Homeowners insurtech Kin Insurance has reported gross written premium (GWP) of $227.5 million in its full-year results, representing a 117% increase in year-over-year growth from 2021’s $104.8 million.
Gross profit for the full-year was $68.2 million, which represents 130% growth compared to $29.6 million from 2021.
Adjusted loss ratio on the Kin Interinsurance Network – the Reciprocal Exchange – net of XOL recoveries, was 49.2% in 2022, representing a 25% improvement over 2021.
However, in Q4, Kin reported $55.2 million in GWP, representing a 53% increase from the prior-year quarter. The quarter also saw gross profits rise to $17.2 million, from $10.5 million from the same period last year.
Meanwhile, hurricane Nicole contributed 8.5% to the Reciprocal Exchange’s adjusted loss ratio in Q4, with all CAT activity contributing 14.1% for the year. Of the $175 million in ultimate expected loss & LAE from Hurricanes Ian and Nicole, 97% was ceded to reinsurers under Kin’s XOL reinsurance program.
Angel Conlin, chief insurance officer at Kin, said: “We’re continuing to see very favorable trends with non-CAT adjusted loss ratio, which has decreased each of the last eight quarters. We’re very pleased with our performance for both hurricanes. We kept the focus on our customers and are delivering projected loss results that outperform the modeled estimates.”
Sean Harper, CEO of Kin, commented: “Given the scale of the market and economic disruption that has shaped the risk landscape, we’ve been maniacally focused on cost containment and operational efficiency. The swift actions we took earlier in the year enabled us to still grow fast and efficiently, while limiting our exposure, and now we’re realizing better profitability metrics.
“We nearly landed our premium growth target, beat our CAC target by 24%, beat our reciprocal loss ratio target by 3%, and turned a positive operating income in the fourth quarter. That’s a very strong year by any measure.”
He continued: “Historically, insurance is a low-touch industry where insurers seldomly interact with their customers. We’re changing that paradigm to make home insurance easier and friendlier for people, especially those who live in catastrophe-prone states where they need a reliable option for coverage. Our high renewal rates reinforce our strong ability to support customers through our direct model and human-centered design.”
