The news follows on from the insurtech’s recent announcement that their latest funding round, which raised US$15 million, had elevated the company to unicorn status, with a valuation of over US$1 billion.
In their FY23 results, Kin recorded $344.1 million in gross written premium (GWP), marking an impressive 51% year-over-year (YoY) increase. Total revenue for FY23 reached $104.5 million, reflecting a notable 53% YoY growth compared to the previous year’s $68.2 million.
The company reported an operating income of $5.0 million, demonstrating a remarkable 143% increase over the prior-year period. In Q423 alone, Kin achieved $73.3 million in GWP, representing a solid increase from the previous year’s $55.6 million. Total revenue for the quarter also saw substantial growth, reaching $23.2 million compared to $17.2 million in the same quarter of the previous year.
Kin’s premium in force surged to $343.5 million in the fourth quarter of 2023, marking a remarkable 54% increase over the prior-year period. The reciprocal exchanges managed by Kin contributed significantly to driving down their adjusted loss ratios.
Notably, the adjusted loss ratio for the Kin Interinsurance Network, net of XOL recoveries, stood at 20.0% in Q423, marking the lowest for a single quarter in Kin’s history. Additionally, Kin’s non-cat adjusted loss ratio improved to 15.0% in Q4, showing solid progress from the previous low of 17.3% in the first quarter of 2023.
The adjusted loss ratio for the year landed at 28.9%, surpassing Kin’s target by 15.5%. These results underscore Kin’s commitment to maintaining operational efficiency and driving sustainable growth in the competitive home insurance market.
Speaking about the results, Sean Harper, CEO of Kin, said: “We’re very proud of our 2023 results. Kin generated an operating profit while maintaining a fast growth rate, and our reciprocal exchanges beat their forecasted loss ratios. We did that while investing heavily in technology to extend our competitive moat. We’ve always had positive unit economics, and with more of our revenue coming from renewals and our expenses growing slower than revenue, we’re now generating positive operating income.”
Angel Conlin, chief insurance officer at Kin, added: “Kin’s reciprocals have always performed well compared to their geographic competitors when it comes to loss ratio. However, combined ratios really deteriorated across the P&C industry in 2021 and 2022. Now that the industry has returned to healthier levels, you can really see Kin’s outperformance, which is due to our data and technology advantage throughout the insurance value chain.”
