Digital home insurance company Kin Insurance Inc. and Omnichannel Acquisition Corp., a special purpose acquisition company, announced they have mutually agreed to terminate their plan to merge.
The parties cited “current unfavorable market conditions” for the termination.
In December, Kin, which targets catastrophe-prone areas including Florida, California, Georgia and Louisiana, said it had acquired an inactive insurance carrier holding license in 43 states as part of its plan to expand to additional states. That deal was disclosed along with the plan to go public by merging with Omnichannel Acquisition Corp. The SPAC agreement was expected to close in the 2022 first quarter.
Matt Higgins, chief executive officer of Omnichannel, called Kin “a very special company” with an important mandate.
“We cannot retreat from climate change, or abandon our most vulnerable cities, but instead we must adapt, and the insurance industry must evolve. Unfortunately, even the most promising high-growth companies have a difficult time overcoming current market sentiment, and Kin is no exception,” Higgins stated.
Omnichannel Acquisition Corp. is a blank check company looking to effect a business combination with one or more businesses.
Sean Harper, chief executive officer of Kin, agreed that “current market conditions are simply not conducive to Kin becoming a public company at this time.” However, he vowed that Kin will be accessing the public markets in the future “when the time is appropriate.”
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.