Kin Insurance, a direct-to-consumer, technology-based platform, announced it had closed a $175 million private placement catastrophe bond transaction with a newly established reinsurer.
The multi-year arrangement with Hestia Re Ltd. will back the Kin Interinsurance Network for hurricanes and other storms that may hit Florida, the company said in a news release Monday.
“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 started with a goal of $100 million but was expanded after positive response from investors. Swiss Re Capital Markets and TigerRisk Capital Markets acted as structuring agents on the transaction.
The move comes on the heels of Kin’s announcement in March that it had raised $82 million from investors, which followed $133 million in equity funding. Kin’s book of business numbers were not available, but the company has said it operates in the catastrophe-prone states of Florida, Louisiana and California. The company offers homeowners, landlord, condo, and mobile home insurance through its Kin Interinsurance Network, a reciprocal exchange owned by customers who share in the underwriting profit, Kin explained.
Privately placed cat bonds, which pay out only in cases of catastrophic storms, were first offered about 10 years ago and have grown significantly since then, according to industry news reports.
Topics Catastrophe
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