The Porch Reciprocal Exchange (the Reciprocal) has sold approximately 2.1 million shares of Porch Group, Inc. common stock back to Porch for an aggregate purchase price of $15 million in cash, reflecting a purchase price of $17.7 per share.
According to the announcement, both parties entered into the securities purchase agreement June 10, 2026, following receipt of required regulatory approvals from the Texas Department of Insurance and the Cayman Islands Monetary Authority.
To execute this transaction and facilitate the cash transfer, Porch used its Cayman Islands captive reinsurer Porticus to purchase the shares from the Reciprocal.
The primary objective of this transaction, Porch explained, is “to convert a portion of the Reciprocal’s Porch common stock holdings into cash, which increases the Reciprocal’s regulatory capital (statutory surplus) given a large portion of the value of the Reciprocal’s Porch shares is instead counted as non-admitted assets in statutory filings.”
Following the sale, the Reciprocal will continue to hold approximately 16.2 million Porch shares. Retaining this stake ensures this exchange maintains significant upside potential should Porch’s share price appreciate in the future.
As of the quarter ending March 31, 2026, the Reciprocal reported a statutory surplus of roughly $165 million. This level of surplus provides the capacity to support over $800 million in Reciprocal Written Premiums.
Furthermore, the Reciprocal has seen its statutory surplus grow beyond initial projections since the close of Q1 2026, a trend that has persisted independently of the current transaction.
Porch noted that this transaction is separate from an open market repurchase authorised by the Board and exhausted in March 2026, and stated that it is not an open market repurchase.
The March 2026 open market repurchase program repurchased 0.3 million common shares for $2.5 million, which represented the maximum amount permitted under the company’s 2028 convertible notes indenture.
