Porch Group Closes Homeowners of America Acquisition, Creating One of the Largest InsurTech Companies
06 April 2021 - 10:00PM
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-term growth. For the full year 2021, the
Company expects over $270 million of pro forma gross written
premium between HOA and Porch’s existing insurance agency.
Agents and customers currently using HOA services should expect
enhanced product offering and expanded opportunities through the
Porch vertical technology systems and data.
About Porch
Group
Seattle-based Porch Group, the
vertical software platform for the home, provides software and
services to more than 11,150 home services companies such as
home inspectors, moving
companies, real estate agencies, utility companies, and
warranty companies. Through these relationships and its multiple
brands, Porch provides a moving concierge service to homebuyers,
helping them save time and make better decisions on critical
services, including insurance,
moving,
security, TV/internet,
home repair and improvement, and
more. To learn more about Porch, visit
porchgroup.com or
porch.com.
Forward-Looking Statements
Certain statements in this press release may be considered
“forward-looking statements” within the meaning of the “safe
harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
relate to future events or Porch’s future financial or operating
performance. For example, projections of future revenue, and other
metrics, business strategy and plans, and anticipated impacts from
pending or completed acquisitions, are forward-looking statements.
In some cases, you can identify forward-looking statements by
terminology such as “may,” “should,” “expect,” “intend,” “will,”
“estimate,” “anticipate,” “believe,” “predict,” “potential” or
“continue,” or the negatives of these terms or variations of them
or similar terminology. Such forward-looking statements are subject
to risks, uncertainties, and other factors which could cause actual
results to differ materially from those expressed or implied by
such forward looking statements. These forward-looking
statements are based upon estimates and assumptions that, while
considered reasonable by Porch and its management, are inherently
uncertain. Factors that may cause actual results to differ
materially from current expectations include, but are not limited
to: (1) the ability to recognize the anticipated benefits of
Porch’s December 2020 business combination (the “Merger”) with
PropTech Acquisition Corporation (“PropTech”), which may be
affected by, among other things, competition and the ability of the
combined company to grow and manage growth profitably, maintain key
commercial relationships and retain its management and key
employees; (2) expansion plans and opportunities, including future
and pending acquisitions or additional business combinations; (3)
costs related to the Merger and being a public company; (4)
litigation, complaints, and/or adverse publicity; (5) the impact of
changes in consumer spending patterns, consumer preferences, local,
regional and national economic conditions, crime, weather,
demographic trends and employee availability; (6) privacy and
data protection laws, privacy or data breaches, or the loss of
data; (7) the impact of the COVID-19 pandemic and its effect on the
business and financial conditions of Porch; and (8) other risks and
uncertainties described in Porch’s filings with the Securities and
Exchange Commission (“SEC”), which are available on the SEC’s
website at www.sec.gov.
Nothing in this press release should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward-looking statements will be achieved. You
should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. Porch does not
undertake any duty to update these forward-looking statements,
except as may be required by law.
Porch Press contact:Jordan SchmidtGateway
Group(949) 386-6332PRCH@gatewayir.com
Porch Investor Relations contact:Cody Slach,
Matt Glover Gateway Group(949) 574-3860PRCH@gatewayir.com
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