Porch Group, Inc. (PRCH): M&A transaction — Porch Group completes formation of reciprocal exchange, sells HOAIC for ~$105M surplus value

Porch Group, Inc.

Porch Insurance Reciprocal Exchange formed; HOAIC sold to it for HOAIC's estimated $105M surplus less $58M surplus note.
Porch receives total surplus notes of ~$106M; new note $105M at SOFR+9.75%, 10-year term.
Porch will manage reciprocal via AIF agreement, earning ~20% blended take rate on gross written premium.
Transaction shifts insurance liabilities to reciprocal; Porch expects more predictable, higher-margin results.

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

Porch Group, Inc. completed a disposition involving Porch Insurance Reciprocal Exchange for approximately $105 million, less $58 million (closed 2025-01-01).

Action: disposition
Counterparty: Porch Insurance Reciprocal Exchange
Consideration: approximately $105 million, less $58 million
Closing: 2025-01-01

Exact text from the filing

all of the issued and outstanding shares of common stock of HOAIC to the Reciprocal for a purchase price equal to HOAIC’s estimated surplus at December 31, 2024 of approximately $105 million, less $58 million, which is the $49 million principal plus $9 million unpaid interest under a surplus note issued by HOAIC to the Company in 2023 (the “Purchase Price”). The SPA

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Porch Group, Inc. filing history →

Source: SEC EDGAR

accession 0001784535-25-000003

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