NASDAQ-listed US insurer Kingstone Companies increased its cat treaty limit by over 40 percent at the 1 July renewals while enjoying a “single digit” reduction in the risk premium paid to its panel of 46 reinsurers.


The insurer increased its cat limit from $315mn on 1 July 2017 to $445mn at 1 July 2018 over a $5mn retention.

The insurer explained the increase was in response to its own growth together with a desire to maintain coverage in excess of a one in a 250-year event.

The $50mn top layer is written for two years and a separate personal accident quota share reduces the firm’s effective retention from $5mn to $4mn.

In a statement, the company said it gained a “mid-single digit exposure-adjusted rate reduction” on the renewal compared to the previous year.

The news is further confirmation of the fierce competition for US cat business among reinsurers despite the circa $140bn of insured cat losses in 2017, the vast majority in the US.

Separately, Kingstone renewed its per risk excess of loss treaties with an $800,000 single risk retention for a personal lines loss and a $750,000 retention for a commercial lines loss. It has a $4.5mn limit for any single casualty loss, which mirrors the maximum policy limits provided by the firm.

In 2017, Kingstone’s reinsurance programs enabled the group to post a full year net combined ratio of 80.6 percent.

Kingstone president Dale Thatcher said: “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.

He added:” Reinsurance markets continue to be favorable for high quality buyers like Kingstone, and we were able to achieve improved terms and pricing”.

Last year was a significant year for Kingstone which included the award of an A- AM Best financial strength rating, a $30mn equity offering and the appointment of former Selective CFO Thatcher to lead the group’s insurance company.