Kin Insurance, the direct to consumer insurtech, is back in the catastrophe bond market and for the first time seeking hurricane reinsurance across more states than just Florida, with an initial $300 million target for this new Hestia Re Ltd. (Series 2026-1) issuance, Artemis understands.
Kin secured its debut $175 million Hestia Re Ltd. (Series 2022-1) catastrophe bond cover back in April 2022. That transaction was marked down for potential losses from hurricane Ian and as we reported last year it repaid the majority of the principal back to investors with just $5 million of notes now still extended.
The company then followed that up with a $100 million Hestia Re Ltd. (Series 2023-1) issuance in March 2023 and returned again last year to sponsor its largest cat bond, securing $300 million of Florida hurricane reinsurance from the Hestia Re Ltd. (Series 2025-1) in March 2025.
Now, the insurer has returned for its fourth catastrophe bond under the Hestia Re program and Kin has also expanded its target for coverage, with this Hestia Re 2026-1 cat bond set to become the first to provide it reinsurance protection beyond Florida, we are told.
Hestia Re Ltd., Kin’s Bermuda-based special purpose insurer (SPI), is offering four tranches of Series 2026-1 notes, preliminarily targeting $300 million in size. The notes will be sold to investors and the proceeds used to collateralize reinsurance agreements between the SPI and ceding company.
The ceding entities are initially the Kin Interinsurance Network and the Kin Interinsurance Nexus Exchange, but Kin will be able to add additional covered cedents should it introduce further underwriting entities during the term of the cat bond. It’s the first time the reciprocal exchange has been named as a cedent from the start.
Across the four tranches of notes, the largest component of coverage will be Florida named storm reinsurance we understand, with one tranche aiming for broader coverage across a number of states excluding Florida. One tranche is also a single year, zero coupon set of notes that are riskier.
All four tranches of Hestia Re 2026-1 cat bond notes will provide Kin with fully-collateralized named storm reinsurance, on an indemnity trigger and per-occurrence basis, across risk periods beginning from June, sources said.
A currently $100 million of Hestia Re Series 2026-1 Class A tranche of notes will provide Florida named storm reinsurance across a three year term. The coverage would attach at $300 million of losses and exhaust at $400 million, we understand, giving them an initial attachment probability of 3.1% and an initial base expected loss of 2.86%, and they are being offered to cat bond investors with price guidance in a range from 8.25% to 9%, we are told.
A currently $100 million of Hestia Re Series 2026-1 Class B tranche of notes will also provide Florida named storm reinsurance across a three year term. The coverage would attach at $200 million of losses and exhaust at $300 million, giving them an initial attachment probability of 6.06% and an initial base expected loss of 3.67%, and they are being offered to cat bond investors with price guidance in a range from 10% to 11%, we understand.
A currently $25 million of Hestia Re Series 2026-1 Class C tranche of notes will also provide Florida named storm reinsurance but only over a one year term and these are the zero coupon notes. The coverage would attach at $80 million of losses and exhaust at $175 million, giving them an initial attachment probability of 16.88% and an initial base expected loss of 13.09%, and they are being offered to cat bond investors with price guidance of between 74% and 75% of par, sources explained.
The final currently $75 million of Hestia Re Series 2026-1 Class D tranche of notes will provide named storm reinsurance across a three year term for the states of Alabama, Georgia, Louisiana, Missouri, Mississippi, South Carolina, Tennessee, Texas and Virgina. Their coverage would attach at $85 million of losses and exhaust at $185 million, giving them an initial attachment probability of 3.82% and an initial base expected loss of 2.27%, and they are being offered to cat bond investors with price guidance in a range from 6.25% to 7%, we’ve learned
It’s the broadest coverage Kin has sought from the catastrophe bond market so far, indicating the growing reinsurance needs of the tech-focused underwriting company as it expands its property insurance business further beyond Florida.
You can read all about the Hestia Re Ltd. (Series 2026-1) catastrophe bond from Kin and every other cat bond deal issued in our extensive Artemis Deal Directory.
