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SPAC merger partner Kin Insurance reported third-quarter financial results before the market open Wednesday.
What Happened: Kin Insurance, which is merging with Omnichannel Acquisition (NYSE: OCA), reported third-quarter gross written premiums of $26.7 million, a 534% year-over-year increase. Total managed premiums were up 420% year-over-year to $27.8 million.
“While the third quarter is typically the seasonally slowest quarter, our direct-to-consumer value proposition enabled us to still grow our Total Managed Premium by double digits sequentially,” Kin Insurance CEO Sean Harper said.
The company’s renewal rate on carrier increased to a record 99%. Harper said he’s proud of the renewal rate rising as the company delivers on its “promise to customers and offering a superior experience from pricing to underwriting to claims.”
Kin saw its gross profit grow two times faster than operating expenses on a year-over-year basis.
Why It’s Important: Kin Insurance reports that the third-quarter growth was “entirely organic” and came without the use of independent agents, a key differentiating factor from competitors. The company has seen triple-digit growth in its managed premiums for five straight quarters.
Kin Insurance launched a brand campaign called “Florida Man,” which generated over a million social views. The marketing initiative could help create more brand awareness for Kin Insurance in the future.
The SPAC merger between Kin Insurance and Omnichannel Acquisition is expected to close in the fourth quarter. The company will trade as ticker KI on the NYSE once the merger is completed.
Price Action: OCA shares closed at $9.92 on Tuesday.
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