Porch targets more than $900 million in written premiums in 2027 after Allied Trust deal
Key Facts
Porch Group set preliminary internal targets for the combined company in 2027, including more than $900 million in reciprocal written premiums, more than 360,000 policies written and more than $180 million in adjusted EBITDA, excluding the reciprocal. The company said in its announcement of the Allied Trust deal that these results assume the acquisition closes on January 1, 2027. The figures reflect a full-year contribution from the acquired company and are therefore contingent on the deal closing on the assumed date. The targets do not constitute official guidance for 2027; Porch said it expects to issue that guidance in the first quarter of the year, after receiving regulatory approvals and completing the closing. In the market, the company’s stock closed at $16.3 on October 28, 2026.
Porch expects Allied Trust to add about $200 million in reciprocal written premiums and about $25 million in adjusted EBITDA, excluding the reciprocal, during the first full year after closing. The base consideration for the managing general agency and its affiliated reinsurance entity is $95 million, comprising $75 million in cash and about $20 million expected in Porch shares. This deal is separate from the reciprocal’s purchase of Allied Trust’s carrier. The initial base cash payment for the carrier is $55 million at closing, with $50 million deferred and payable within 12 months afterward. Consideration is subject to adjustments related to statutory surplus and debt, while Porch described the deal as representing an acquisition multiple of less than four times based on the expected earnings contribution in the first full year.
Allied Trust operates in Louisiana, Texas, South Carolina and North Carolina, and Porch said Louisiana accounted for nearly half of the company’s premiums in 2025. The state will be a new market for Porch’s reciprocal, expanding its geographic reach. Porch expects the deal to be approximately neutral to the reciprocal’s statutory surplus. Management also said the benefits of improving Allied Trust’s economics would develop gradually over the 12 to 24 months after closing. The company expects cash earnings generated by Allied Trust to repay Porch’s investment within three years.
The new targets follow growth in Porch’s insurance business in the third quarter of 2026, when reciprocal written premiums reached $161.0 million, compared with $137.5 million in the same quarter of 2025, an annual increase of 17%. Policies written rose to 67,500 from 47,700, up 42%. Policy growth accelerated from the second quarter, when it was 38% year over year, Chief Executive Matt Ehrlichman said. Agency branch count also increased 114%, and quote volume rose 79% year over year. The company said its insurance services operate under what it described as the “80 rule” in a soft insurance market, attributing this to proprietary data, disciplined underwriting, broad distribution and a largely fixed cost structure.
Porch’s consolidated revenue was $143.9 million in the third quarter, up 13% year over year, while revenue from its insurance services segment reached $102.8 million, an increase of 39%. Net income attributable to the company was $12.2 million, compared with a loss of $10.9 million in the third quarter of 2025. Adjusted EBITDA, excluding the reciprocal, was also $44.5 million, up 116% year over year. Porch raised its 2026 revenue outlook for its owned segments to a range of $518–523 million. It raised its adjusted EBITDA outlook, excluding the reciprocal, to $135–140 million from the previous range of $119–125 million.
Porch said the preliminary 2027 targets represent progress toward medium-term goals announced at its 2024 Investor Day: $3 billion in premiums and $660 million in adjusted EBITDA, without specifying a timeline for achieving them on the earnings call. As of the third-quarter results announcement, the Allied Trust deal had not closed, and the company had recorded no amounts related to the acquisition in its financial statements as of September 30, 2026, apart from immaterial professional fees. Closing remains subject to regulatory approvals and customary closing conditions. Porch expects the deal to close in the first quarter of 2027, which also determines the timing of the official guidance expected for that year. The company said its preliminary target assumes a full-year contribution from Allied Trust if the deal closes on January 1.