Kin, the direct-to-consumer, digital home insurance provider, raised an oversubscribed $50 million Series E financing, at a pre-money valuation of $2 billion.
The digital insurance tech firm also closed on a “$200 million debt facility, $145 million of which was used to repay an existing debt facility.”
The debt and equity financings together result in “$105 million of incremental capital for the company which fuels growth, funds the launch of an additional reciprocal exchange, and enables investment in new products that meet the needs of Kin customers.”
With over $600 million of inforce premiums and “more than $100 billion in total insured property value, Kin serves customers in 13 states, covering more than 50% of the Total Addressable Market.”
The company, claiming to be profitable since 2023, delivers “growth and healthy operating margins, consistently exceeding the benchmarks set by Rule of 40 and Rule of X.”
Insured losses from global natural catastrophes “reached $137 billion in 2024 as a changing climate drives more frequent and severe natural disasters, including wildfires, hurricanes, and floods.”
Many U.S. insurers incurred losses and “stopped selling new business in high-risk states including California, Florida, Texas, and Louisiana, leaving a massive, non-discretionary market of homeowners without adequate protection or competitive options.”
Kin meets this market demand with its “direct-to-consumer model, proprietary technology, and data analysis techniques that enable it to assess and price risk, delivering coverage to these underserved homeowners.”
Kin Founder and CEO Sean Harper said:
“We built Kin differently. Our unique use of data and expert analysis enable us to better assess risk profiles of specific homes and offer customized protection. We’ll use this funding round to expand in markets most affected by natural disasters in a way that’s sustainable, scalable, and customer-focused.”
The lead investors in the Series E round “are QED Investors and Activate Capital, with participation from other new and returning investors.”
The debt financing is led by Wellington Management.
The Series E brings the total primary equity “raised to $286M, nearly doubles Kin’s previous $1.1 billion valuation, and accelerates its mission to deliver accessible, affordable home insurance everywhere in the United States, including areas where legacy insurers are pulling back.”
Amias Gerety, partner at QED:
“Kin fills a gap impacting millions of Americans that will intensify for the foreseeable future. And, as a direct-to-consumer company, they’re doing it with precision, efficiency, and empathy. Unfortunately, extreme weather is a reality for most of the country and legacy insurers are struggling to serve these homeowners. Kin is showing that technology can help humanity adapt to the current situation. It’s a necessary and bold business strategy. We’re proud to deepen our partnership.”
Eric Meyer, partner at Activate Capital said:
“Kin’s unique approach allows them to price affordable policies in geographies disproportionately impacted by extreme weather events. They’re not just writing policies; they’re offering a vital financial service to homeowners who need it most. We’re enthusiastic about investing further in a company that’s truly innovating and making a real difference.”
As the climate crisis redefines where and how people live, Kin’s modern, data-rich approach “to underwriting and customer engagement positions it as a resilient leader in the future of home insurance.”
Founded in 2016, Kin helps homeowners protect “what matters most in Alabama, Arizona, California, Colorado, Florida, Georgia, Louisiana, Mississippi, Missouri, South Carolina, Tennessee, Texas, and Virginia.”
Kin is the 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 reportedly “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.”