M&A - Porch Group, Inc.

Form Type: ARS

Filing Date: 2025-04-17

Corporate Action: Merger

Type: New

Accession Number: 000178453525000040

Filing Summary: On January 1, 2025, Porch Group, Inc. completed the formation of Porch Insurance Reciprocal Exchange (PIRE) and sold its homeowners insurance carrier, Homeowners of America (HOA), to PIRE. This sale resulted in HOA becoming a wholly owned subsidiary of PIRE. As part of the agreement, Porch Group will manage and operate PIRE, offering various services including underwriting, policy renewal, and risk management. The formation of PIRE aims to provide Porch with a more predictable commission and fee-based income and higher margin financial performance. Following this structural change, Porch plans to operate under new segments, improving its focus on growth and profitability in the homeowners insurance market. The strategic alignment is expected to enhance Porch's competitive position while mitigating risks associated with seasonality and catastrophic events.

Form Type: 8-K

Filing Date: 2025-01-07

Corporate Action: Acquisition

Type: New

Accession Number: 000178453525000003

Filing Summary: On January 1, 2025, Porch Group, Inc. formed Porch Insurance Reciprocal Exchange (PIRE), a new homeowners insurance reciprocal exchange, after receiving approval from the Texas Department of Insurance. This formation included the sale of Homeowners of America Insurance Company (HOAIC) to PIRE, making HOAIC a wholly owned subsidiary of PIRE. Porch Group is to manage PIRE and HOAIC under an Attorney-In-Fact Agreement (AIF Agreement), which outlines the management responsibilities such as underwriting and financial reporting. The sale was executed under a Stock Purchase Agreement, where HOAIC was sold for approximately $105 million, accounting for a prior surplus note issued to Porch Group. A press release on January 7, 2025, announced both the sale and the formation of PIRE.