Kin Insurance, an InsurTech focused on home coverage and related technology, has completed the acquisition of an inactive insurance carrier holding licenses in 43 states.
“Kin’s advantages are most relevant in the 40% of the country that is currently catastrophe exposed, including some of our most populous states,” Sean Harper, Kin’s CEO, said in prepared remarks. “These new licenses, combined with our best-in-class technology, will make expanding into those states and offering new products relatively easy.”
Kin, which has operated initially in Florida, California and Louisiana, first announced the planned purchase of the licenses in July. The agreement was disclosed along plans to go public by merging with Omnichannel Acquisition Corp., a reverse merger, or Special Purpose Acquisition Company (SPAC). The SPAC agreement is still pending, and is expected to close in the 2022 first quarter.
The newly-acquired carrier will be renamed the Kin Interinsurance Nexus. It is designed to help Kin continue its expansion with a focus on serving the growing number of catastrophe-prone states where homeowners need a new option for coverage, the company explained. Kin can now reach an aggregate home insurance market worth $110 billion.
The acquisition builds upon the success of the Kin Interinsurance Network, a reciprocal exchange where customers, through their premiums, insure other members and share in the underwriting profits when there are few losses. Kin has said that 94 percent of the $91 million it has generated year-to-date in Total Managed Premium was written through that carrier.
Kin expects to announce its entry into several new states in the first half of 2022.
Source: Kin Insurance