Baseline Operating Income Doubles as Network Profitability Improves
CHICAGO, May 13, 2025 /PRNewswire/ — Kin, the pioneering, direct-to-consumer, digital home insurance provider, today announced operating results for its first quarter ended March 31, 2025.
“We’re starting 2025 with strong results – 35% year-over-year revenue growth and substantial gains in profitability. This performance reinforces our disruptive force in the insurance market,” said Kin Founder and CEO Sean Harper. “Our 95% gross profit margin demonstrates the superior efficiency of our direct-to-consumer model, challenging the outdated structures of traditional insurance agencies and distributors.”
Kin delivered $47 million in total revenue during the first quarter of 2025, up from $34.9 million in the first quarter of 2024, and generated $13.3 million in baseline operating income that represented a nearly 97% year-over-year increase.
“Typically insurance broker and agent operating margins are in the mid to high 30s. Our equation is distinct because we invest more in technology than a traditional broker and have lower variable costs. This quarter’s 42% baseline operating income margin demonstrates the strength of our business model and its ability to generate sustainable profits,” said Kin CFO Jerry Fadden.
The adjusted loss ratio11 for the reciprocal exchanges managed by Kin, net of catastrophe excess of loss (XOL) reinsurance recoveries, was 20.6% for the first quarter of 2025, an improvement from 24.1% in the same period last year. Non-catastrophe adjusted loss ratio remained stable at 16.9% compared to 16.8% in the same period last year, reflecting continued strong underwriting performance.12
“The reciprocals’ loss ratio met our expectations. Roughly speaking, the reciprocals are balanced when they have a 30% or lower loss ratio. This quarter confirms that the reciprocals are working as intended – offering our customers efficient and stable insurance capacity,” said Angel Conlin, chief insurance officer at Kin. “Our technology enables us to provide a good value proposition to the customer, which is reflected in our robust growth rate, all while maintaining the financial position of the reciprocals.”
California emerged as a significant growth market for Kin in Q1 2025, with nearly 3,000 policies bound and $5.3 million in total bound premium13. Within three months of launch, California reached policies-bound-per-quarter parity with Kin’s second-largest market, Texas. Kin’s direct-to-consumer business model allows for superior management of risk concentration, which is paramount in managing the wildfire risk in California.
“Approximately half our new binds are now coming from outside Florida, our first market,” added Harper. “Continued geographic diversification and serving more customers in more markets is a strategic priority for Kin.”
About Kin
Kin is the only direct-to-consumer digital insurance provider focused on the growing homeowners insurance market. Kin offers more convenient and affordable coverage 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 analyzes thousands of data points about each property to provide accurate pricing. To learn more, visit www.kin.com.
Footnotes
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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. Prior period full year results reflect immaterial audit adjustments from prior presentations. Quarterly results are unaudited. |
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Gross Written Premium includes premiums written by the two reciprocals managed by Kin Insurance, Inc. and certain third-party carriers. |
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New Revenue is a non-GAAP measure defined as fee revenue calculated in proportion to New Written Premium as a percentage of Total Written Premium at Kin’s managed reciprocal exchanges. |
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Renewal Revenue is a non-GAAP measure defined as fee revenue calculated in proportion to Renewal Written Premium as a percentage of Total Written Premium at Kin’s managed reciprocal exchanges. |
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New Revenue Cost of Goods Sold (COGS) is a non-GAAP measure defined as the portion of customer servicing costs and internal claims labor expenses attributable to New Written Premium.. |
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Renewal Revenue Cost of Goods Sold (COGS) is a non-GAAP measure defined as the portion of customer service and internal claims labor expenses attributable to Renewal Written Premium. |
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Total Gross Profit is a non-GAAP measure defined as Total Revenue less customer servicing costs and internal claims labor expenses. |
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Operating Income is a non-GAAP measure defined as net income/loss attributable to Kin Insurance, Inc., excluding interest expense, income tax expense, depreciation, amortization, stock-based compensation, and other non-operating expenses. |
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Growth Operating Income is a non-GAAP measure defined as New Revenue minus New Revenue COGS and Growth Expenses; Growth Expenses include sales and marketing expenses, variable data costs, and other expenses associated with customer acquisition. |
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Baseline Operating Income is a non-GAAP measure defined as Renewal Revenue minus Renewal Revenue COGS and G&A Expenses; G&A Expenses defined as operating expenses not associated with customer acquisition. |
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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. |
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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. |
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Policies in California are marketed and distributed through Kin Insurance Services (CA License #0L32036), a California surplus lines broker. California policies are underwritten by a non-admitted carrier in partnership with Kin. |
SOURCE Kin
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