The acquisition involves a split structure: Porch Group will purchase Allied Trust’s managing general agency and captive reinsurance entity for $75 million in cash and $20 million in stock. Simultaneously, the Porch Insurance Reciprocal Exchange will acquire Allied Trust’s carrier for $55 million in upfront cash, supplemented by $50 million in deferred payments. Following the transition, the combined entity will follow Porch’s existing model, where the Reciprocal retains the insurance business while compensating Porch Group for operational costs and fees.
Chief Executive Matt Ehrlichman projects the integration will contribute roughly $200 million in Reciprocal Written Premium and $25 million in adjusted EBITDA during the first year of operation. Looking further ahead, the company has raised its 2027 performance outlook to over $900 million in written premiums and $180 million in adjusted EBITDA, contingent on a successful closing on Jan. 1. Alongside the acquisition, which is slated to finalize in the first quarter of next year, Porch Group confirmed plans to initiate an at-the-market equity offering program.

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