HOA released from TDI supervision

Porch Group announced that its wholly owned subsidiary, Homeowners of America Insurance Company, is released from temporary regulatory supervision.

The Texas Department of Insurance is satisfied with HOA’s capital surplus, financials, and operating plan following Porch Group’s $57 million investment, in exchange for both a $49 million surplus note as well as the acquisition of HOA’s rights to potential claims receivables related to the fraud connected to Vesttoo and others.

“We appreciate the time and effort of the TDI, who did a thorough review of HOA’s financials and go-forward business plan. Our release from supervision reinforces our belief that our insurance business is well positioned for the future. I would like to thank the team for working diligently to resolve this quickly, while continuing to effectively serve our policyholders. We remain focused on managing gross written premium and taking underwriting actions to maximize profitability and increase value for shareholders. We look forward to sharing more at our upcoming Q3 2023 earnings.” – Matt Ehrlichman, CEO, Porch Group.