Kingstone Companies (NASDAQ:KINS) has successfully issued its first catastrophe bond worth $125 million through its subsidiary, Kingstone Insurance Company. The Series 2025-1 notes were issued via Bermuda-registered 1886 Re Ltd., priced at 4.5%, providing collateralized reinsurance protection. The notes offer multi-year protection against named storm events across five Northeast states (NY, NJ, CT, MA, RI) from July 1, 2025, through June 30, 2029. This strategic move enhances Kingstone's access to diversified capital while securing additional multi-year reinsurance capacity and managing protection costs. The catastrophe bond was structured and placed by Aon Securities LLC.
Kingstone Companies (NASDAQ:KINS) ha emesso con successo il suo primo bond catastrofale del valore di 125 milioni di dollari attraverso la sua controllata, Kingstone Insurance Company. Le obbligazioni della Serie 2025-1 sono state emesse tramite 1886 Re Ltd., registrata alle Bermuda, con un prezzo del 4,5%, offrendo una protezione di riassicurazione collateralizzata. Questi titoli garantiscono una protezione pluriennale contro eventi meteorologici denominati in cinque stati del Nordest (NY, NJ, CT, MA, RI) dal 1° luglio 2025 al 30 giugno 2029. Questa mossa strategica migliora l'accesso di Kingstone a capitale diversificato, assicurando al contempo una capacità di riassicurazione pluriennale aggiuntiva e gestendo i costi di protezione. Il bond catastrofale è stato strutturato e collocato da Aon Securities LLC.
Kingstone Companies (NASDAQ:KINS) ha emitido con éxito su primer bono catastrófico por un valor de 125 millones de dólares a través de su subsidiaria, Kingstone Insurance Company. Las notas de la Serie 2025-1 fueron emitidas mediante 1886 Re Ltd., registrada en Bermudas, con un precio del 4,5%, proporcionando protección de reaseguro colateralizada. Las notas ofrecen una protección multianual contra eventos de tormentas nombradas en cinco estados del noreste (NY, NJ, CT, MA, RI) desde el 1 de julio de 2025 hasta el 30 de junio de 2029. Este movimiento estratégico mejora el acceso de Kingstone a capital diversificado, asegurando además una capacidad adicional de reaseguro multianual y gestionando los costos de protección. El bono catastrófico fue estructurado y colocado por Aon Securities LLC.
Kingstone Companies (NASDAQ:KINS)는 자회사 Kingstone Insurance Company를 통해 1억 2,500만 달러 규모의 첫 번째 재해 채권을 성공적으로 발행했습니다. 2025-1 시리즈 채권은 버뮤다에 등록된 1886 Re Ltd.를 통해 발행되었으며, 4.5%의 금리로 담보 재보험 보호를 제공합니다. 이 채권은 2025년 7월 1일부터 2029년 6월 30일까지 뉴욕, 뉴저지, 코네티컷, 매사추세츠, 로드아일랜드 등 북동부 5개 주에서 발생하는 명명된 폭풍 이벤트에 대한 다년간 보호를 제공합니다. 이번 전략적 조치는 Kingstone가 다양한 자본에 접근할 수 있도록 하면서 추가 다년간 재보험 용량을 확보하고 보호 비용을 관리하는 데 도움을 줍니다. 이 재해 채권은 Aon Securities LLC가 구조화하고 배치했습니다.
Kingstone Companies (NASDAQ:KINS) a émis avec succès sa première obligation catastrophe d'une valeur de 125 millions de dollars via sa filiale Kingstone Insurance Company. Les obligations de la série 2025-1 ont été émises par 1886 Re Ltd., enregistrée aux Bermudes, au taux de 4,5%, offrant une protection de réassurance collatéralisée. Ces obligations offrent une protection pluriannuelle contre les événements de tempêtes nommées dans cinq États du Nord-Est (NY, NJ, CT, MA, RI) du 1er juillet 2025 au 30 juin 2029. Cette démarche stratégique améliore l'accès de Kingstone à un capital diversifié tout en sécurisant une capacité de réassurance pluriannuelle supplémentaire et en maîtrisant les coûts de protection. L'obligation catastrophe a été structurée et placée par Aon Securities LLC.
Kingstone Companies (NASDAQ:KINS) hat erfolgreich seine erste Katastrophenanleihe im Wert von 125 Millionen US-Dollar über seine Tochtergesellschaft Kingstone Insurance Company ausgegeben. Die Notes der Serie 2025-1 wurden über die in Bermuda registrierte 1886 Re Ltd. mit einem Zinssatz von 4,5% emittiert und bieten eine besicherte Rückversicherungsdeckung. Die Anleihen bieten einen mehrjährigen Schutz gegen benannte Sturmevents in fünf nordöstlichen Bundesstaaten (NY, NJ, CT, MA, RI) vom 1. Juli 2025 bis zum 30. Juni 2029. Dieser strategische Schritt verbessert Kingstones Zugang zu diversifiziertem Kapital, sichert zusätzliche mehrjährige Rückversicherungskapazitäten und steuert die Schutzkosten. Die Katastrophenanleihe wurde von Aon Securities LLC strukturiert und platziert.
Positive
Secured $125 million in collateralized reinsurance protection
Multi-year protection spanning four annual risk periods (2025-2029)
Diversification of risk transfer and capital sources
Coverage across five Northeast states against named storm events
Negative
4.5% pricing on the notes represents additional cost of capital
Limited to named storm events only, leaving other catastrophic risks potentially uncovered
Insights
Kingstone's first $125M catastrophe bond provides multi-year storm protection while diversifying capital sources and potentially reducing reinsurance costs.
Kingstone's inaugural $125 million catastrophe bond represents a strategic enhancement to their reinsurance program with significant implications for their risk management capabilities. The transaction, structured through Bermuda-based 1886 Re Ltd., provides collateralized protection specifically against named storms across five Northeastern states where Kingstone operates.
The 4.5% pricing on these notes is particularly noteworthy in the current reinsurance market environment. This structure offers Kingstone guaranteed storm protection for four years (July 2025-June 2029), creating predictability in an otherwise volatile reinsurance market where pricing and availability can fluctuate significantly year-to-year.
The indemnity trigger mechanism means the protection is based directly on Kingstone's actual losses, making this highly aligned with their specific exposure profile. This transaction represents financial innovation for a regional insurer of Kingstone's size - catastrophe bonds have typically been utilized by much larger carriers, suggesting increased sophistication in their risk management approach.
Most importantly, this structure likely helps Kingstone optimize its overall reinsurance costs while providing certainty on a significant portion of capacity. For a regional property insurer operating in coastal Northeastern states, catastrophe protection is a fundamental business requirement. This transaction effectively transfers peak storm risk to capital markets, complementing traditional reinsurance and potentially reducing concentration risk with any single source of protection.
KINGSTON, NY / ACCESS Newswire / May 22, 2025 / Kingstone Companies, Inc. (Nasdaq:KINS) (the "Company" or "Kingstone"), a Northeast regional property and casualty insurance holding company, today announced the successful issuance of a $125 million catastrophe bond, marking a significant milestone in the company's strategic risk transfer and capital management initiatives. The catastrophe bond issuance is the first sponsored by the Company's subsidiary, Kingstone Insurance Company.
The Series 2025-1 notes were priced at 4.5% and issued through a Bermuda-registered special purpose insurer, 1886 Re Ltd., providing Kingstone Insurance Company with $125 million of collateralized reinsurance protection. The notes offer multi-year protection against named storm events across New York, New Jersey, Connecticut, Massachusetts and Rhode Island on an indemnity trigger and per-occurrence basis. The notes, which were structured and placed by Aon Securities LLC, will cover four annual risk periods from July 1, 2025, through June 30, 2029.
Meryl Golden, President and Chief Executive Officer of Kingstone, stated, "We are pleased to have sponsored this catastrophe bond issuance, which enhances our access to efficient, diversified capital. This transaction has enabled the Company to secure additional multi-year reinsurance capacity while also helping to manage the overall cost of protection. We are thankful to Aon Securities for their effective execution of the process and to our catastrophe bond investors for their support."
Richard Pennay, CEO of Aon Securities LLC, said, "Aon Securities is honored to have partnered with Kingstone on their inaugural catastrophe bond, issued by 1886 Re Ltd. The support Kingstone received from the global catastrophe bond investor base is a tribute to the company and management team. With this offering, Kingstone has demonstrated its ability to access a diversifying source of risk-transfer protection."
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.
About Aon Securities
Aon Securities and its associated personnel are subject to a number of regulatory bodies. Aon Securities LLC is a broker-dealer registered with the Securities and Exchange Commission (SEC), all fifty State securities commissions and the Commonwealth of Puerto Rico, the Municipal Securities Rulemaking Board (MSRB), and the Commodity Futures Trading Commission (CFTC). Aon Securities is a member of the Financial Industry Regulatory Authority (FINRA) and National Futures Association (NFA).
What is the size and purpose of Kingstone's (KINS) first catastrophe bond?
Kingstone's first catastrophe bond is $125 million and provides collateralized reinsurance protection against named storm events across five Northeast states.
What is the duration and coverage area of KINS's 2025 catastrophe bond?
The catastrophe bond covers four annual risk periods from July 1, 2025, through June 30, 2029, protecting against named storms in New York, New Jersey, Connecticut, Massachusetts and Rhode Island.
What is the pricing of Kingstone's Series 2025-1 catastrophe bond notes?
The Series 2025-1 notes were priced at 4.5% and issued through 1886 Re Ltd., a Bermuda-registered special purpose insurer.
Who structured and placed Kingstone's catastrophe bond issuance?
Aon Securities LLC structured and placed the catastrophe bond issuance for Kingstone.
How does the catastrophe bond benefit KINS shareholders?
The bond provides Kingstone with diversified capital access, multi-year reinsurance capacity, and helps manage overall protection costs, strengthening the company's risk management strategy.
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