Kin, the direct-to-consumer home insurance company built for every new normal, announced operating results through the fourth quarter ended December 31, 2024.
Kin reports that it concluded 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.”
Kin Founder and CEO Sean Harper said:
“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.”
He continued:
“This year we deployed $58.6 million of organically generated capital toward R&D and expanded 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 2024 (12), 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 performance.”
The adjusted catastrophe loss ratio increased by “190 basis points compared to prior year, due to more frequent weather events.”
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 claims to consistently receive high ratings “on platforms like Trustpilot and Google, indicating strong customer satisfaction.”
As noted in the update, Kin is the pure-play, direct-to-consumer digital insurance provider focused “on the homeowners insurance market.”
Kin says that it makes homeowners insurance more “convenient and affordable by eliminating the need for external agents.”
Kin‘s technology platform reportedly 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 explains that it serves customers as an agent and as the “manager of two reciprocal exchanges which are managed for the benefit of their customers.”
