Porch Group, Inc. (“Porch”, “Porch Group” or “the Company”)
(NASDAQ: PRCH), a leading vertical software company reinventing the
home services and insurance industries, today announced it signed a
strategic business collaboration agreement with Aon Corp. and Aon
Re, Inc. (“Aon”) 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 Re, Inc. is a leading reinsurance broker
and provides a wide variety of services for insurance and
non-insurance companies.
Reinsurance brokers are specialists who arrange reinsurance
coverage for insurance companies. Porch was seeking a strong
partner who could both deliver strong outcomes with reinsurance
placements and importantly, provide other services across Porch
Group such as data modeling and more. 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.
“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,” said Matt Ehrlichman, Chief
Executive Officer.
About Porch Group
Seattle-based Porch Group, Inc., the vertical software and
insurance platform for the home, provides software and services to
approximately 30,700 home services companies such as home
inspectors, mortgage companies and loan officers, title companies,
moving companies, real estate agencies, utility companies, and
warranty companies. Through these relationships and its multiple
brands, Porch Group provides a moving concierge service to
homebuyers, helping them save time and make better decisions on
critical services, including insurance, warranty, moving, security,
TV/internet, home repair and improvement, and more. To learn more
about Porch Group, visit porchgroup.com or porch.com.
Forward-Looking Statements
Certain statements in this release may be considered
“forward-looking statements” within the meaning of the “safe
harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995. Although the Company believes that
its plans, intentions, and expectations reflected in or suggested
by these forward-looking statements are reasonable, the Company
cannot assure you that it will achieve or realize these plans,
intentions, or expectations. Forward-looking statements are
inherently subject to risks, uncertainties, assumptions, and other
factors which could cause actual results to differ materially from
those expressed or implied by such forward-looking statements.
Generally, statements that are not historical facts, including
statements concerning the Company’s possible or assumed future
actions, business strategies, events, or results of operations, are
forward-looking statements. These statements may be preceded by,
followed by, or include the words “believes,” “estimates,”
“expects,” “projects,” “forecasts,” “may,” “will,” “should,”
“seeks,” “plans,” “scheduled,” “anticipates,” “intends,” or similar
expressions.
These forward-looking statements are based upon estimates and
assumptions that, while considered reasonable by the Company and
its management at the time they are made, are inherently uncertain.
Factors that may cause actual results to differ materially from
current expectations include, but are not limited to: (1) expansion
plans and opportunities, and managing growth, to build a consumer
brand; (2) the incidence, frequency, and severity of weather
events, extensive wildfires, and other catastrophes; (3) economic
conditions, especially those affecting the housing, insurance, and
financial markets; (4) expectations regarding revenue, cost of
revenue, operating expenses, and the ability to achieve and
maintain future profitability; (5) existing and developing federal
and state laws and regulations, including with respect to
insurance, warranty, privacy, information security, data
protection, and taxation, and management’s interpretation of and
compliance with such laws and regulations; (6) the Company’s
reinsurance program, which includes the use of a captive reinsurer,
the success of which is dependent on a number of factors outside
management’s control, along with reliance on reinsurance to protect
against loss; (7) the uncertainty and significance of the known and
unknown effects on the Company's insurance carrier subsidiary,
Homeowners of America Insurance Company (“HOA”), and the Company
due to the termination of a reinsurance contract following the
allegations of fraud against Vesttoo Ltd. (“Vesttoo”), including,
but not limited to, the outcome of Vesttoo’s Chapter 11 bankruptcy
proceedings; the Company's ability to successfully pursue claims
arising out of the alleged fraud, the costs associated with
pursuing the claims, and the timeframe associated with any
recoveries; HOA's ability to obtain and maintain adequate
reinsurance coverage against excess losses; HOA’s ability to stay
out of regulatory supervision and maintain its financial stability
rating; and HOA’s ability to maintain a healthy surplus; (8)
uncertainties related to regulatory approval of insurance rates,
policy forms, insurance products, license applications,
acquisitions of businesses, or strategic initiatives, including the
reciprocal restructuring, and other matters within the purview of
insurance regulators; (9) reliance on strategic, proprietary
relationships to provide the Company with access to personal data
and product information, and the ability to use such data and
information to increase transaction volume and attract and retain
customers; (10) the ability to develop new, or enhance existing,
products, services, and features and bring them to market in a
timely manner; (11) changes in capital requirements, and the
ability to access capital when needed to provide statutory surplus;
(12) the increased costs and initiatives required to address new
legal and regulatory requirements arising from developments related
to cybersecurity, privacy, and data governance and the increased
costs and initiatives to protect against data breaches,
cyber-attacks, virus or malware attacks, or other infiltrations or
incidents affecting system integrity, availability, and
performance; (13) retaining and attracting skilled and experienced
employees; (14) costs related to being a public company; and (15)
other risks and uncertainties discussed in Part I, Item 1A, “Risk
Factors,” in the Company’s Annual Report on Form 10-K (“Annual
Report”) for the year ended December 31, 2022, in Part II, Item 1A,
“Risk Factors,” in our Quarterly Reports on Form 10-Q for the
quarters ended March 31, 2023, June 30, 2023, and September 30,
2023, as well as those discussed in subsequent reports filed with
the Securities and Exchange Commission (“SEC”), all of which are
available on the SEC’s website at www.sec.gov.
Nothing in this release should be regarded as a representation
by any person that the forward-looking statements set forth herein
will be achieved or that any of the contemplated results of such
forward-looking statements will be achieved. You should not place
undue reliance on forward-looking statements, which speak only as
of the date of this release. Unless specifically indicated
otherwise, the forward-looking statements in this release do not
reflect the potential impact of any divestitures, mergers,
acquisitions, or other business combinations that have not been
completed as of the date of this release. The Company does not
undertake any duty to update these forward-looking statements,
whether as a result of changed circumstances, new information,
future events or otherwise, except as may be required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240125591698/en/
Investor Relations Contact: Lois Perkins, Head of
Investor Relations Porch Group, Inc. Loisperkins@porch.com
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