Kin secures $100m in capacity with second multi-year catastrophe bond

Direct-to-consumer homeowners insurtech  Kin has secured $100 million in capacity through its second multi-year catastrophe bond issuance for large hurricanes and other named storms affecting the State of Florida.

Kin Interinsurance Network, the company’s reciprocal insurance carrier, closed a $100 million private placement catastrophe bond transaction, bringing Hestia Re total outstanding limit to $275 million.

The new multi-year reinsurance arrangement with Hestia Re provides the Kin Interinsurance Network with indemnity-based coverage for large hurricanes and other named storms affecting the State of Florida.

Kin said investor demand allowed the transaction to tighten by 175 basis points from the wide end of the initial price guidance. Howden Tiger Markets & Advisory and Swiss Re Capital Markets acted as joint structuring agents and joint bookrunners on the transaction.

The issuance comes on the heels of Kin’s recent upsize of its Series D round of funding by $15 million, taking the total round to $109 million to fuel its plans for growth and expansion.

“With our latest catastrophe bond issuance, Kin reaffirms its commitment to the capital markets,” said Angel Conlin, chief insurance officer at Kin. “We are proud to have once again successfully expanded our investor base, and to have established new relationships with key partners who share our vision for the future. We believe these partnerships will be instrumental in achieving our future goals.”

Jerry Fadden, Kin’s chief financial officer, said: “Kin is pleased to see investors recognize the value of our technology and direct-to-consumer model. Hestia Re remains a strategically important capital management tool; we look forward to continuing our dialogue with investors and seeing how the capital markets evolve with our risk transfer objectives.”

Mitchell Rosenberg, managing director of ILS at Howden Tiger Capital Markets & Advisory, commented: “In this dynamic market environment, Kin’s performance, transparent communication with stakeholders, and proven technology-driven advantage drove a phenomenal result. We’re pleased to advise Kin on their market-leading Cat Bond programme and are confident both the capital and traditional markets will continue to grow their support for Kin.”

Andras Bohm, head of ILS structuring for the Americas at Swiss Re Capital Markets, added: “Swiss Re Capital Markets is pleased to partner with Kin to facilitate another successful transaction. Investors appreciated Kin’s return to the ILS market, and we are proud to be a part of Kin’s strategy to grow its access to alternative capital through Hestia Re.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.