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Kin improves adjusted LR by 17.6% in Q3, grows YTD managed premiums fourfold to $79mn

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InsurTech Kin Insurance reported an 89.8% adjusted loss ratio for the third quarter, marking a 17.6 point improvement over same quarter last year, the company said.

Hurricane Ida contributed 25.4 points to the adjusted loss ratio, with other PCS cat events contributing 8.9 points.

“Historically, the third quarter tends to have higher loss ratios, driven by larger amounts of extreme weather, only to be improved upon during the fourth quarter,” said Kin Chief Financial Officer Josh Cohen. “We’re pleased that we’re tracking ahead of that trend this year.”

Kin disclosed select preliminary operating results through October 31, 2021 and additional preliminary results for the third quarter ended 30 September.

The direct-to-consumer homeowner’s insurer, which in July agreed to combine with special purpose acquisition company Omnichannel Acquisition Corp ahead of a public listing, has grown to $79.4mn in total managed premiums year-to-date, over four times the 18.5mn reported last year.

The company also said that 96% of the total managed premium in October was written through the Kin Insurance Network. Kin manages the Kin Interinsurance Network, a customer-owned reciprocal exchange that collects surplus contributions from policyholders.

Earlier in October, Kin reported a total written premium of $26.7mn for Q3, up 534% year-over-year, but an operating loss of $9.3mn for the quarter ending 30 September.

Kin CEO, Sean Harper, said: “Growth in total managed premium remains very strong, with $10.6 million generated in October alone. Our annual goal of $98 million is well within reach, as we’ll need to average $9.35 million per month for the remaining two months to achieve it.”

“Our premium renewal rate, which is a key driver of future total managed premium and customer lifetime value, also continues to exceed our expectations.”

Kin underwrites homeowners’ cover in Florida, Louisiana, and California – three of the most cat-prone states in the country – and Harper explained to this publication in July that “volatility doesn’t need to be a bad thing, it just needs to be priced for correctly”.

In the summer, the company renewed its June 1 reinsurance treaty, backed by carriers including Topsail Re, Everest Re and Fidelis.

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