Kin Interinsurance Network has successfully closed a $300 million catastrophe bond transaction through Hestia Re Ltd. This marks the third venture into the insurance-linked securities market for the reciprocal exchange managed by Kin, a digital home insurance provider. The bond offers multi-year indemnity-based protection against named storms in Florida and was upsized by over 70% from the expiring bond initiated in 2022, and 50% from the initial 2025 offering due to strong investor demand.
The transaction consists of two tranches: a $200 million Class A tranche and a $100 million Class B tranche, both providing three years of coverage. The pricing of this transaction improved significantly compared to previous catastrophe bonds issued by Kin, reflecting increased market confidence in Kin's underwriting approach and risk management strategies. This follows an earnings announcement revealing a 48% year-over-year revenue growth.
Angel Conlin, Chief Insurance Officer at Kin, said, "The success of this transaction, particularly the substantial improvement in pricing terms, validates our disciplined approach to risk selection and portfolio management." She added that the enhanced protection benefits policyholders by strengthening claims-paying ability while reducing overall costs.
This new catastrophe bond is part of a comprehensive 2025 reinsurance program for Kin-managed reciprocal exchanges. It aims to protect a growing policyholder base across multiple states. Sean Harper, CEO of Kin, noted that insurers have faced higher reinsurance rates recently but expressed optimism about decreasing rates benefiting policyholders. He emphasized that improved terms reflect investors' confidence in Kin's technology-driven approach to homeowners insurance.
Howden Capital Markets & Advisory served as the exclusive structuring agent and bookrunner for this transaction. Mitchell Rosenberg, Co-Head of Global ILS at Howden Capital Markets & Advisory, commented on the substantial upsizing and favorable pricing highlighting the ILS market's strong appetite for supporting innovative insurers like Kin reciprocals.
For more information or to get a quote, visit https://www.kin.com.
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