Porch Group acquires Allied Trust in $200 million deal

Porch Group just bought Allied Trust in a deal valued at $200 million, according to Insurance Business. Matt Ehrlichman, chief executive officer of Porch Group, stepped up to expand his company's footprint across four southern states with a single massive purchase. Porch Insurance Reciprocal Exchange is paying $55 million in cash plus $50 million in deferred consideration for the carrier, while Porch Group separately hands over $95 million for the managing general agency and captive reinsurance entity. Allied Trust operates in Louisiana, Texas, South Carolina, and North Carolina, with Louisiana pulling in nearly half its 2025 premiums. The transaction is expected to close in the first quarter of 2027 once the Texas Department of Insurance gives the green light. Porch management expects the combined 2027 target to top $900 million in reciprocal written premium. Allied Trust brings a decade of claims history in complex wind and flood risk environments, particularly in Louisiana where the homeowners market has started stabilizing after state litigation reforms. Porch plans to feed that historical loss experience into its proprietary software data covering 90 percent of United States residential properties. The deal is projected to add about $25 million in adjusted EBITDA in the first full year after closing. For your own Business Insurance bills, a larger and more stable carrier entering the southern wind market could eventually steady rising premiums.