Kingstone Insurance Company (KICO), a wholly owned subsidiary of P&C insurance holding company, Kingstone Companies, Inc., has finalised a new 30% personal lines quota share reinsurance treaty for 2021-2022, and added another layer of protection to its existing excess of loss (XoL) programme.
This time last year, Kingstone terminated its 25% personal lines quota share treaty for 2019-2020 on a cut-off basis, stating that it had no intentions to enter into a new arrangement for 2021.
At the time, Chief Executive Officer (CEO), Barry Goldstein, said that while the firm had entered into the quota share after a very difficult 2019, the successful changes made to improve its profitability in Q3 2019 and beyond served the company well, and meant it no longer needed the surplus support of its reinsurance partners.
Now, however, Kingstone feels it prudent to lower its catastrophe single-risk retentions through two new treaties; a new and larger 30% personal lines quota share treaty for the period December 31st, 2021, through December 31st, 2022, and an additional layer to its current single risk excess of loss programme.
“The new treaties, when taken together, result in reductions to our catastrophe and single-risk retentions through June 30, 2022 to $7.4 million and $0.5 million from $10.0 million and $1.0 million, respectively,” said Meryl Golden, President of KICO.
“The quota share benefits us further by increasing our statutory surplus leading to a reduction in premium leverage going into 2022 and allowing for continued written premium growth,” added Golden.
In July of last year, Kingstone announced the completion of its 2021-2022 catastrophe reinsurance placement.