Managed Reciprocal Exchanges turned first full year of profit

CHICAGO, Feb. 26, 2025 /PRNewswire/ -- Kin, the direct-to-consumer home insurance company built for every new normal, today announced operating results through the fourth quarter ended December 31, 2024.

Kin finished 2024 with $495.3 million in gross written premium and $156.1 million in total revenue. Kin's operating income for the year was $12.0 million, representing a 126% increase over the prior-year.

"In 2024 we grew revenue 48% while non-growth expenses increased 24%.That's an important ratio for us and something we expect to continue - growing our fixed expenses at approximately half the rate of revenue growth.  As a result, Baseline Operating Margin increased from 22% to 33%, demonstrating the earning power of our business." said Kin Founder and CEO Sean Harper.  He continued, "this year we deployed $58.6 million of organically generated capital toward R&D and expanding our competitive moat.  We are pretty efficient, so we created a lot of distance with that investment".

Kin CFO Jerry Fadden added, "New revenue, which represents the fees attributable to new policies, grew approximately 60% in 2024 compared to 2023, and that growth was efficient with our $76.9 million of growth expenses generating an additional $60.9 million of new ARR".

The adjusted loss ratio for the two reciprocal exchanges managed by Kin, net of catastrophe excess of loss (XOL) reinsurance recoveries, was 25.9% for full year 2024¹², a continued improvement over the last four years. Adjusted non-catastrophe loss ratio of 15.5% improved by 600 basis points over 2023, reflecting strong underwriting performance¹³. The adjusted catastrophe loss ratio increased by 190 basis points compared to prior year, due to more frequent weather events¹⁴.  As a result, the Kin-managed reciprocal exchanges also generated positive adjusted net income for the year. 

Kin continues to rapidly expand its addressable market. It consistently receives high ratings on platforms like Trustpilot and Google, indicating strong customer satisfaction.

About Kin

Kin is the only pure-play, direct-to-consumer digital insurance provider focused on the growing homeowners insurance market. Kin makes homeowners insurance more convenient and affordable by eliminating the need for external agents. Kin's technology platform delivers a seamless user experience, customized options for coverage, and fast, high-quality claims service. Behind the scenes, Kin utilizes thousands of data points about each property to provide accurate pricing and produce better underwriting results. Kin serves customers as an agent and as the manager of two reciprocal exchanges which are managed for the benefit of their customers. To learn more, visit www.kin.com.

Footnotes

1. The financial information represents the GAAP consolidated results of Kin Insurance, Inc. excluding its variable interest entities (VIEs), which are its reciprocal insurance carriers and captive.
2. 2023 and 2024 revenues and operating income have been restated to reflect the application of ASC 606 to the recognition of management fees paid by the managed reciprocals, which resulted in an increase of $4.5M and $0.8M, respectively, in 2024 and 2023 revenues and operating income.
3. Gross written premium includes premium written by the two reciprocals managed by Kin Insurance, Inc. and certain third-party carriers.
4. New Revenue is defined as the proportion of revenue derived from New Written Premium to Gross Written Premium.
5. Renewal Revenue is defined as the proportion of revenue derived from Renewal Written Premium to Gross Written Premium.
6. New Revenue COS consists of the New Premium portion of Customer Service and Claims expenses.
7. Renewal Revenue COS consists of the Renewal Premium portion of Customer Service and Claims expenses.
8. Total Gross Profit calculates Total Revenue minus Customer Service and Claims expenses.
9. Operating income represents net income/loss attributable to Kin Insurance, Inc. excluding interest expense, income tax expense, depreciation, amortization, stock-based compensation and other non operating expenses.
10. Growth operating income is defined as New revenue minus growth expenses; Growth expenses include sales and marketing expenses, variable data costs and other expenses associated with acquiring and onboarding new customers.
11. Baseline operating income is defined as Renewal revenue minus G&A expenses; G&A expenses defined as operating expenses not associated with customer acquisition
12. The adjusted loss ratio is a non-GAAP measure defined as loss and loss adjustment expenses, net of catastrophe excess of loss reinsurance recoverables divided by earned premium and the "earned" portion of subscriber surplus contributions during the period and excludes Claims Management fees to the reciprocal exchange's attorney-in-fact.
13. The non-cat adjusted loss ratio is a non-GAAP measure defined as total loss and loss adjustment expenses, excluding loss and loss adjustment expenses from named storms and Property Claim Services (PCS) events as defined by Insurance Services Office, Inc. (ISO) divided by earned premiums and the "earned" portion of subscriber surplus contributions during the period and excludes Claims Management fees to the reciprocal exchange's attorney-in-fact.
14. The cat adjusted loss ratio is a non-GAAP measure defined as total loss and loss adjustment expenses from named storms and PCS events, net of catastrophe excess of loss reinsurance recoverables, divided by earned premiums and the "earned" portion of subscriber surplus contributions during the period and excludes Claims Management fees to the reciprocal exchange's attorney-in-fact.  

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SOURCE Kin