3 Things – Insureon Acquired, Kin Raises & Digital Insurer P/E Valuations drop – 03/04/2022

Greetings Friends.  It was another busy week in insurance with news galore.  Again tough to fit into our usual form but we are following mostly insurtech this week as the traditional industry just plugs along the usual.  Here are the three things we learned:


Insureon Acquired by HUB & Bold Penguin

Small commercial digital broker Insureon was acquired by traditional broker HUB International and Bold Penguin.  HUB will receive the agency portion of the business with it’s clientele and appointments.  This type of acquisition is typical for HUB and they will add to their footprint and digital experience capabilities.  Bold Penguin will receive the technology staff and assets providing an opportunity to rationalize and integrate into their existing technology.  Overall, insurtechs appear to be exiting to incumbent insurers, remember that Bold Penguin is American Family.


After Cancelling SPAC IPO, Kin Raises $82M

Kin Insurance appears to have timed the market right, something most investors know is difficult if not impossible to do.  After cancelling their planned SPAC IPO in January they were able to close a Series D round valued at $82M.  That brings their total to $238M.  So, they seem to be well capitalized and can avoid the pitfalls of public insurtechs who have shed much of their value in the current bear market.  They still have a tough problem to solve, underwriting in the risky homeowners segment and generating a profit.


A FinTech Almanac

Do you ever lose track of all the deal-making, earnings and valuation stories in insurtech?  We do our best here to keep you informed but still miss things.  Financial Technology Partners, an investment bank focused exclusively on FinTech, released a report with a trove of good information to flip through.  Most interesting pages start at #20 and go through various metrics.  Digital insurance carriers price / earnings multiples went from 74.6x to 33.3x from 2021 to 2022.  Worth following their content which appears to be mostly without fee.

Thank you for following us, we appreciate your feedback and continued support.  Stay tuned for more info to come.  Until next week… stay safe, stay productive!