Kin reports 35% revenue growth in Q1’25, California emerges as key market

Kin, the direct-to-consumer home insurance company, has announced its financial results for the first quarter of 2025, reporting $47 million in total revenue, up from $34.9 million in Q1 2024, with California emerging as a substantial growth driver during the quarter.

Sean Harper, Kin Founder and CEO, said: “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.

“Our 95% gross profit margin demonstrates the superior efficiency of our direct-to-consumer model, challenging the outdated structures of traditional insurance agencies and distributors.”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 also reported a rise in total written premiums, reaching $148.3 million in Q1 2025, up from $112.9million in Q1 2024. At $2.3 million, operating income in this year’s first quarter stayed the same as Q1 2024, while baseline operating income was $13.3 million, 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 ratio 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.

The non-catastrophe adjusted loss ratio remained consistent at 16.9%, reflecting continued strong underwriting performance.

“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.”

A key highlight for the insurer this quarter was its rapid expansion in California. Within just three months of its launch in the state, Kin bound 3,000 policies and generated $5.3 million in total bound premium.

This rapid growth has positioned California at policy-bound-per-quarter parity with Texas, Kin’s second-largest market. The company’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.”

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Kin, the direct-to-consumer home insurance company, has announced its financial results for the first quarter of 2025, reporting $47 million in total revenue, up from $34.9 million in Q1 2024, with California emerging as a substantial growth driver during the quarter. Sean Harper, Kin Founder and CEO, said: “We’re starting 2025 with strong results –…