– October 2021 Total Managed Premium
increased 437% year-over-year to $10.6 million; stands at $79.4
million year-to-date
– Adjusted Loss Ratio improved 17.6%
from the prior-year comparative period
Kin Insurance, Inc. (“Kin” or the “Company”), a leading
direct-to-consumer homeowners insurance technology company that has
entered into a definitive business combination agreement with
Omnichannel Acquisition Corp. (NYSE: OCA) (“Omnichannel”), today
announced select preliminary operating results through October 31,
2021, and additional preliminary results for the third quarter
ended September 30, 2021:
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the full release here:
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(Graphic: Business Wire)
- Total Managed Premium1 increased to $79.4 million year-to-date
through October 31, 2021, over four times the $18.5 million of
Total Managed Premium in the prior-year comparative period.
- $10.2 million (96%) of Total Managed Premium in October 2021
was written through the Kin Interinsurance Network (the “Carrier”),
a reciprocal exchange managed by Kin Insurance, Inc.
- Premium Renewal Rate on the Carrier remained strong at 102.3%
in October 2021, increasing the year-to-date Premium Renewal Rate
to 95.2% through October 31, 2021.
- Adjusted Loss Ratio2 on the Carrier through September 30, 2021
was 89.8%, a 17.6% improvement over the prior-year comparative
period. Adjusted Loss Ratio, net of XOL recoveries, was 79.3%
through September 30, 2021.
“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,” said Sean
Harper, Chief Executive Officer of Kin. “Our premium renewal rate,
which is a key driver of future total managed premium and customer
lifetime value, also continues to exceed our expectations.”
Through the third quarter of 2021, adjusted loss ratio decreased
to 89.8% from 107.4% in the prior-year comparative period.
Hurricane Ida contributed 25.4% to the adjusted loss ratio, with
other PCS catastrophe events contributing 8.9%. Non-cat adjusted
loss ratio of 55.5% has decreased each of the last three quarters,
an improvement of 4.2 percentage points over the prior-year
comparative period.
Of the 25.4 percentage points from Hurricane Ida on a gross loss
& LAE basis, 41% was ceded to reinsurers under Kin’s XOL
reinsurance program. Kin Chief Insurance Officer Angel Colin added:
“The Kin Interinsurance Network’s reinsurance program is set up
such that it retained only the first $5 million of exposure from
Hurricane Ida. Even if the storm had created much greater losses,
the carrier’s financials would have been protected.”
“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.”
These preliminary results through October 31, 2021 and for the
third quarter ended September 30, 2021 are based on the information
available to us at this time. Our actual results may vary from the
estimated preliminary results presented here due to the completion
of our financial closing procedures and final adjustments. The
estimated preliminary results have not been audited or reviewed by
our independent registered public accounting firm. These estimates
should not be viewed as a substitute for our full interim financial
statements. Accordingly, you should not place undue reliance on
this preliminary data.
Business Combination Transaction
On July 19, 2021, Kin entered into a business combination
agreement with Omnichannel Acquisition Corp. (NYSE: OCA). The
business combination is expected to close in the fourth quarter of
2021. Upon closing, the combined public company will be named Kin
Insurance Inc., and its common stock is expected to be listed on
the NYSE under the new ticker symbol “KI”. Additionally, closing of
Kin’s acquisition of an inactive insurance carrier with licenses in
more than 40 states is still expected in the fourth quarter of
2021.
About Kin
Kin is the home insurance company for every new normal. By
leveraging proprietary technology, Kin delivers fully digital
homeowners insurance with an elegant user experience, accurate
pricing, and fast, high-quality claims service. Kin offers
homeowners, landlord, condo, and mobile home insurance through the
Kin Interinsurance Network (KIN), a reciprocal exchange owned by
its customers who share in the underwriting profit. Because of its
efficient technology and direct-to-consumer model, Kin provides
affordable pricing without compromising coverage. To learn more,
visit https://www.kin.com.
About Omnichannel Acquisition Corp.
Omnichannel Acquisition Corp. (NYSE: OCA) is a blank check
company whose business purpose is to effect a merger, capital stock
exchange, asset acquisition, stock purchase, reorganization or
similar business combination with one or more businesses. For more
information, please visit www.omnichannelcorp.com.
Important Information for Investors and Stockholders
This communication relates to a proposed business combination
(the “Business Combination”) between Omnichannel Acquisition Corp.
(“Omnichannel”) and Kin Insurance, Inc. (“Kin”). In connection with
the proposed Business Combination, Omnichannel has filed with the
SEC a registration statement on Form S-4 that includes a
preliminary proxy statement of Omnichannel in connection with
Omnichannel’s solicitation of proxies for the vote by Omnichannel’s
stockholders with respect to the proposed Business Combination and
a preliminary prospectus of Omnichannel. The final proxy
statement/prospectus will be sent to all Omnichannel stockholders,
and Omnichannel will also file other documents regarding the
proposed Business Combination with the SEC. This communication does
not contain all the information that should be considered
concerning the proposed Business Combination and is not intended to
form the basis of any investment decision or any other decision in
respect of the Business Combination. Before making any voting or
investment decision, investors and security holders are urged to
read the registration statement, the proxy statement/prospectus and
all other relevant documents filed or that will be filed with the
SEC in connection with the proposed Business Combination as they
become available because they will contain important information
about the proposed transaction.
Investors and security holders will be able to obtain free
copies of the registration statement, proxy statement/prospectus
and all other relevant documents filed or that will be filed with
the SEC by Omnichannel through the website maintained by the SEC at
www.sec.gov. In addition, the documents filed by Omnichannel may be
obtained free of charge by written request to: Christine Pantoya,
Chief Financial Officer, Omnichannel Acquisition Corp., 485
Springfield Avenue #8, Summit, New Jersey 07901.
Forward-Looking Statements
This communication includes “forward looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
“forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,”
“expect,” “estimate,” “plan,” “outlook,” and “project” and other
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. Such
forward looking statements with respect to revenues, earnings,
performance, strategies, prospects and other aspects of the
business of Kin or the combined company after completion of the
Business Combination are based on current expectations that are
subject to risks and uncertainties. A number of factors could cause
actual results or outcomes to differ materially from those
indicated by such forward looking statements. These factors
include, but are not limited to: (1) the occurrence of any event,
change or other circumstances that could give rise to the
termination of the transaction agreement and the proposed Business
Combination contemplated thereby; (2) the inability to complete the
transactions contemplated by the transaction agreement due to the
failure to obtain approval of the stockholders of Omnichannel or
other conditions to closing in the transaction agreement; (3) the
ability to meet the NYSE’s listing standards following the
consummation of the transactions contemplated by the transaction
agreement; (4) the risk that the proposed transaction disrupts
current plans and operations of Kin as a result of the announcement
and consummation of the transactions described herein; (5) the
ability to recognize the anticipated benefits of the proposed
Business Combination, which may be affected by, among other things,
competition, the ability of the combined company to grow and manage
growth profitably, maintain relationships with customers and
suppliers and retain its management and key employees; (6) costs
related to the proposed Business Combination; (7) changes in
applicable laws or regulations; and (8) the possibility that Kin
may be adversely affected by other economic, business, and/or
competitive factors. The foregoing list of factors is not
exhaustive. You should carefully consider the foregoing factors and
the other risks and uncertainties described in the “Risk Factors”
section of Omnichannel’s Annual Report on Form 10-K, and other
documents filed by Omnichannel from time to time with the SEC and
the registration statement on Form S-4 and proxy
statement/prospectus discussed above. These filings identify and
address other important risks and uncertainties that could cause
actual events and results to differ materially from those contained
in the forward-looking statements. Forward-looking statements speak
only as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements, and Omnichannel and
Kin assume no obligation and do not intend to update or revise
these forward-looking statements, whether as a result of new
information, future events, or otherwise.
Nothing in this communication should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward-looking statements will be achieved.
Participants in the Solicitation
Omnichannel, Kin and their respective directors and executive
officers may be deemed participants in the solicitation of proxies
of Omnichannel stockholders with respect to the proposed Business
Combination. Omnichannel stockholders and other interested persons
may obtain, without charge, more detailed information regarding the
directors and executive officers of Omnichannel Acquisition Corp.
and their ownership of Omnichannel’s securities in Omnichannel’s
final prospectus relating to its initial public offering, which was
filed with the SEC on November 23, 2020 and is available free of
charge at the SEC’s website at www.sec.gov, or by written request
to: Christine Pantoya, Chief Financial Officer, Omnichannel
Acquisition Corp., 485 Springfield Avenue #8, Summit, New Jersey
07901.
Additional information regarding the interests of participants
in the solicitation of proxies in connection with the proposed
transaction will be included in the proxy statement / prospectus
that Omnichannel intends to file with the SEC.
No Offer or Solicitation
This communication does not constitute an offer to sell or
exchange, or the solicitation of an offer to buy or exchange any
securities, or a solicitation of any vote or approval, nor shall
there be any sale of securities in any jurisdiction in which such
offer, solicitation, sale or exchange would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. No offering of securities shall be made except by
means of a prospectus meeting the requirements of section 10 of the
Securities Act, or an exemption therefrom.
1Total managed premium, a non-GAAP
financial measure, is the aggregate written premium placed across
all of our business platforms. We calculate total managed premium
as the sum of gross written premium and gross placed premium of
policies placed with third-party insurance companies, for which we
do not retain insurance risk and for which we earn a commission
payment, and policy fees charged by us to the policyholders on the
effective date of the policy.
2Adjusted Loss ratio, a non-GAAP financial
measure, is the ratio of gross losses and allocated loss adjustment
expenses of the Carrier, to the gross earned premium of the Carrier
and the pro-rated earned surplus contribution made by
policyholders.
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version on businesswire.com: https://www.businesswire.com/news/home/20211110005763/en/
Kin Investor Relations investors@kin.com
Media Relations press@kin.com
Omnichannel Investor Relations oacir@icrinc.com
Media Relations oacpr@icrinc.com
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