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 renewed its reinsurance coverage for the treaty year beginning July 1, 2018.
KICO has entered into various reinsurance agreements with multiple reinsurers, which include increased coverage, improved terms, and a reduction in exposure-adjusted reinsurance costs.
In terms of catastrophe excess of loss reinsurance, KICO purchased $445 million in coverage from a panel of 46 ‘A- Excellent’ rated individual reinsurers, which represented a 41.3% increase from the $315 million it purchased last year.
Accounting for the $5 million direct retention, the company is now covered for up to a $450 million ground-up loss event, which it says is sufficient to protect against a 1 in 285-year loss event.
KICO also obtained a mid-single digit exposure-adjusted rate reduction compared to the corresponding premium paid for catastrophe coverage on the expired treaty.
Additionally, it purchased Reinstatement Premium Protection for the $215 million limit attributable to the 100 year return period, and maintained its maximum pre-tax retained loss in a catastrophe event at $4 million.
In terms of per-risk excess of loss treaties, KICO secured $800,000 for maximum net single risk retention on any one loss (pre-tax) for personal lines and $750,000 for commercial lines.
It also obtained total casualty protection up to a $4.5 million single loss, covering the maximum policy limits offered by the company, and automatically renewed a facultative facility, allowing it to obtain homeowners single risk coverage up to $10 million in total insured value.
Dale Thatcher, President of Kingstone Insurance, commented: “We are pleased with the success of our reinsurance renewal. We went to the market seeking a substantial increase in coverage limit to cover our significant growth last year and were gratified to see the support from both incumbent and new markets.
“Reinsurance markets continue to be favorable for high quality buyers like Kingstone, and we were able to achieve improved terms and pricing. Both are a testament to the long-term profitability and underwriting discipline of Kingstone.
“Our strong and diverse panel of 46 reinsurers include the best reinsurers in the marketplace. We are pleased to partner with them in providing additional support and protection for our already strong financial position.”