Kingstone’s debut 1886 Re cat bond enhances access to efficient, diversified capital: CEO

According to Meryl Golden, President and CEO of Kingstone Companies Inc., the firm’s recently completed debut catastrophe bond, the $125 million 1886 Re Ltd. (Series 2025-1), enhances its access to efficient, diversified capital and also helped manage its costs of reinsurance protection.

As we reported last week, the 1886 Re 2025-1 catastrophe bond was recently priced to secure subsidiary Kingstone Insurance Company a 25% upsized $125 million multi-year source of fully-collateralized named storm reinsurance protection from the capital markets.

The cat bond provides Kingstone with four years of indemnity trigger and per-occurrence reinsurance against named storm and hurricane losses in the states of New York, New Jersey, Connecticut, Massachusetts and Rhode Island.

Kingstone’s initial target was for $100 million of protection, but thanks to a positive investor response the 1886 Re cat bond was placed by Aon Securities to secure the upsized $125 million of reinsurance limit for its client.

At the same time, the notes were priced to pay investors an initial risk interest spread of 4.5%, which was within the lower-half o the initial price guidance on offer.

Kingstone Companies said its debut catastrophe bond marks, “a significant milestone in the company’s strategic risk transfer and capital management initiatives.”

Meryl Golden, President and Chief Executive Officer of Kingstone, further explained, “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.”

Also commenting on the successful catastrophe bond placement for its client, Richard Pennay, CEO of Aon Securities LLC, added, “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.”

With this being the latest catastrophe bond issuance to settle in the market in 2025 yesterday, the 1886 Re deal has now lifted annual cat bond issuance to an even higher record for the stage of the year, with our interactive chart now showing over $14.4 billion of cat bond risk capital successfully brought to market so far.

Just a handful of years ago that number would have been a record for full-year issuance and cat bond issuance in 2025 has already beaten the previous high for the first ten months of any year in the market’s history, which you can analyse using this chart by deselecting months from the chart categories at the bottom.

You can read all about this new 1886 Re Ltd. (Series 2025-1) catastrophe bond and every other cat bond deal in the extensive Artemis Deal Directory.