Software company Porch Group has announced the acquisitions of CSE Insurance and American Home Protect (AHP), as it looks to accelerate its insurtech ambitions and enter the home warranty market.
CSE is a California-based personal lines insurer focused on property and auto that Porch has agreed to acquire from its current owner, Covéa.
The $48.6 million acquisition is expected to help Porch expand the number of the states where it operates as a full-stack managing general agency and carrier, while also providing an entrance into the California market.
CSE will also bring new insurance products in auto and umbrella and complement Porch’s Homeowners of America (HOA) business.
“CSE has made significant progress over the last two years to become a strong business led by a proven team with specialized insurance expertise in California,” said Matt Ehrlichman, Porch founder, Chairman and CEO.
“This acquisition not only accelerates the pace of geographic expansion of our managing general agent and carrier but also provides new insurance products such as auto and umbrella, which enables us to provide affordable bundled insurance solutions for consumers. We are excited about how Porch’s unique capabilities can continue to drive growth in our InsurTech business.”
Porch has also closed its $38.6 million acquisition of AHP, a Texas-based provider of whole home warranty policies across the US that utilizes a direct-to-consumer model to acquire customers for their multi-year warranty plans.
AHP will provide Porch an additional stream of subscription-based revenue, with significant expansion opportunities available with the Porch ecosystem.
“Our acquisition of AHP enables Porch to help more fully protect one’s home,” said Matt Ehrlichman, Porch founder, Chairman and CEO.
“Offering both insurance and warranty can help Porch ensure our customers’ largest investment, their home, is well cared for. We are impressed with the core capabilities AHP has built in a relatively short period of time and are confident that as part of Porch, given our unique demand and data, we will be well positioned for growth.”