Porch Group announced that its Porch Insurance Reciprocal Exchange (PIRE) and Porch Group have agreed to acquire Allied Trust’s insurance carrier and managing general agency, respectively, in a deal valued at approximately $200 million. Allied Trust operates in Louisiana, Texas, South Carolina, and North Carolina, with Louisiana accounting for nearly half its 2025 premiums, according to Porch management
PIRE will pay $55 million in cash plus $50 million in deferred consideration for the carrier, while Porch Group will separately pay $95 million for the managing general agency and captive reinsurance entity. The deal is expected to close in Q1 2027, subject to approval from the Texas Department of Insurance.
PIRE was formed in January 2025 when Porch transferred Homeowners of America Insurance Company to the exchange, moving policyholder risk off its own balance sheet while retaining high-margin fees and commissions on premium volume. The model mirrors established reciprocals such as Farmers Insurance and Erie Insurance, with Porch acting as attorney-in-fact. The structure has produced rapid margin expansion, with adjusted EBITDA excluding the reciprocal growing 150% year-over-year in the second quarter of 2026 on $139.8 million of reciprocal written premium.
Allied Trust is the first acquisition to run through that structure. Porch guided for $600 million in organic reciprocal written premium in 2026. Adding Allied Trust’s expected $200 million pushes the combined 2027 target above $900 million, according to management’s internal estimates, which assume a January 1, 2027 close and are subject to regulatory approval and integration.
Allied Trust’s existing producer relationships in Louisiana, Texas, and the Carolinas add to a distribution network that Porch has been building aggressively. Agency branch locations rose 148% year-over-year in Q2 2026 and 181% in Q1 2026. For agents placing homeowners business in these states, Porch becomes a more material presence with the addition of a carrier that has been operating in Louisiana’s complex wind and flood risk environment for over a decade.
The claims data from that period is the less visible but equally important part of the deal. Porch has proprietary data covering approximately 90% of US residential properties through its home inspection software business, and management has consistently framed acquisitions as opportunities to add historical loss experience to that model. Porch has argued thatAllied Trust’s claims history dating to its 2015 founding, combined with its proprietary property data infrastructure, should produce better pricing accuracy in states where legacy carriers have struggled.
Matt Ehrlichman, chief executive officer of Porch Group, said the transaction is expected to add meaningful scale and “bring a strong team, a healthy company, and over a decade of claims data that we believe can become even more valuable when combined with Porch’s proprietary data and insurance operating capabilities.”
Allied Trust’s Louisiana footprint is the acquisition’s primary rationale, and the timing of the entry is not incidental. Louisiana’s homeowners market has been in recovery since the state enacted litigation reforms that began taking hold in 2023 and 2024. The Insurance Information Institute (Triple-I) noted in July 2026 that homeowners rate growth in Louisiana slowed to 4.6% in 2025 from 10.4% in 2023, with 17 new insurers entering the state since 2024 as the market stabilized.
Porch is arriving as conditions have normalized rather than betting on a distressed entry. The Triple-I brief noted, however, that legal system abuse continues to weigh on the market, and that further reform work remains. Porch brings existing Gulf Coast claims exposure from its Texas and Carolinas operations that should inform how it prices Louisiana wind risk.
The deal is expected to add approximately $200 million in reciprocal written premium and $25 million in adjusted EBITDA (excluding the reciprocal) in the first full year after closing, according to Porch management. At an acquisition multiple of less than four times projected EBITDA, the price reflects the market environment rather than a premium for strategic scarcity.
