Porch acquires Homeowners of America
Porch Group , a Seattle-based home services platform, announced it’s acquiring Homeowners of America (HOA) and all related subsidiaries for $100 million. The transaction, which is pending only regulatory approval, is expected to close in the second quarter of 2021.
HOA is a homeowners insurance company that 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.
HOA has a business-to-business-to-consumer (B2B2C) revenue model with all revenues recurring in nature. It generates new policy sales through an independent network of more than 800 independent agency partners.
“HOA is a great business with a deep and experienced leadership team who have spent more than a decade building a growing, profitable, and innovative MGA and insurance company hybrid. We have spent significant time assessing a large number of companies in the insurance industry to identify the right fit for Porch and we can confidently say that HOA is exceptionally unique. Leveraging our property data platform, self-serve consumer technologies, and no-cost homebuyer demand stream with our own line of homeowner’s insurance alongside our existing agency positions us to build the largest, fastest growing, and most profitable InsurTech business. In addition to Porch’s existing agency operations, Porch remains committed to HOA’s independent agent distribution channel who will over time see an enhanced product offering and expanded opportunities driven by the combination of HOA’s sophisticated underwriting and claims processes with Porch’s proprietary technology and data and analytics.” – Matt Ehrlichman, Porch founder, chairman and CEO.
“We are grateful for the efforts of HOA’s Founder, President and CEO Spence Tucker and his team for building this company into a highly efficient Managing General Agent and full stack insurer. As the longest tenured and most experienced venture capital firm predominantly focused on InsurTech, IA Capital is pleased to sell HOA to Porch.” – Andrew Lerner, managing partner of IA Capital Group and largest shareholder of HOA.
Porch also announced it is acquiring mover marketing and data platform V12 for $22 million, as well as home inspection service Palm-Tech and iRoofing, a SaaS application for roofing contractors.