Kin Insurance today announced that the Kin Interinsurance Network, its reciprocal insurance carrier, has successfully closed a $175 million private placement catastrophe bond transaction. Kin entered into a multi-year reinsurance arrangement with Hestia Re Ltd., a newly established special purpose insurer in Bermuda (“Hestia Re”), which will provide the Kin Interinsurance Network with indemnity-based coverage for large hurricanes and other named storms affecting the State of Florida.
“Our first catastrophe bond will be an integral part of Kin’s broader reinsurance program which protects our company,” said Angel Conlin, Chief Insurance Officer at Kin. “The transaction also highlights our strong support from capital market investors, continued backing by industry-leading reinsurers, and ability to bring more capital directly into our growing business, which will be important as we explore subsequent alternative risk transfer options in the future.”
Although the transaction was announced with an initial target of $100 million, the catastrophe bond was upsized to $175 million based on the support received from investors. Swiss Re Capital Markets and TigerRisk Capital Markets & Advisory acted as joint structuring agents and joint bookrunners on the transaction.
“Swiss Re Capital Markets is proud to have advised Kin in structuring and placing its first-ever catastrophe bond,” said Andras Bohm, Head ILS Structuring for the Americas of Swiss Re Capital Markets. “The success of the transaction and upsize to $175 million are a testament to ILS investors’ willingness to provide catastrophe risk capacity in support of Kin’s fast-growing and technology-driven direct-to-consumer business model.”