Kingstone (Nasdaq: KINS) finalized its catastrophe reinsurance program for July 1, 2026–June 30, 2027.
Key points include a $500 million loss limit (up 14% from 2025–2026), added wildfire coverage, and a risk-adjusted cost reduction of over 15% for core catastrophe excess of loss coverage.
The program features low first-event retentions of $3.5 million for wildfire, $5 million for named storm, and $6 million for winter storm. Overall catastrophe program cost is about 11% of projected direct premiums earned, compared with 13% for the prior period, and involves over 34 reinsurers, including six new participants.
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Positive
Catastrophe loss limit increased 14% to $500 million
Core catastrophe excess of loss cost down >15% on a risk-adjusted basis
Catastrophe program cost reduced to 11% of projected direct premiums from 13%
Added wildfire coverage to catastrophe reinsurance program
Maintained low first-event retentions of $3.5M/$5M/$6M by peril
Over 34 reinsurers participating, including six new market partners
Negative
None.
News Market Reaction – KINS
+3.47%
+3.47%News Effect
On the day this news was published, KINS gained 3.47%, reflecting a moderate positive market reaction.
This announcement enhances protection with a $500 million catastrophe limit and over 15% lower risk-...
Analysis
This announcement enhances protection with a $500 million catastrophe limit and over 15% lower risk-adjusted cost, echoing management’s profitable growth focus. Key watchpoints are future catastrophe activity, earnings volatility, and execution toward the $500 million written premium goal.
Key Figures
Catastrophe reinsurance limit:$500 millionLimit increase:$60 millionRisk-adjusted cost reduction:more than 15%+5 more
8 metrics
Catastrophe reinsurance limit$500 million2026/2027 catastrophe reinsurance program
Limit increase$60 millionIncrease in catastrophe reinsurance limit vs 2025/2026
Risk-adjusted cost reductionmore than 15%Core catastrophe excess of loss coverage cost decrease
Catastrophe bond protection$125 millionMulti-year protection within catastrophe reinsurance limit
First-event retention - wildfire$3.5 millionFirst-event retention level for wildfire in 2026/2027 program
Program cost ratio11% of projected direct premiums earned2026/2027 catastrophe program cost vs premiums
Prior program cost ratio13% of direct premiums earnedCatastrophe program cost for previous treaty period
Reinsurer participantsover 34 reinsurers, including six newNumber of reinsurers in 2026/2027 program panel
Declared quarterly $0.05 per share cash dividend to common stockholders.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Recent Kingstone news has generally seen share price moves align with the tone of the announcement, with positive capital actions and growth updates met by modest gains and loss-heavy earnings by a selloff.
Key Terms
catastrophe reinsurance, excess of loss coverage, catastrophe bond, direct premiums earned, +1 more
5 terms
catastrophe reinsurancefinancial
"announced that its catastrophe reinsurance program for the period July 1, 2026"
Catastrophe reinsurance is insurance bought by primary insurance companies to cover very large losses from rare events like hurricanes, earthquakes, or widespread fires. It works like a safety net or backup borrower that kicks in when claims exceed a high threshold, protecting the insurer’s finances and limiting the ripple effects on investors and policyholders. Investors care because the presence, terms, and cost of this protection affect an insurer’s risk of big unexpected losses and its capital stability.
excess of loss coveragefinancial
"lowers risk-adjusted cost for core catastrophe excess of loss coverage by more"
Excess of loss coverage is a form of reinsurance where a secondary insurer agrees to pay losses that exceed a primary insurer’s predetermined retention, up to a set limit. Think of it like an umbrella that only opens when a storm causes damage beyond what the first policyholder can reasonably cover. For investors, it matters because this protection lowers the chance of catastrophic payouts, stabilizes an insurer’s earnings and capital needs, and therefore affects risk, solvency and future profitability.
catastrophe bondfinancial
"protection of $125 million sourced through our catastrophe bond, issued last year"
A catastrophe bond is a type of bond sold by insurers or reinsurers that lets investors take on the financial risk of a specified natural disaster in exchange for higher interest payments; if the disaster happens, investors can lose part or all of their initial investment to cover insurer losses. It matters to investors because these bonds can pay attractive returns and behave differently from stocks and bonds, offering portfolio diversification—but they carry the real chance of a sudden, large loss, like collecting premium for an insurance policy that pays out if a house in a risky neighborhood burns down.
direct premiums earnedfinancial
"catastrophe program cost is approximately 11% of projected direct premiums earned"
Direct premiums earned is the portion of insurance premiums that an insurer recognizes as revenue during a reporting period from policies it wrote directly, rather than from business assumed from other insurers. Investors use this figure like a company’s sales number for its core product: it shows how much revenue the insurer is actually earning from its own policies over time and helps gauge growth and underwriting performance (think of prepaid subscriptions being recognized gradually as service is delivered).
written premiumfinancial
"profitable growth trajectory toward our goal of $500 million of annual written premium"
Written premium is the total dollar value of insurance policies an insurer issues or renews during a reporting period, recorded when the policy is sold rather than when coverage is provided. Investors use it as a measure of sales momentum and market share—like 'bookings' for a subscription business—because rising written premiums signal potential revenue growth and changing risk exposure, though they are not the same as earned revenue or immediate profit.
Increases limit to $500 million, adds wildfire coverage and lowers risk-adjusted cost for core catastrophe excess of loss coverage by more than 15%
KINGSTON, N.Y., July 01, 2026 (GLOBE NEWSWIRE) -- Kingstone Companies, Inc. (Nasdaq: KINS) (“Kingstone” or the “Company”), a regional property and casualty insurance holding company, today announced that its catastrophe reinsurance program for the period July 1, 2026 through June 30, 2027 has been finalized.
Key Highlights
Increased loss limit to $500 million, a 14% increase from 2025-2026
Maintained low first-event retentions of $3.5 million for wildfire, $5 million for named storm and $6 million for winter storm
Reduced the cost of core catastrophe excess of loss coverage by more than 15% on a risk-adjusted basis
Meryl Golden, President and Chief Executive Officer of Kingstone, stated, “I am pleased to announce the successful completion of our 2026/2027 catastrophe reinsurance placement on favorable terms. Due to the significant increase in exposure experienced in the past year, we made the decision to raise our catastrophe reinsurance limit by $60 million to $500 million. This limit includes the multi-year protection of $125 million sourced through our catastrophe bond, issued last year by 1886 Re Ltd. We also maintained a low first event retention with $3.5 million for wildfire, $5 million for named storm and $6 million for winter storm.
“While we raised the limit purchased, added wildfire to the mix and improved terms, the cost of our core catastrophe excess of loss coverage decreased more than 15% on a risk-adjusted basis. The catastrophe program cost is approximately 11% of projected direct premiums earned, down from 13% for the previous treaty period. This coverage strengthens our balance sheet protection and helps reduce the volatility of our results while supporting our continued profitable growth.
“We appreciate the broad support of our valued reinsurance partners, with over 34 reinsurers participating in the program, including six new reinsurers. Their continued confidence underscores the quality of our underwriting, the strength of our claims execution, and our disciplined approach to risk management. With this placement complete, we are well positioned to continue our profitable growth trajectory toward our goal of $500 million of annual written premium by year end 2029.”
About Kingstone Companies, Inc.
Kingstone is a regional property and casualty insurance holding company whose principal operating subsidiaries write business through retail and wholesale agents and brokers. Kingstone delivers tailored homeowners insurance solutions through its sophisticated product suite, Select, supported by a scalable and efficient operating platform that enables the Company to pursue significant market opportunities and strategic expansion. Kingstone was the 11th largest writer of homeowners insurance in New York in 2025 and also writes homeowners coverage in California on a non-admitted basis.
Forward-Looking Statements
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, 2025.
The risks and uncertainties include, without limitation, the following:
the risk of significant losses from catastrophes and severe weather events;
risks related to the lack of a financial strength rating from A.M. Best;
risks related to limitations on the ability of our insurance subsidiary to pay dividends to us;
adverse capital, credit and financial market conditions;
risks related to volatility in net investment income;
the unavailability of reinsurance at current levels and prices;
the exposure to greater net insurance losses in the event of reduced reliance on reinsurance;
the credit risk of our reinsurers;
the inability to maintain the requisite amount of risk-based capital needed to grow our business;
the effects of climate change on the frequency or severity of weather events and wildfires;
risks related to the limited market area of our business;
risks related to a concentration of business in a limited number of producers;
legislative and regulatory changes, including changes in insurance laws and regulations and their application by our regulators;
the effects of competition in our market areas;
our reliance on certain key personnel;
risks related to security breaches or other attacks involving our computer systems or those of our vendors;
our reliance on information technology and information systems; and
the uncertainty relating to our geographic diversification strategy in entering the California market and other markets.
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.
What did Kingstone (Nasdaq: KINS) announce about its 2026–2027 catastrophe reinsurance program?
Kingstone announced it has finalized its 2026–2027 catastrophe reinsurance program with higher limits and lower risk-adjusted costs. According to Kingstone, the program runs from July 1, 2026 through June 30, 2027 and is designed to support profitable growth and balance sheet protection.
How much is Kingstone’s catastrophe reinsurance loss limit for 2026–2027 (KINS)?
Kingstone set a catastrophe reinsurance loss limit of $500 million for 2026–2027. According to Kingstone, this represents a 14% increase versus the 2025–2026 period and includes $125 million of multi-year protection from a catastrophe bond issued by 1886 Re Ltd.
How did Kingstone’s catastrophe reinsurance costs change for 2026–2027 (KINS)?
Kingstone reports a reduction in risk-adjusted costs for its core catastrophe excess of loss coverage of more than 15%. According to Kingstone, overall catastrophe program cost is about 11% of projected direct premiums earned, down from 13% in the previous treaty period.
What per-event retentions apply in Kingstone’s 2026–2027 catastrophe reinsurance (KINS)?
Kingstone maintained low first-event retentions by peril in its 2026–2027 program. According to Kingstone, retentions are $3.5 million for wildfire, $5 million for named storm, and $6 million for winter storm, aiming to reduce earnings volatility from large events.
Does Kingstone’s 2026–2027 reinsurance program include wildfire coverage (KINS)?
Yes, Kingstone added wildfire to its catastrophe excess of loss coverage for 2026–2027. According to Kingstone, wildfire now has a first-event retention of $3.5 million, complementing named storm and winter storm protection within the overall $500 million catastrophe limit.
How many reinsurers participate in Kingstone’s 2026–2027 catastrophe program (KINS)?
Kingstone’s 2026–2027 catastrophe reinsurance program is supported by over 34 reinsurers. According to Kingstone, the panel includes six new reinsurers, which the company indicates as evidence of strong market support for its underwriting and risk management approach.
What growth goal is supported by Kingstone’s 2026–2027 reinsurance placement (KINS)?
The reinsurance placement is intended to support Kingstone’s profitable growth plans. According to Kingstone, the program helps it pursue a target of $500 million of annual written premium by year-end 2029 while aiming to reduce earnings volatility from catastrophe events.
