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Insurtech Kin Raises $33M in Additional Financing from Series D Funding Round Led By QED Investors

Kin, the direct-to-consumer home insurance company, has announced the closing of a $33 million Series D extension funding round. QED Investors led the round, with participation from returning investors Geodesic Capital, Allegis Capital, Hudson Structured Capital Management, and Alpha Edison. With this latest funding, Kin has raised a total of approximately $265 million in equity funding.

Investor confidence in Kin remains strong due to its unique business strategy and market focus. The company is on track to deliver over $370 million in total premium in 2023 and has achieved positive operating income. Kin is also succeeding in geographies where other legacy insurers are struggling or leaving the market. This success can be seen through profitability metrics such as an adjusted loss ratio of 34.5% through Q2, well below industry averages, and strong unit economics like LTV/CAC with a cumulative ratio of 13x through Q2.

According to Kin CEO Sean Harper, investors are attracted to the company’s growth within a profitable context. Kin serves customers who are underserved by traditional insurers, and its profitability and funding strength have allowed it to raise additional capital easily, while many other technology companies are facing difficulties.

Kin is disrupting the insurance industry with a combination of business model, technological, and financial innovation. Its direct-to-consumer sales approach allows for cost efficiency, and its sophisticated marketing targets customers that fit its risk criteria, resulting in a well-diversified book of business. Kin’s technology excels at understanding the physical properties of buildings, and its homegrown policy platform enables it to implement changes faster than competitors. Additionally, Kin generates stable recurring revenue by providing management services to reciprocal exchanges, protecting investors from direct insurance risk.

Amias Gerety, partner at QED, praised Kin’s ability to scale and manage the entire insurance value chain, saying the company offers excellent service at an affordable price. The direct-to-consumer approach and vertically integrated value chain ensure a best-in-class experience even in markets where other insurers are pulling out. Gerety believes that Kin will be known as the defining company of the insurtech 2.0 era.

Kin is the only pure-play, direct-to-consumer digital insurer focused specifically on the growing homeowners insurance market. The company makes homeowners insurance more convenient and affordable by eliminating the need for external agents. Its technology platform provides a seamless user experience, customized coverage options, and fast, high-quality claims service. Behind the scenes, Kin leverages thousands of data points to accurately price policies and improve underwriting results. As a fully licensed carrier, Kin offers coverage through reciprocal exchanges owned by its customers.

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