Kin Insurance Sponsors Formation of Kin Interinsurance Network

Transaction Overview

Kin Insurance, Inc. (“Kin”) sponsors formation of Kin Interinsurance Network (“Kin Exchange”)

  • Kin is a tech-driven home insurance provider founded in July 2016 by Sean Harper and Lucas Ward
  • Kin Exchange is a Florida-domiciled reciprocal insurance exchange offering homeowners insurance

Kin offers intuitive technology, affordable pricing and world-class customer service

  • Leverages thousands of public data points to recommend the appropriate coverage at affordable prices
  • Operates as an MGA / brokerage in Florida, Texas, Georgia and Alabama with plans to expand

Kin Exchange has been initially funded with $33.5mm of surplus notes

  • Proceeds used to capitalize Kin Exchange’s initial surplus and to support its growth opportunities
  • Kin Exchange has a financial stability rating of “A” (Exceptional) from Demotech, Inc.
  • Kin Exchange will be focused on Florida at the outset with near-term plans to diversify into other states

Kin Exchange entered into an attorney-in-fact agreement with Kin Risk Management, LLC (“KRM”)

  • KRM will provide all operational functions including pricing, U/W, claims, distribution and marketing
  • KRM, a wholly-owned subsidiary of Kin, will be led by Kin’s current management team

TigerRisk Capital Markets & Advisory Role

TCMA acted as exclusive Transaction Advisor and Placement Agent to Kin

  • Provided objective advice and acted as a confidant to Kin throughout the process
  • Transaction Advisor in all aspects of forming Kin Exchange
  • Placement Agent in connection with Kin Exchange surplus note security issuance
  • Key roles and responsibilities included:
    • Assistance in preparing Kin Exchange business plan and financial projections
    • Assistance in preparing regulator and rating agency materials
    • CAT modeling and reinsurance structuring for the reinsurance in Kin Exchange
    • Preparing financial packages and materials for potential investors
    • Marketing the transaction to potential investors and facilitating investor discussions
    • Negotiation of transaction terms & conditions

The transaction further solidifies TCMA as the market leader in reciprocal exchange formations

  • Including the formation of Vault Exchange in 2017 and Noblr Exchange in 2019