Kin lands $33M in fresh financing from investors
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QED-led extension brings total for Series D round to $142M
CHICAGO, September 13, 2023-- Kin, the direct-to-consumer home insurance company built for every new normal, today announced the closing of a $33 million Series D extension. The funding was led by QED Investors with participation from returning investors Geodesic Capital, Allegis Capital, Hudson Structured Capital Management Ltd. (doing its reinsurance business as HSCM Bermuda), and Alpha Edison. Kin has now raised approximately $265 million in equity funding to date.
Investor confidence in Kin continues to climb due to its unique business strategy and market focus, which have produced systematic, capital efficient growth. The company is on pace to deliver $370+ million in total premium in 2023 and has turned the corner to positive operating income. Kin is also succeeding in geographies where other legacy insurers are either leaving or stalling growth. The results include stellar profitability metrics like adjusted loss ratio (34.5% through Q2 and well below industry averages), and strong unit economics like LTV/CAC (13x cumulative ratio through Q2).
“Investors are putting a premium on growth in the context of profitability, and we’re growing exceptionally fast because we’re able to profitably serve customers who aren’t being well served by incumbents,” said Sean Harper, CEO of Kin. “Because we’re already profitable and well funded, we didn’t need to raise right now, but the additional funding strengthens our liquidity position and can be used to fuel more growth. Also, we were able to raise without too much effort, at the same share price, while so many other technology companies are having trouble securing capital.”
Kin is disrupting a centuries-old industry with a combination of business model, technological, and financial innovation:
• Business model: Kin sells directly to consumers, which unlocks massive economic efficiency, and its sophisticated marketing targets customers that are a good match for its risk criteria, thereby creating an appropriately diversified, adequately priced book of business.
• Technological: Kin’s technology is the best at programmatically understanding the physical properties of buildings and the company’s homegrown policy platform enables it to implement important changes faster than the competition.
• Financial: Kin generates stable, recurring revenue by providing management services to two reciprocal exchanges, while shielding investors from direct insurance risk.
“Kin is structured to scale and skillfully manage the entire insurance value chain, which is why we’re so excited to double down on our investment in this truly seminal business,” said Amias Gerety, partner at QED. “By leveraging advanced analytics and led by an experienced and world-class management team, Kin is able to offer terrific service at an affordable price. Their direct-to-consumer approach and vertically integrated value-added chain assures that customers receive a best-in-class experience, even in markets that other insurers are pulling out of. We believe that Kin will be known as the defining company of the insurtech 2.0 era.”
Kin is the only pure-play, direct-to-consumer digital insurer focused on the growing homeowners insurance market. Kin makes homeowners insurance more convenient and affordable by eliminating the need for external agents. Kin’s technology platform delivers a seamless user experience, customized options for coverage, and fast, high-quality claims service. Behind the scenes, Kin utilizes thousands of data points about each property to provide accurate pricing and produce better underwriting results. Kin is a fully licensed carrier that offers coverage through reciprocal exchanges which are owned by its customers. To learn more, visit www.kin.com.
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