Kingstone Announces its 2025/2026 Catastrophe Reinsurance Placement

Rhea-AI Summary

Kingstone Companies (NASDAQ:KINS) has successfully finalized its catastrophe reinsurance program for July 2025-June 2026. The company increased its catastrophe reinsurance limit by 57% ($160 million) to $440 million, including $125 million in multi-year protection through their first catastrophe bond, 1886 Re Ltd. Despite the significant coverage increase, the overall cost rose by only 10%. The catastrophe program cost represents 12% of projected direct premiums earned, down from 13% in the previous period. The favorable terms will positively impact projected diluted EPS by $0.11 for July-December 2025, with similar benefits expected for the remainder of the treaty. The program received support from over 25 reinsurance partners.

Positive

• Catastrophe reinsurance limit increased by 57% to $440 million, providing enhanced protection
• Only 10% cost increase despite 57% coverage increase, demonstrating cost efficiency
• Program cost decreased to 12% of projected direct premiums earned from 13%
• Positive impact of $0.11 on projected diluted EPS for H2 2025
• Strong support from over 25 reinsurance partners indicating market confidence

Negative

• None.

Insights

Insurance Industry Analyst

Kingstone's expanded reinsurance program enhances financial stability with minimal cost impact, boosting projected EPS by $0.11.

Kingstone Companies has executed a strategic enhancement to its catastrophe reinsurance program for 2025-2026, significantly strengthening its risk management profile while maintaining cost efficiency. The company has increased its catastrophe reinsurance limit by 57% to $440 million, including $125 million in multi-year protection through its first catastrophe bond.

This substantial expansion in coverage comes with only a 10% increase in overall cost, demonstrating the company's improved negotiating position and risk profile in the reinsurance market. The catastrophe program cost now represents approximately 12% of projected direct premiums earned, down from 13% in the previous period—a meaningful efficiency gain in the challenging reinsurance market environment.

The favorable terms will deliver a $0.11 boost to projected diluted EPS for the second half of 2025, with comparable benefits expected through the first half of 2026. This represents a meaningful enhancement to earnings that wasn't previously factored into market expectations.

The broad participation of over 25 reinsurance partners signals strong market confidence in Kingstone's underwriting quality and risk management approach. This expanded coverage positions the company to pursue growth more aggressively while maintaining appropriate risk controls, particularly important given their recent premium and exposure growth in Northeast property markets that face increasing severe weather events.

KINGSTON, NY / ACCESS Newswire / June 23, 2025 / Kingstone Companies, Inc. (Nasdaq:KINS) (the "Company" or "Kingstone"), a Northeast regional property and casualty insurance holding company, today announced that its catastrophe reinsurance program for the period July 1, 2025 through June 30, 2026 has been finalized.

Meryl Golden, Chief Executive Officer at Kingstone, 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."

About Kingstone Companies, Inc.

Kingstone is a northeast regional property and casualty insurance holding company whose principal operating subsidiary is Kingstone Insurance Company ("KICO"). KICO is a New York domiciled carrier writing business through retail and wholesale agents and brokers. KICO is actively writing personal lines and commercial auto insurance in New York, and in 2024 was the 12th largest writer of homeowners insurance in New York. KICO is also licensed in New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire, and Maine.

Forward-Looking Statements

Statements in this press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those included in forward-looking statements due to a variety of factors. For more details on factors that could affect expectations, see Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission.

Kingstone undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Relations Contact:

Karin Daly
Vice President
The Equity Group Inc.
kdaly@equityny.com

SOURCE: Kingstone Companies, Inc

View the original press release on ACCESS Newswire

FAQ

What is the new catastrophe reinsurance limit for Kingstone (KINS) in 2025/2026?

Kingstone's new catastrophe reinsurance limit is $440 million, representing a 57% ($160 million) increase from the previous period

How will Kingstone's 2025/2026 reinsurance program affect its earnings?

The program will positively impact projected diluted EPS by $0.11 for July-December 2025, with similar benefits expected for the remainder of the treaty

What is the cost of Kingstone's new catastrophe program relative to premiums?

The catastrophe program cost is approximately 12% of projected direct premiums earned, down from 13% in the previous treaty period

How many reinsurance partners are participating in Kingstone's 2025/2026 program?

Over 25 reinsurance partners are participating in Kingstone's catastrophe reinsurance program

What is 1886 Re Ltd. in relation to Kingstone's reinsurance program?

1886 Re Ltd. is Kingstone's first catastrophe bond, providing $125 million in multi-year protection as part of the total reinsurance coverage