Insurtech company Kin Insurance has announced that it will go public through a merger with Omnichannel Acquisition Group, a special-purpose acquisition company led by entrepreneur and recurring Shark Tank guest judge Matt Higgins. Upon closing of the transaction, the combined company will be named Kin Insurance and is expected to be listed on the New York Stock Exchange under the symbol “KI.”
Kin, which currently operates in Florida, Louisiana and California, also announced that it has expanded its ability to enter new markets by agreeing to acquire an inactive insurance carrier that holds licenses in more than 40 states. The acquisition of the inactive carrier and the combination with Omnichannel Acquisition Group are both expected to close in the fourth quarter. Kin also announced that NBA player Draymond Green has joined golf champion Rory McIlroy as an investor in the company.
The merger reflects an estimated implied pro forma enterprise value at closing of $1.03 billion, assuming no redemptions by Omnichannel’s public stockholders. The transaction is expected to provide Kin with $242 million in cash at closing, which is in addition to the $80 million the company raised in its recent Series C funding round. The funding will be used to support Kin’s growth in existing markets, expansion into new markets, and new marketing channels and product portfolio expansions.
Kin is the only pure-play direct-to-consumer digital insurer focused on the $100 billion-plus homeowners insurance market. The company’s proprietary technology allows consumers to insure their homes online in minutes. Other insurance needs such as making policy changes and filing claims are similarly automated, Kin said.
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“The home insurance industry has been coasting for years on legacy technology and an antiquated way of interacting with customers,” said Sean Harper, co-founder and CEO of Kin. “It is more than ripe for an innovative alternative, and that is exactly why we created Kin – to provide customers with a better home insurance offering, better pricing and an overall better experience.”
Harper said that Kin’s proprietary technology enables the company to price home insurance more fairly for customers in areas impacted by climate change and severe weather.
“Our customers receive a simple, direct and exceptional experience that provides them with real savings and leaves them delighted and loyal to Kin,” he said. “As a result, we are growing fast, generating attractive unit economics, and we believe we are well-positioned to significantly expand our market share moving forward.”