CHICAGO, IL – November 9, 2022 – Kin, the direct-to-consumer home insurance company built for every new normal, today announced select preliminary operating results through the third quarter ended September 30, 2022:
- Kin finished the third quarter of 2022 with $47.6 million in gross written premium, 72% above the prior-year period.
- Premium renewal rate on the Kin Interinsurance Network (the “Carrier”), a reciprocal exchange managed by Kin Insurance, Inc., increased to 111% in the third quarter of 2022, bringing the year-to-date premium renewal rate to 108%.
- Adjusted loss ratio for the Carrier, net of XOL recoveries, was 39.7% in the third quarter of 2022, a 59.1% improvement over the prior-year period.
“We’re very pleased with our growth of 72% in the third quarter. Given the incredible success we achieved in the first half of the year, it was very important, for risk management purposes, that we throttle our growth a bit so we don’t exceed the amount of exposure for which our reinsurance program was designed,” said Sean Harper, CEO of Kin. “When we saw changes in the macroeconomic environment earlier this year, we adjusted our goals to focus less on growth and more on accelerating our path to profitability and ensuring the reciprocal exchange is self-sufficient. We’ve done a good job on delivering on those objectives.”
Kin’s premium renewal rate, an important driver of future premium and customer lifetime value, increased to 111% in the third quarter from 108% in the second quarter. Notably, Kin earned a single-month record with a 113% premium renewal rate in September.
“Our direct-to-consumer model allows us to reduce and even eliminate many expenses associated with traditional ways of doing business in the insurance industry,” added Harper. “We’ve squeezed a lot of costs out of the process, using all of the efficiencies to give customers the affordable, necessary coverage that they need right now.”
Through the third quarter of 2022, Kin’s adjusted loss ratio, net of XOL recoveries, decreased to 46.6% from 81.7% in the prior-year period. Non-cat adjusted loss ratio was 38.1% through the third quarter of 2022, and has decreased on an inception basis each of the last seven quarters.
“We continue to drive down our loss ratio with our accurate pricing and improved risk selection,” said Angel Conlin, Chief Insurance Officer at Kin. “This progress has carried over into the fourth quarter as well, and our losses from Hurricane Ian will be better relative to the industry due to our very proactive, technology-driven approach to support policyholders and triage claims.”
Through the end of October, Kin has received approximately 7,000 claims related to Hurricane Ian, the Category 4 storm that made landfall in Florida on September 28, 2022. Kin’s XOL reinsurance program is set up such that it retains only the first $2.5 million of exposure from the storm, with an affiliated reinsurer retaining an additional $2.5 million. The full vertical limit for second-event coverage remains in place should it be needed for any other major storms this hurricane season.
About Kin
Kin is the home insurance company for every new normal. By leveraging proprietary technology, Kin delivers fully digital homeowners insurance with an elegant user experience, accurate pricing, and fast, high-quality claims service. Kin offers homeowners, landlord, condo, and mobile home insurance through the Kin Interinsurance Network (KIN), a reciprocal exchange owned by its customers who share in the underwriting profit. Because of its efficient technology and direct-to-consumer model, Kin provides affordable pricing without compromising coverage. To learn more, visit www.kin.com.
