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Porch Group Closes Homeowners of America Acquisition, Creating One of the Largest InsurTech Companies
SEATTLE, April 06, 2021 (GLOBE NEWSWIRE) -- Porch Group, Inc. ("Porch” or “the Company") (NASDAQ: PRCH), a leading vertical software company reinventing the
About this update from Porch Group, Inc.
[{"type":"text","content":"SEATTLE, April 06, 2021 (GLOBE NEWSWIRE) -- Porch Group, Inc. (\"Porch” or “the Company\") (NASDAQ: PRCH), a leading vertical software company reinventing the home services industry, successfully completed its previously announced acquisition of Homeowners of America (HOA), making Porch one of the largest Insurance Technology (InsurTech) companies. HOA is a Managing General Agent 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. The company 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, positioning it for nationwide expansion as part of Porch. Porch acquired HOA for approximately $100 million, subject to customary purchase price adjustments, of which approximately $21.7 million is payable in Porch common stock. “With HOA’s experienced management team and scale of effective insurance operations, combined with Porch’s homebuyer access and unique property data, we are positioned to scale into our InsurTech ambitions,” said Matt Ehrlichman, Porch founder, chairman and CEO. “We are looking to immediately provide value to current HOA agents and customers through our technology platform and expanded offerings to be more than just an insurance carrier, but the partner for the home. We expect HOA’s fit within our unique vertical software platform will provide rapid, scalable, and profitable growth. The InsurTech space is nascent, and this acquisition demonstrates our commitment to industry leadership.”With the acquisition, Porch seeks to create efficient growth with reduced customer acquisition cost through the homebuyers accessed through its vertical software platform, proprietary property data collection and HOA’s current licensure in 31 states. Porch plans to expand HOA’s Insurtech footprint nationwide through its own insurance offering and HOA’s existing independent agent distribution channels.Combining Porch’s vast access to homebuyers and unique property data with HOA’s strong pricing and claims experience, Porch believes it can become one of the largest InsurTech companies with significant advantages to driving rapid, long-t...