Kin Insurance has increased the amount of catastrophe reinsurance limit it will have in-force for the hurricane season by 16% for Florida risk alone, growing its reinsurance tower for that state to $1 billion.
At the same time, signalling continued expansion for the insurtech writer, Kin Insurance has also secured a $145 million catastrophe reinsurance tower for exposures in other states at the June 2024 renewals.
A year ago, Kin Insurance secured $860 million of reinsurance for Florida catastrophe events and was covering just the Kin Interinsurance Network up to the one-in-200 year return period level.
That came soon after Kin sponsored its first catastrophe bond, a $100 million Hestia Re Ltd. (Series 2023-1) deal, which is a component of the Florida reinsurance tower.
For 2024, the Hestia Re cat bond remains in-force and that multi-year coverage will have been helpful as Kin upsized its renewal this year.
Kin said its new reinsurance arrangements cover its “expanding market footprint,” and balance the robust growth plans of the underwriter with a prudent approach to risk management.
Citing “favorable economic terms”, Kin has secured $1 billion in reinsurance coverage for natural catastrophes in Florida, which it said represents protection of up to a one-in-160 year first-event loss.
It’s perhaps notable and reflective of Kin’s growth in Florida, that the larger reinsurance tower only covers the insurer to a lower return-period than the 1-in-200 year level it was protected to a year ago.
In addition, the company has purchased $140 million in coverage for catastrophe events outside Florida as well, which it said is also well in excess of the required rating agency requirements.
Kin also said that its renewed reinsurance program is backed by a consistent panel of over 35 industry-leading reinsurers, all rated A- or higher by AM Best, or providing 100% collateralized reinsurance protection.
“We’re pleased to have again completed our reinsurance program in a timely and responsible manner,” Angel Conlin, chief insurance officer at Kin said. “The continued support from our reinsurance partners validates our data enabled and technology-driven underwriting and responsive claims handling.”
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