Porch Group receives $25 million with signing of strategic agreement with Aon

Porch Group, the parent company of insurer/MGA Homeowners of America, is announcing a “strategic business collaboration agreement” with Aon and Aon Re, to provide a variety of services to Porch Group companies, resulting in payments to Porch of approximately $25 million upfront and an expected approximately $5 million over the following four years.

Aon and Porch Group will work together to place 2024 reinsurance coverage at the upcoming renewal on April 1, 2024. As part of this agreement, the parties also signed a release of claims arising from the Vesttoo fraud. Porch has not released any claims against non-Aon parties related to these matters and intends to “vigorously” pursue recovery.

Porch disclosed in its second quarter 2023 earnings release that HOA had a reinsurance contract with White Rock Insurance, an Aon subsidiary for which Vesttoo arranged capital. The company recognized a $48.2 million charge in provision for doubtful accounts to reduce the net recorded balance receivable from the associated reinsurance contract. The company added that HOA will pursue recovery for all losses and damages incurred.

“We think Aon is the right partner for us. They are a well-known name in the insurance industry who can provide a variety of important services to help across our business. Porch and our insurance carrier have worked with Aon for many years and we are excited to expand this relationship with Aon as our sole partner for certain services through 2028.” – Matt Ehrlichman, CEO, Porch Group.