Business
Acquisition of Homeowners of America by Porch Group
NEW YORK, Jan. 14, 2021 /PRNewswire/ -- Homeowners of America Holding Corporation (HOA) and Porch Group, Inc. (NASDAQ: PRCH) (Porch) have executed definitive
About this update from Porch Group, Inc.
[{"type":"text","content":"NEW YORK, Jan. 14, 2021 /PRNewswire/ -- Homeowners of America Holding Corporation (HOA) and Porch Group, Inc. (NASDAQ: PRCH) (Porch) have executed definitive agreements for Porch to acquire HOA and all related subsidiaries. The transaction, which is pending only regulatory approval, is expected to close early in the second quarter of 2021.\n\n \n \n \n \n \n \n\n \nHomeowners of America is a Managing General Agent (MGA) and insurance carrier hybrid with high margins and a capital efficient reinsurance strategy which limits retained risk. HOA primarily operates in six states, including Texas, Arizona, North Carolina, South Carolina, Virginia, and Georgia. HOA was founded in 2006 in Texas, a $10 billion homeowners insurance market, and was the 12th largest home insurer in Texas in 2019. HOA is licensed to operate in 31 states and HOA has a successful track record of expanding into new states. HOA is ultimately positioned to be a nationwide carrier. \nHOA has a business-to-business-to-consumer (B2B2C) revenue model with all revenues recurring in nature. HOA generates new policy sales through an independent network of more than 800 independent agency partners, including Porch's Elite Insurance Group insurance agency.\n\"HOA is a great business with a deep and experienced leadership team who have spent more than a decade building a growing, profitable, and innovative MGA and insurance company hybrid,\" said Matt Ehrlichman, Porch founder, chairman and CEO. \"We have spent significant time assessing a large number of companies in the insurance industry to identify the right fit for Porch and we can confidently say that HOA is exceptionally unique. HOA allows us to significantly accelerate our ability to penetrate the massive insurance industry and provides us the actuarial, underwriting, reinsurance, and claims management products and expertise we need. Its strengths and capabilities perfectly fit Porch as we continue to expand B2B2C insurance revenues on top of our vertical software platform. Leveraging our property data platform, self-serve consumer technologies, and no-cost homebuyer demand stream, and now combining our own line of homeowner's insurance alongside our existing agency, we believe we are positioned to build the largest, fastest growing, and most profitable InsurTech business. We are excited about being able to help ho...