Kin secures $300 million catastrophe bond at significantly improved terms
CHICAGO — March 25, 2025 — Kin Interinsurance Network, one of the reciprocal exchanges managed by Kin, the pioneering, direct-to-consumer, digital home insurance provider, today announced the successful closure of a $300 million catastrophe bond transaction through Hestia Re Ltd., marking the reciprocal exchange’s third venture into the insurance-linked securities (ILS) market. The bond, which provides multi-year indemnity-based protection against named storms in Florida, was upsized by more than 70% from the expiring bond originally initiated in 2022, and 50% from the initial 2025 offering, due to strong investor demand.
The transaction features two tranches: a $200 million Class A tranche and a $100 million Class B tranche, both providing three years of coverage. Most notably, the transaction secured significantly improved pricing compared to Kin's previously issued catastrophe bonds, reflecting growing market confidence in Kin's underwriting approach and risk management strategies following a positive earnings announcement last month that unveiled 48% year over year revenue growth.
"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. "This enhanced protection at more favorable terms directly benefits our policyholders by strengthening our claims-paying ability while reducing our overall cost structure."
The new catastrophe bond represents a pivotal component of a comprehensive 2025 reinsurance program, for Kin-managed reciprocal exchanges, which protects a rapidly 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. "In addition to improvement in the market, the dramatically improved terms reflect investors' growing confidence in our technology-driven approach to homeowners insurance and our ability to effectively manage catastrophe exposure. This transaction strengthens the capital position of our reciprocal exchanges and supports our continued expansion while maintaining our commitment to providing affordable coverage in catastrophe-prone regions."
Howden Capital Markets & Advisory served 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, that continue to demonstrate model outperformance, transparent communication, and a proven track record in underwriting and claims," said Mitchell Rosenberg, Co-Head of Global ILS at Howden Capital Markets & Advisory. "We're proud to have helped Kin Interinsurance Network achieve these exceptional terms, which represent a significant improvement over previous issuances."
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*Disclaimer: Policies in California are marketed and distributed through Kin Insurance Services (CA License #0L32036), a California surplus lines broker. California policies are underwritten by a non-admitted carrier in partnership with Kin.
About Kin
Kin is the only pure-play, direct-to-consumer digital insurance provider focused on the growing homeowners insurance market. Kin offers more convenient and affordable coverage by eliminating the need for external agents. Kin’s technology platform delivers a seamless user experience, customized options for coverage, and fast, high-quality claims service. Behind the scenes, Kin utilizes thousands of data points about each property to provide accurate pricing. To learn more, visit www.kin.com.
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