Kingstone Raises Reinsurance Limit to $500M and Cuts Coverage Cost Over 15%
KINS•Kingstone increased its 2026/2027 catastrophe reinsurance limit by 14% to $500 million while preserving first-event retentions at $3.5M (wildfire), $5M (named storm) and $6M (winter storm). It reduced risk-adjusted cost of core catastrophe excess coverage by over 15%, bringing reinsurance expense down to about 11% of direct premiums.
1. Reinsurance Program Highlights
Kingstone finalized its July 1, 2026–June 30, 2027 catastrophe reinsurance program, boosting its aggregate loss limit by 14% to $500 million. The placement preserves low first-event retentions of $3.5 million for wildfire, $5 million for named storm and $6 million for winter storm, including $125 million of multi-year cat bond coverage.
2. Cost Efficiency and Balance Sheet Strength
The company cut the risk-adjusted cost of its core catastrophe excess of loss coverage by more than 15%, lowering total reinsurance expense to approximately 11% of projected direct premiums, down from 13%. This enhanced cost efficiency is designed to stabilize underwriting results and support disciplined capital management.
3. Reinsurer Support and Growth Strategy
A total of 34 reinsurers participated in the treaty, including six new market entrants, underscoring strong industry confidence in Kingstone’s underwriting and risk management. The strengthened reinsurance program bolsters balance sheet resilience and underpins the company’s goal of achieving $500 million in annual written premium by year-end 2029.
