Kingstone Companies, a multi-line regional property and casualty (P&C) insurance holding company, has announced that its wholly-owned subsidiary, Kingstone Insurance Company (KICO), has reduced its personal lines quota share treaty ceding percentage from 20% to 10%, effective July 1, 2018.
Kingstone said the treaty remains on a ‘net’ of catastrophe reinsurance basis, as KICO secures all catastrophe reinsurance coverage directly, outside of the quota share arrangement.
The company previously announced the terms of KICO’s renewed reinsurance treaties for July 1, which included increased coverage, improved terms, and a reduction in exposure-adjusted reinsurance costs.
The treaties, which are scheduled to expire on June 30, 2019, also included $445 million of catastrophe excess of loss reinsurance coverage purchased from a panel of 46 ‘A- Excellent’ rated individual reinsurers.
Commenting on the latest reduction to KICO’s reinsurance treaty, Kingstone’s Chief Operating Officer Dale Thatcher said: “This gives us an excellent opportunity to keep more of the profitable business we write and to more effectively utilize the capital we’ve raised over the past year.
“We deeply appreciate the support our reinsurers have given us over the years as we’ve grown and moved into a position to increase our retention. This is a real win for Kingstone shareholders.”
