Kin Insurance, a direct-to-consumer digital home insurer that targets disaster-prone areas, said it acquired an inactive insurance company with licenses in 43 states.
Kin, which operated in Florida, California, Georgia and Louisiana, first announced the planned purchase of the licenses in July. The deal was disclosed along with plans to go public by merging with Omnichannel Acquisition Corp., a reverse merger or Special Purpose Acquisition Company (SPAC). The SPAC deal is still pending and is expected to close in the first quarter of 2022.
“Kin’s benefits are most relevant in the 40% of the country that is currently disaster-prone, including some of our most populous states,” Kin CEO Sean Harper said in prepared remarks.
Harper said the shell company’s new licenses it acquired will facilitate its expansion into states where it does not currently do business and allow it to reach a global home insurance market worth $110 billion. of dollars.
Kin plans to announce its entry into several new states in the first half of 2022.
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Harper told Reuters this summer Kin was looking to expand into North and South Carolina and Texas, and could offer auto and life insurance, mortgages and major appliance financing.
The newly acquired carrier will be renamed Kin Interinsurance Nexus.
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The Shell acquisition builds on the success of the Kin Interinsurance Network, a reciprocal exchange where customers, through their premiums, insure other members and share underwriting profits when there are few losses. Kin offers homeowners, landlords, condominiums and mobile homes insurance through the network. Kin said 94% of the $91 million it has generated year-to-date in total managed premiums has been written through this carrier.
Source: Kinship insurance
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