Insurance-linked securities (ILS), reinsurance, insurtech and transportation focused investment manager Hudson Structured Capital Management Ltd. has invested in home insurtech company Kin Insurance for the third time.
Hudson Structured, doing its insurance investment business as HSCM Bermuda, originally invested in Kin Insurance back in 2019, when it participated in a $47 million funding round for the company.
Hudson Structured followed this up and demonstrated its confidence in Kin’s business model, by participating in a $35 million Series B funding round for Kin as well, in 2020.
The new funding takes Kin’s total raised across seven rounds of investment in various forms to almost $151 million, according to Crunchbase.
Crunchbase broke the news on Kin’s Series C funding yesterday, saying that the nearly $64 million of investment was led by Senator Investment Group and Hudson Structured Capital Management.
Other investment firms that participated in Kin’s Series C included the University of Chicago’s Startup Investment Program, Allegis NL Capital and Alpha Edison.
The funding is designed to support Kin as it continues to expand its business into new states, to increase its hiring and for development of additional products.
Kin launched with a goal to reinvent home insurance using advanced technology, pulling in data to support its underwriting from multiple third-party sources, while affordable pricing, a customer focus, and efficient operations.
Kin ran a Florida carrier pilot that was structured as a reciprocal insurance exchange, giving its policyholders a voice in everything the company did.
It since expanded into Louisiana and California.
Kin has had a focus on property insurance in regions of the United States that are catastrophe exposed and the company told Crunchbase that the Gulf Coast is a target area for expansion, along with Texas and also the US Atlantic eastern coastal region.
Kin has a reinsurance program in place that features both rated and collateralized reinsurance capacity, across a 50% quota share arrangement, an excess of loss reinsurance tower for major catastrophe events, and a large property loss cover.
It’s not clear whether Hudson Structured, through its HSCM Bermuda unit, participates in the reinsurance program, but it would not surprise given the investment manager’s strong backing for Kin through its insurtech investments.
“We were really excited that the company was getting a lot of traction with the direct model, underwriting effectively, and we saw an opportunity to optimize the business model to set the company up for future growth,” Hudson Structured Capital Management vice president Andrew Sagon told Crunchbase in an interview.
Hudson Structured, which was founded by ex-Goldman Sachs structured finance head Michael Millette, invests in insurtech as one of the range of ways it derives insurance and reinsurance-linked returns for its investors, from across the full range of market access points.