Kin Insurance has reported a gross written premium (GWP) of $54.1 million for Q122, over three times more than the $16.4 million GWP the company reported in the prior-year period.
$52.9 million (98%) of the GWP in Q122 was written through the Kin Interinsurance Network – a reciprocal exchange manged by Kin Insurance.
Kin’s operating leverage also improved in Q122, as gross profit grew over three times faster than operating expenses on a YoY basis.
In addition, Kin’s adjusted loss ratio decreased to 60.4% from 80.8% from Q121.
Furthermore, Kin also reported a non-cat adjusted loss ratio of 41.3% in Q122, compared to 71.8% from last year’s non-cat adjusted loss ratio in the same period.
At the same time, gross profit from Kin’s management operations also grew by 255% to $15.6 million, compared to $4.4 million in Q121.
“We’re off to an incredible start having beat our quarterly goal for gross written premium by nearly 16%,” said Sean Harper, Chief Executive Officer of Kin. “While we’re growing faster than ever, we’re doing it very efficiently and generating attractive unit economics, including a 8.0x LTV/CAC ratio and a premium renewal rate that’s trending above 100%.”
Angel Conlin, Kin’s Chief Insurance Officer, added: “In four of the last five years, the average combined loss ratio has been above 100 across the US homeowners industry, and it’s been even worse in some of the catastrophe-exposed states where we operate.
“In difficult times like these, we believe our DNA as a technology company enables us to respond to changes in the market faster and ultimately achieve better results.”
Harper also noted that the current challenging homeowners environment is one that plays to Kin’s strengths as a direct-to-consumer company.
He adds: “Inflationary periods are not generally good for insurance companies, as rate increases usually lag loss-cost increases. However, inflation is good for insurance agents, because premiums increase without increasing the amount of work necessary to service a policy. With our direct model, we have an advantage in this environment because we combine the economic profile of the agent with that of the carrier, which offset each other.”
Josh Cohen, Chief Financial Officer of Kin, commented: “We showed meaningful operating leverage as we experienced revenue growth and narrowed our operating loss. We’re well-positioned to not just hit our annual goal of $250 million in gross written premium, but also make further progress towards our financial goals that prioritize profitability.”
