Porch Group, Inc. announced on January 7, 2025, the successful completion of the formation of the Porch Insurance Reciprocal Exchange (PIRE) and the corresponding sale of Homeowners of America Insurance Company (HOA) to PIRE.
The transaction involved Porch selling HOA to PIRE for an expected surplus of approximately $105 million as of December 31, 2024, less an existing $49 million surplus note and $9 million in outstanding interest. This resulted in Porch holding approximately $106 million in total surplus notes from PIRE.
With this completion, all insurance policies, premiums, claims, and HOA's assets and liabilities are now owned by PIRE. Porch Group will transition to earning high-margin commissions and fees for providing operating and other services to PIRE, aiming for more predictable financial results for its shareholders.
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