Software-driven financial services firm Porch Group has revealed exposure to reinsurance contracts arranged via Vesttoo and has thus realised a charge of $48.2 million in its Q2 results.
Porch noted that in Q3, Homeowners of America (HOA), a subsidiary of Porch Group, discovered that Vesttoo, which arranged capital for one of the firm’s reinsurance contracts, faced allegations of fraudulent activity in connection with collateral it provided to HOA and certain other third parties.
