Kingstone lifts catastrophe reinsurance limit 57% to $440m for 2025

Kingstone Companies, Inc., a US property and casualty insurance holding company, has finalised its 2025/2026 catastrophe reinsurance placement, increasing the amount of reinsurance limit secured by 57%, or $160 million year-on-year to $440 million.

The limit includes $125 million in multi-year protection through the carrier’s first catastrophe bond, 1886 Re Ltd, announced back in May.

This cat bond is the first Rule 144A deal for sponsor Kingstone, providing the firm with a four year source of US named storm reinsurance protection.

Despite the significant coverage increase for Kingstone’s recent cat reinsurance placement, the overall cost rose by only 10%, the company’s Chief Executive Officer, Meryl Golden, noted.

She continued: “The catastrophe program cost is approximately 12% of projected direct premiums earned, down from 13% for the previous treaty period. Additionally, the total cost for catastrophe coverage was below our expectations and savings will positively impact our projected diluted EPS by $0.11 for the initial six months of the treaty (i.e., July 1, 2025 to December 31, 2025). Comparable savings benefits will be seen for the remainder of the treaty as well.

“We appreciate the broad support from our valued reinsurance partners, with over 25 reinsurers participating in the program. Their continued confidence underscores the quality of our underwriting and our disciplined approach to risk management. With our reinsurance placement now successfully completed, we are well-positioned to continue our profitable growth strategy and deliver sustainable long-term value to our shareholders.”

For its 2024/2025 reinsurance programme, Kingstone purchased $275 million of total catastrophe limit with savings of $6 million.

Visit our sister publication Artemis’ Deal Directory for more details on Kingstone’s inaugural cat bond and hundreds of other transactions.

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