Kin Insurance’s reciprocal carrier The Kin Interinsurance Network has secured a second US $100 million multi-year private placement catastrophe bond with special purpose insurer Hestia Re.
Kin’s new arrangement with Hestia Re provides its network with indemnity-based coverage for large hurricanes and other named storms affecting Florida. The mandate brings Hestia Re’s total outstanding limit to $275 million.
In addition to securing the targeted $100 million in notional limit, investor demand caused the transaction to tighten by 175 basis points from the wide end of the initial price guidance.
The bond transaction closure follows Kin’s recent upside of its Series D round of funding by $15 million, taking the total round to $109 million,
Reinsurance broker Howden Tiger Markets & Advisory and Swiss Re Capital Markets acted as joint book-runners on the transaction.
Commenting on the bond’s successful completion, Jerry Faden, Kin’s chief financial officer says: “Kin is pleased to see investors recognise the value of our technology and direct-to-consumer model.”
Faden adds: “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.”
