09:12 AM EDT, 10/28/2024 (MT Newswires) -- Porch Group ( PRCH ) said Monday the Texas Department of Insurance approved its application to form and license a new insurance reciprocal exchange.

Porch said it will contribute $10 million cash in exchange for a surplus note to capitalize Porch Insurance Reciprocal Exchange after the regulator completes administrative closing procedures.

The company will sell Homeowners of America Insurance Company, which it acquired in 2021, to the reciprocal on or around Jan. 1 in exchange for an incremental surplus note, it said.

Porch said it will earn commissions of about 20% of PIRE's gross written premium as the operator of the reciprocal.

Shares of the company were up over 15% in recent Monday premarket activity.

Price: 1.4805, Change: +0.20, Percent Change: +15.66