Openly crosses $300 million in written premiums

Home insurance startup Openly has generated $301 million in written premiums in 2023, an 85% increase compared to 2022.

Openly’s insurance carrier subsidiary, Openly Insurance Company, has begun accepting risk last year through a reinsurance arrangement with Rock Ridge Insurance Company. The carrier assumed $23.6 million in premiums in 2023, ending the year with $13 million in earned premiums and a net underwriting loss of $6.5 million.

Based on our rough calculations, 2023 was not a positive year for Openly, but since the startup is not the only producer for Rock Ridge, it’s difficult to provide an accurate loss ratio. However, according to recent filing data, Openly has been in the red in 2021 and 2022.

One indication that can shed light on Openly’s 2023 loss ratio is the amount of losses paid. In 2022 and 2023, Rock Ridge reported $91 million and $232 million of paid losses for the homeowners line, respectively. These figures account for 56% and 77% of Openly’s net premiums written, respectively.

Late last year, we reported that Rock Ridge has been filing for rate increases for the Openly home insurance program in different states. The rate changes in several states were around 40%.

According to an independent agent group we track, Openly has not been approving as much business as they used to, and some agents claim that it is also not renewing some policies.

Last September, Openly raised $100 million, which brought its total funding to $238 million. The startup operates in 21 states.