Porch Group Inc. (NASDAQ: PRCH) purchased approximately 2.1 million shares of its common stock from the Porch Reciprocal Exchange for $15 million in cash, the company announced.

The transaction was executed by Porticus Reinsurance Ltd., a Cayman Islands subsidiary of Porch Group, at $7.17 per share. This price reflected the Nasdaq closing price on March 31, 2026, when the parties received corporate approvals for the transaction.

The Porch Reciprocal Exchange, a Texas unincorporated reciprocal interinsurance exchange, completed the sale to convert a portion of its Porch stock holdings into cash. The exchange will continue to hold approximately 16.2 million Porch shares following the transaction.

According to the company, the transaction aims to increase the reciprocal's statutory surplus, as regulatory capital calculations count a large portion of the reciprocal's Porch share value as non-admitted assets in statutory filings.

The reciprocal reported statutory surplus of approximately $165 million for the quarter ended March 31, 2026, which the company said supports capacity for more than $800 million in reciprocal written premiums.

The parties entered into the securities purchase agreement on June 10, 2026, after receiving regulatory approvals from the Texas Department of Insurance and the Cayman Islands Monetary Authority.

This transaction differs from Porch Group's open-market repurchase program, which the company exhausted in March 2026 when it repurchased 0.3 million common shares for $2.5 million. The current transaction was permitted under the terms governing the company's 2028 convertible senior notes.