This expansion marks Porch Group’s first acquisition under its policyholder-owned reciprocal structure since the Porch Insurance Reciprocal Exchange was established in January 2025 [3]. The deal brings over a decade of historical claims data dating back to 2015, which Porch Group intends to integrate with its proprietary data infrastructure covering approximately 90% of US residential properties [3][4]. Management believes this combination of data will enhance pricing, underwriting, and risk selection capabilities over time [4][8].

2027 Financial Projections and Timeline

Assuming a closing date of 1 January 2027, Porch Group forecasts 2027 results exceeding $900 million in Reciprocal Written Premium and more than $180 million in Adjusted EBITDA excluding the Reciprocal [2][6]. The acquisition is projected to add approximately $200 million in Reciprocal Written Premium and $25 million in Adjusted EBITDA in the first full year post-closing [4][8]. Formal 2027 financial guidance is expected to be issued in the first quarter of 2027 following regulatory approval and the closure of the acquisition [6]. Additionally, Porch Group intends to file for an at-the-market equity offering program to facilitate the sale of PRCH shares to bolster the Reciprocal’s statutory surplus [6][7].

Sources

Acquisitions Insurance