Home insurance startup acquires insurance agency

In an SEC filing from last month, Porch Group disclosed that it sold its in-house insurance agency, Elite Insurance Group, for $12.2 million.

Porch didn’t reveal the buyer, but based on information we obtained, direct-to-consumer home insurance startup Kin is the new owner.

EIG had ~$45 million of GWP placed with third party carriers in 2023, which generated approximately $4.7 million of annual commissions. In 2023, EIG’s adjusted EBITDA loss was approximately $3 million.

We reached out to Porch about our findings but a company spokesperson refused to disclose the buyer while providing the following statement: “Following our tests, which connect homebuyers with third-party insurance agencies to compare conversion and profitability versus EIG, our in-house agency. Our unit economics and profitability improved substantially in these tests given the costs associated with running the agency. Therefore, we sold EIG for $12 million in January of this year.”

We also reached out to Kin’s co-founder and CEO, but we haven’t received a response.