Kin, the direct-to-consumer home insurance company, has announced the closing of a $33 million Series D extension.
QED Investors led this funding along with returning investors like 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, having raised $63.9 million in a Series C funding round and $82 million in the first close of its Series D funding round.
Kin said investor confidence in the firm remains strong due to its unique business strategy and market focus, which have produced systematic, capital-efficient growth. It is on pace to deliver $370+ million in total premiums in 2023 and has turned the corner to positive operating income.
The firm said it is also succeeding in geographies where legacy insurers are either leaving or stalling growth. The results include profitability metrics like an adjusted loss ratio of 34.5% through Q2 which is well below industry averages, and strong unit economics like LTV/CAC, 13x cumulative ratio through Q2.
Sean Harper, CEO of Kin commented, “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.
“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’s disruption of the centuries-old industry is done through its business model, technological advancement, and financial innovation.
By selling directly to consumers Kin unlocks economic efficiency, and its marketing targets customers that are a good match for its risk criteria, thereby creating an appropriately diversified, adequately priced book of business.
Its 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.
It generates stable, recurring revenue by providing management services to two reciprocal exchanges while shielding investors from direct insurance risk.
Amias Gerety, Partner at QED, concluded, “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.
“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.”
