Kingstone Boosts Catastrophe Reinsurance Limit by $60M Amid Rising Exposure
Event summary
- Kingstone increased its catastrophe reinsurance limit to $500M for the 2026/2027 period, a 14% increase from the prior year.
- The program includes multi-year protection of $125M through a catastrophe bond issued by 1886 Re Ltd.
- Cost of core catastrophe excess of loss coverage dropped more than 15% on a risk-adjusted basis.
- 34 reinsurers participated, including six new entrants, reflecting broad market support.
The big picture
Kingstone's expanded reinsurance program reflects both rising exposure and improved market conditions. The 15% cost reduction suggests reinsurers are competing aggressively for business, while the inclusion of new participants signals confidence in Kingstone's underwriting. This positions the company to pursue its $500M annual premium goal by year-end 2029, though climate risks remain a wild card.
What we're watching
- Underwriting Discipline
- Whether Kingstone can maintain its disciplined approach to risk management amid expanding market opportunities.
- Reinsurance Market Dynamics
- How the pace of reinsurer participation will affect pricing and capacity in future placements.
- Climate Risk Exposure
- The impact of climate change on the frequency or severity of weather events, particularly wildfires.
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