Kingstone Increases Catastrophe Reinsurance Limit by 57% for 2025-2026

Kingstone Companies, Inc., a property and casualty insurance holding company based in the Northeast, has finalized its catastrophe reinsurance program for the period from July 1, 2025, through June 30, 2026. This program includes a significant increase in catastrophe reinsurance limits, raising its coverage by 57%, or $160 million, to a total of $440 million.

Notably, this enhanced protection features multi-year exposure supported by the company's inaugural catastrophe bond issuance, 1886 Re Ltd., introduced earlier in May. Despite the higher reinsurance limit, Kingstone managed to limit the overall cost increase to just 10%, with catastrophe program costs representing approximately 12% of projected direct premiums earned, a slight decrease from the previous 13%.

This reduction in cost is expected to favorably impact the company's projected diluted earnings per share (EPS) by $0.11 for the initial six months of the treaty. The reinsurance program benefits from wide support, involving over 25 reinsurers, reflecting confidence in Kingstone's underwriting quality and risk management discipline. Kingstone Insurance Company (KICO), the principal operating subsidiary, is active in personal lines and commercial auto insurance across New York and nearby states, holding the position of the 12th largest homeowners insurer in New York in 2024.

The successful completion of this reinsurance placement strengthens Kingstone's capital adequacy and positions it for sustainable growth amid increasing premium volumes and exposure. The company continues to navigate the evolving insurance market with strategies that emphasize profitability and risk mitigation, leveraging reinsurance structures and capital market instruments like catastrophe bonds. Kingstone's approach exemplifies risk management prudence and financial strategy in regional property and casualty insurance markets, offering insights into current reinsurance trends and market conditions within the Northeast U.S. insurance sector.