CHICAGO, IL – August 8, 2024 – Kin Insurance, Inc. (Kin), the direct-to-consumer home insurance company built for every new normal, today announced select operating results for the second quarter ended June 30, 2024.
Kin finished the second quarter of 2024 with $151.9 million in gross written premium, bringing the year-to-date total to $264.8 million. Operating income jumped from $1.0 million in Q1 to $5.2 million in the latest quarter, and operating margin without and with growth expenses was 61% and 12%, respectively. Year-to-date adjusted loss ratio was 26.5%, improved from 34.6% for the same period last year.
“In Q2 we continued to grow fast while generating positive operating income. Our baseline operating margins were 38%, even while we invested heavily in expanding our tech and data moat, demonstrating Kin’s potential to be a very high margin business. We grew New Written Premium 55% year over year, which was an acceleration in the pace of growth, while still maintaining a very efficient ratio of growth to growth related expenses”, said Sean Harper, CEO.
The adjusted loss ratio9 for the two reciprocal exchanges managed by Kin, net of XOL recoveries, was 26.5% through the first half of 2024. Non-cat10 adjusted loss ratio improved by 920 basis points over the same period last year, reflecting strong underwriting performance. Cat adjusted loss ratio increased by 120 basis points compared to prior year, due to more extreme weather events.
Kin is now open for business in ten markets with the launch of Tennessee last month. Jerry Fadden, Kin’s CFO said “With improving loss ratio and increased capital and surplus levels, the reciprocal exchanges we manage continue on their path to self-sufficiency.”
About Kin
Kin is the only pure-play, direct-to-consumer digital insurance provider 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 serves customers as a broker and as the manager of two reciprocal exchanges which are managed for the benefit of their customers. To learn more, visit www.kin.com.
1. The financial information represents the GAAP consolidated results of Kin Insurance, Inc. excluding its variable interest entities (VIEs), which are its reciprocal insurance carriers and captive.
2. Gross written premium includes premium written by the two reciprocals managed by Kin Insurance, Inc. and certain third-party carriers.
3. New Revenue is revenue derived from New Written Premium.
4. Renewal Revenue is revenue derived Renewal Written Premium.
5. Operating income represents net income/loss attributable to Kin Insurance, Inc. excluding interest expense, income tax expense, depreciation, amortization, stock-based compensation and other non operating expenses.
6. Growth operating income is defined as New revenue minus growth expenses; Growth expenses include sales and marketing expenses, variable data costs and other expenses associated with acquiring and onboarding new customers.
7. Baseline operating income is defined as Renewal revenue minus G&A expenses; G&A expenses defined as operating expenses not associated with customer acquisition.
8. The company has updated 2023 operating income to reflect changes associated with the amortization of prepaid expenses identified as a part of the annual review of financial statements.
9. Adjusted loss ratio is a non-GAAP measure defined as loss and loss adjustment expenses, net of catastrophe excess of loss reinsurance recoverables divided by earned premium and the "earned" portion of subscriber surplus contributions during the period and excludes Claims Management fees to attorney-in-fact.
10. Non-cat adjusted loss ratio excludes named storms and Property Claim Services (PCS) events as defined by Insurance Services Office, Inc. (ISO).
