Regional property and casualty insurance holding company Kingstone Companies, Inc. managed to cut core catastrophe excess of losses (XoL) reinsurance costs by more than 15% in 2026/2027 despite purchasing more limits, improving terms and adding wildfire risk to its programs.
Mid-year reinsurance renewal reports and brokerage group commentary underscore continued weakness in catastrophe reinsurance, with Kingston the latest buyer to report a significant decline in risk-adjusted costs for its 2026-2027 renewals.
“While we increased purchase limits, added wildfires and improved terms, our core catastrophe excess loss coverage costs fell more than 15% on a risk-adjusted basis. Catastrophe program costs were approximately 11% of projected direct earned premiums, down from 13% during the previous contract period. This coverage strengthens our balance sheet protection and helps reduce volatility in our performance while supporting our continued profitable growth,” said Meryl Golden, President and Chief Executive Officer.
Kingston’s 2026/2027 core catastrophe reinsurance program is in effect from July 1, 2026 to June 30, 2027, providing the company with $500 million in loss limits. Reinsurance limits have increased by 14%, or $60 million, compared to the 2025/2026 placement, while the 2025/2026 placement itself has increased by 57%, or $160 million, compared to the same period last year.
Kingston will be able to keep first-event reserves at $3.5 million for wildfires, $5 million for named storms and $6 million for winter storms when the contract is renewed in July 2026.
The $500 million in reinsurance secured in 2026/2027 includes $125 million in multi-year limits through 1886 Re Ltd. (Series 2025-1), the carrier’s first Rule 144A catastrophe bond issued in 2025.
Golden said: “I am pleased to announce that we have successfully completed the 2026/2027 catastrophe reinsurance placement on favorable terms. Due to the significant increase in risk exposure over the past year, we have decided to increase the catastrophe reinsurance limit by US$60 million to US$500 million.”
Golden added: “We are grateful for the broad support of our valued reinsurance partners, with more than 34 reinsurers participating in the program, including six new reinsurers. Their continued confidence underscores the quality of our underwriting, the strength of our claims execution and our disciplined approach to risk management. Following the completion of this placement, we will be well-positioned to continue our profitable growth trajectory and achieve our goal of achieving $500 million in annual written premiums by the end of 2029.”
