Software company Porch Group has completed its previously announced acquisition of Homeowners of America (HOA), a property and casualty insurance company that specializes in residential property coverage for homeowners and investors.
HOA is a managing general agent and insurance carrier hybrid and primarily operates in Texas, Arizona, North Carolina, South Carolina, Virginia, and Georgia.
The company was founded in 2006 in Texas, a $10 billion homeowners insurance market, and is licensed to operate in 31 states.
Porch acquired HOA for approximately $100 million, of which approximately $21.7 million is payable in Porch common stock.
“With HOA’s experienced management team and scale of effective insurance operations, combined with Porch’s homebuyer access and unique property data, we are positioned to scale into our InsurTech ambitions,” said Matt Ehrlichman, Porch founder, chairman and CEO.
“We are looking to immediately provide value to current HOA agents and customers through our technology platform and expanded offerings to be more than just an insurance carrier, but the partner for the home.”
Ehrlichman continued: “We expect HOA’s fit within our unique vertical software platform will provide rapid, scalable, and profitable growth. The InsurTech space is nascent, and this acquisition demonstrates our commitment to industry leadership.”
Following the acquisition, Porch plans to expand HOA’s insurtech footprint across the US through its own insurance offering and HOA’s existing independent agent distribution channels.
Combining Porch’s access to homebuyers and property data with HOA’s pricing and claims experience, Porch believes it can become one of the largest insurTech companies and create long-term growth prospects.