Insurance company Kin Insurance has announced that it will go public through a merger with Omnichannel Acquisition Group, a purpose-built acquisition company led by entrepreneur and recurring Shark Tank guest judge Matt Higgins. Upon completion of the transaction, the combined company will be called Kin Insurance and is expected to be listed on the New York Stock Exchange under the symbol “KI”.
Kin, currently operating in Florida, Louisiana and California, also announced that it has expanded its market opportunities with an agreement to acquire an inactive insurance carrier licensed in more than 40 states. The takeover of the inactive carrier and the merger with the Omnichannel Acquisition Group are expected to be completed 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 pro forma implied company value of $ 1.03 billion at closing, provided that no redemptions are made by Omnichannel public shareholders. The transaction is expected to raise Kin $ 242 million in cash upon completion, which is in addition to the $ 80 million the company raised in its most recent Series C financing round. The funding will be used to support Kin’s growth in existing markets, expansion into new markets, as well as new marketing channels and product portfolio additions.
Kin is the only all-digital direct insurer focused on the $ 100 billion home insurance market. The company’s proprietary technology enables consumers to have their home insured online in minutes. Other insurance needs like making policy changes and filing claims will be similarly automated, Kin said.
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“The home insurance industry has relied on outdated technology and an antiquated way of interacting with customers for years,” said Sean Harper, Kin co-founder and CEO. “It is more than ripe for an innovative alternative, and that is exactly why we created Kin – to offer customers a better range of home insurance, better prices and an overall better experience.”
Harper said Kin’s proprietary technology enables the company to make home insurance fairer for customers in areas affected by climate change and severe weather.
“Our customers get a simple, direct and extraordinary experience that will save them real money and make them excited and loyal to Kin,” he said. “As a result, we are growing quickly, generating an attractive unit economy and are well positioned to significantly expand our market share in the future.”