Kingstone Announces $6 Million Savings in 2024/2025 Reinsurance Treaty

Kingstone Companies, Inc. (NASDAQ:KINS), a regional property and casualty insurance holding company, has announced the finalization of its catastrophe reinsurance program for the period July 1, 2024, through June 30, 2025. The company has secured $275 million in total catastrophe limit and reduced its first event retention to $5 million. This results in a reinsurance cost of about 14% of projected direct premiums earned, down from 19% in the previous period.

According to Jennifer Gravelle, Chief Financial Officer at Kingstone, the new reinsurance arrangement will save approximately $6 million, enhancing projected full-year earnings by roughly $0.21 per share. These savings will be reflected in the third and fourth quarter results of 2024. The reduction is attributed to tightened underwriting and curtailed new business writings aimed at managing catastrophe exposure and reducing probable maximum loss.

CEO Meryl Golden acknowledged the broad support from over 25 reinsurance partners involved in the program. Kingstone has readjusted its underwriting guidelines to accept more new business, resulting in over 20% premium growth in its core New York State business while significantly reducing this year's reinsurance costs.