Kingstone secures catastrophe reinsurance program for 2024/25 | Insurance business America
The contract resulted in savings of $6 million
reinsurance
By Kenneth Araullo
Northeast-based property and casualty (P&C) insurance holding company Kingstone Companies has announced the completion of its catastrophe reinsurance program for the period July 1, 2024 to June 30, 2025.
Jennifer Gravelle (pictured above, left), CFO at Kingstone, highlighted the placement and how it compares to the previous contract period.
“Kingstone has completed its 2024/2025 catastrophe reinsurance placement. The company purchased $275 million of the total catastrophe limit and reduced its first event deductible to $5 million. The total cost is approximately 14% of projected direct premiums earned, a significant reduction from 19% in the previous contract period,” Gravelle said.
In a press release, Gravelle emphasized that the company has tightened underwriting and limited new business writing over the past year to better manage catastrophe risk and reduce probable maximum loss (PML). Although reinsurance prices rose, they were not as strong as forecast.
As a result, Kingstone was able to reduce the cost of its 2024/2025 reinsurance contract by approximately $6 million, improving forecast full-year earnings by approximately $0.21 per share and providing better protection through a lower first event deductible. These savings will be reflected in the third and fourth quarter 2024 results.
Meryl Golden (pictured above right), CEO of Kingstone, thanked the company’s more than 25 partners for their reinsurance support.
“In 2024, given expectations of a slowdown in the reinsurance market and confidence in our rates, we have readjusted our underwriting policies to accept more new business. This has resulted in premium growth of more than 20% in our core New York State business, which continues to accelerate, while at the same time we were able to significantly reduce costs for this year’s reinsurance placement,” said Golden.
Kingstone is a regional P&C insurance holding company in the North East with its main operating subsidiary, Kingstone Insurance Company (KICO). KICO, a New York-based transportation company, underwrites business through retail and wholesale agents and brokers.
KICO actively underwrites personal and commercial auto insurance in New York and was the 15th largest provider of home insurance in New York in 2023. KICO is also licensed in New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire and Maine.
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2024-06-21 13:50:00
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