Kin Interinsurance Network has announced the successful closure of a $300 million catastrophe bond transaction through Hestia Re Ltd. This marks Kin's third venture into the insurance-linked securities market. The bond, which offers multi-year indemnity-based protection against named storms in Florida, was increased by over 70% from its original size in 2022 and by 50% from the initial 2025 offering due to strong investor interest.
The transaction includes two tranches: a $200 million Class A tranche and a $100 million Class B tranche, both providing three years of coverage. Notably, the bond secured improved pricing compared to previous issuances, reflecting increased market confidence in Kin's risk management strategies following a recent earnings report showing 48% revenue growth year over year.
"The success of this transaction, particularly the substantial improvement in pricing terms, validates our disciplined approach to risk selection and portfolio management," said Angel Conlin, Chief Insurance Officer at Kin. She added that the enhanced protection benefits policyholders by strengthening claims-paying ability while reducing costs.
This new catastrophe bond is part of Kin's comprehensive 2025 reinsurance program for its managed reciprocal exchanges, which protect a growing policyholder base across multiple states. Kin also announced an expansion into California this year.
"Insurers and their customers have experienced higher reinsurance rates a few years in a row. We are happy to see reinsurance rates begin to decrease for our reciprocal exchanges, which will benefit our policyholders," said Sean Harper, CEO of Kin. He noted that improved terms reflect investors' confidence in Kin's technology-driven approach and ability to manage catastrophe exposure effectively.
Howden Capital Markets & Advisory acted as the exclusive structuring agent and bookrunner for the transaction. "The substantial upsizing and favorable pricing of this transaction highlight the ILS market's strong appetite for supporting innovative and top-performing insurers like the Kin reciprocals," said Mitchell Rosenberg, Co-Head of Global ILS at Howden Capital Markets & Advisory.
For more information about Kin's services or to get a quote, visit their website.
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