Porch Group, Inc. (NASDAQ:PRCH) Q4 2022 Earnings Call Transcript

Matt Ehrlichman: I’m happy to take the first, yes, it’s market value, book value. So when you have a transaction like this, we use the market price look at comps and then yes, set the appropriate book value for that purchase. So that’s exactly right. And then the second question

Ryan Tomasello: How long do you think it will take to recapitalize the new entity with third-party capital and take out the what you’re contributing?

Matt Ehrlichman: It’s actually a choice for us, Ryan, in terms of when we €“ when the capital will be priced right, more than our ability to go and get that capital. It’s also a question of just the capital needs of the entity. So one of the elements of Reciprocal is the consumers in addition to their premiums pay surplus contribution, so a slight additional amount that goes into building surplus. So it’s a more efficient way to build surplus over time. But we would expect over the course of the first year or so, assuming the cost of capital was right to be able to go out in and look to bring third-party capital in.

Lois Perkins: Great. Thank you, everyone. I’m afraid that’s all we have time for today. So thank you very much for joining and we look forward to speaking to you soon.

Matt Ehrlichman: Thank you all for the time and the interest. We do appreciate it. Have a great day. We’ll see you soon.