Kin aims to upsize Hestia Re 2026-1 cat bond to as much as $335m

Kin Insurance, the direct to consumer insurtech, is now aiming to upsize its new catastrophe bond, with the revised target now being to secure between $325 million and as much as $335 million of fully-collateralized named storm reinsurance protection from the Hestia Re Ltd. (Series 2026-1) issuance, Artemis can report.

Kin returned to the catastrophe bond market earlier this month for its fourth catastrophe bond under the Hestia Re program, with the company also expanding its target for coverage, with this Hestia Re 2026-1 cat bond set to become the first to provide the insurer with reinsurance protection beyond Florida.

Initially Kin was seeking a $300 million source of protection for this new Hestia Re Ltd. 2026-1 deal, but now, we’ve learned that Kin’s target size for this new cat bond has slightly increased, with between $325 million and $335 million of fully-collateralized named storm reinsurance protection now sought.

At the same time the targeted pricing for three of the Hestia Re Series 2026-1 cat bond tranches has fallen, while the riskier, single year, zero coupon set of notes has moved to the top of its price guidance, our sources have said.

Kin’s Bermuda-based special purpose insurer (SPI), Hestia Re Ltd. is offering four tranches of Series 2026-1 notes, now targeting between $325 million and $335 million in size. The notes will be sold to investors and the proceeds used to collateralize reinsurance agreements between the SPI and ceding company.

The ceding entities are initially the Kin Interinsurance Network and the Kin Interinsurance Nexus Exchange. However, as we’ve explained before, Kin will be able to add additional covered cedents should it introduce further underwriting entities during the term of the cat bond. This also marks the first time the reciprocal exchange has been named as a cedent from the start.

Across the four tranches of Hestia Re 2026-1 cat bond notes, the largest component of coverage will be Florida named storm reinsurance, with one tranche aiming for broader coverage across a number of states excluding Florida.

As mentioned, one tranche is also a single year, zero coupon set of notes that are riskier.

All four tranches of Hestia Re 2026-1 cat bond notes will provide Kin with fully-collateralized named storm reinsurance, on an indemnity trigger and per-occurrence basis, across risk periods beginning from June.

The still $100 million tranche of Hestia Re Series 2026-1 Class A tranche of notes will provide Florida named storm reinsurance across a three year term. The coverage would attach at $300 million of losses and exhaust at $400 million, giving them an initial attachment probability of 3.1% and an initial base expected loss of 2.86%.

These notes were initially being offered to cat bond investors with price guidance in a range from 8.25% to 9%, which we’re now told had been revised to a range of 7.5% to 8.25%.

A still $100 million tranche of Class B tranche of notes will also provide Florida named storm reinsurance across a three year term. The coverage would attach at $200 million of losses and exhaust at $300 million, giving them an initial attachment probability of 6.06% and an initial base expected loss of 3.67%.

These notes were originally offered to cat bond investors with price guidance in a range from 10% to 11%, which has now been revised to a range of 9.5% to 10%, we understand.

The originally $25 million of Hestia Re Series 2026-1 Class C tranche of notes, are now targeted at between $25 million and $35 million in size. The Class C notes will also provide Florida named storm reinsurance but only over a one year term and these are the zero coupon notes. The coverage would attach at $80 million of losses and exhaust at $175 million, giving them an initial attachment probability of 16.88% and an initial base expected loss of 13.09%.

These notes were originally offered to cat bond investors with price guidance of between 74% and 75% of par, but have now been revised to a single figure of 74%, so the top of initial guidance.

The final originally $75 million of Class D tranche of notes are now targeted at $100 million in size. The Class D notes will provide named storm reinsurance across a three year term for the states of Alabama, Georgia, Louisiana, Missouri, Mississippi, South Carolina, Tennessee, Texas and Virgina. Their coverage would attach at $85 million of losses and exhaust at $185 million, giving them an initial attachment probability of 3.82% and an initial base expected loss of 2.27%.

These notes were initially offered to cat bond investors with price guidance in a range from 6.25% to 7%, which has now been revised to a range of 5.75% to 6.25%.

As a result, it seems Kin will likely secure more than its initially targeted reinsurance from its latest catastrophe bond.

As a reminder, you can read all about the Hestia Re Ltd. (Series 2026-1) catastrophe bond from Kin and every other cat bond deal issued in our extensive Artemis Deal Directory.