Kingstone Boosts Catastrophe Reinsurance Limit by 57% for 2025/2026

Kingstone Companies, Inc., a U.S. property and casualty insurance holding company, has increased its catastrophe reinsurance limit by 57% to $440 million for the 2025/2026 period, reflecting a $160 million year-on-year rise. This enhanced coverage includes $125 million secured through the company's inaugural catastrophe bond issued via 1886 Re Ltd, marking Kingstone's first Rule 144A sponsorship, providing a four-year named storm reinsurance buffer.

Despite the significant coverage expansion, Kingstone managed only a 10% increase in total catastrophe program costs, which now represent 12% of projected direct premiums, down from 13% the prior period. This cost efficiency is projected to improve the company's diluted earnings per share by $0.11 in the initial six months of the treaty, with ongoing savings anticipated for the rest of the coverage term.

The reinsurance program garnered broad support from over 25 reinsurers, underscoring market confidence in Kingstone's underwriting discipline and risk management practices. With the completed placement, the company aims to sustain its profitable growth strategy and enhance shareholder value. By comparison, Kingstone's 2024/2025 catastrophe limit was $275 million, realized with $6 million in savings, indicating a strategic escalation in risk transfer activities aligned with prudent cost management.