Kingstone Companies, the New York and northeast US focused insurance group, has increased its catastrophe reinsurance limit by 57% at its renewal, securing a $440 million tower for 2025, with its recently completed debut catastrophe bond assisting in this expansion of core protection.A year ago, Kingstone Companies renewed its core catastrophe reinsurance tower to provide it with $275 million of cover.For the 2025 treaty year, Kingstone has secured $440 million in catastrophe reinsurance limit, a roughly 57% increase in protection to run from July 1st 2025 for one year.The insurer’s first catastrophe bond provides a valuable source of multi-year protection though, helping Kingstone achieve greater certainty for future renewals, as well as locking in efficient capital markets protection.

Recall that, to secure subsidiary Kingstone Insurance Company a 25% upsized $125 million multi-year source of fully-collateralized named storm reinsurance protection from the capital markets.Meryl Golden, President and CEO of Kingstone Companies Inc.said at the time of the cat bond settling that the venture and also helped manage its costs of reinsurance protection.

Now, in commenting on the Kingstone Companies reinsurance renewal, Golden stated, “I am pleased to announce the successful completion of our 2025/2026 catastrophe reinsurance placement with favorable economic terms.In response to the significant growth in premium and exposure experienced in the past year, we increased our catastrophe reinsurance limit by 57%, or $160 million, to $440 million.The limit includes multi-year protection of $125 million sourced through the issuance of our first catastrophe bond, 1886 Re Ltd., as announced in May.

“We achieved this enhanced protection with only a 10% increase to our overall cost.The catastrophe program cost is approximately 12% of projected direct premiums earned, down from 13% for the previous treaty period.Additionally, the total cost for catastrophe coverage was below our expectations and savings will positively impact our projected diluted EPS by $0.11 for the initial six months of the treaty (i.e., July 1, 2025 to December 31, 2025).

Comparable savings benefits will be seen for the remainder of the treaty as well.“We appreciate the broad support from our valued reinsurance partners, with over 25 reinsurers participating in the program.Their continued confidence underscores the quality of our underwriting and our disciplined approach to risk management.

With our reinsurance placement now successfully completed, we are well-positioned to continue our profitable growth strategy and deliver sustainable long-term value to our shareholders.” Kingstone had priced its debut catastrophe bond within the lower-half of guidance, while achieving a larger than initially targeted size for the deal.The 1886 Re cat bond protection now runs for four years to the end of June 2029, providing Kingstone with locked-in reinsurance and pricing certainty for that chunk of its now larger reinsurance tower.You can read all about this new catastrophe bond and every other cat bond deal in the extensive Artemis Deal Directory.

.All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.