Porch completes acquisition of HOA to create insurtech giant primed for rapid, scalable growth
Porch Group, the Seattle-based software company, has completed its acquisition of Homeowners of America (HOA), a managing general agent and insurance carrier hybrid, in a deal it says creates one of the largest insurtech companies in the world.
HOA was founded in 2006 in Texas and primarily operates in Texas, Arizona, North Carolina, South Carolina, Virginia, and Georgia, though it is licensed to operate in 31 states.
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.
Porch noted that HOA’s high margins and capital efficient reinsurance strategy limits retained risk. It believes the acquisition can deliver efficient growth with reduced customer acquisition costs, and plans to expand HOA’s insurtech footprint nationwide through its own insurance offering and HOA’s existing independent agent distribution channels.
Matt Ehrlichman, founder, chairman and chief executive at Porch, said HOA’s experienced management team and operations will complement its own homebuyer access and property data. For the full year 2021 Porch expects over $270 million of pro forma gross written premium between HOA and Porch’s existing insurance agency.
“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,” said Ehrlichman.
“We expect HOA’s fit within our unique vertical software platform will provide rapid, scalable, and profitable growth,” he added. “The insurtech space is nascent, and this acquisition demonstrates our commitment to industry leadership.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
