Kin Insurance prices $175M cat bond – Artemis

Kin Insurance Inc. has priced the Hestia Re Ltd. (Series 2022-1) catastrophe bond issuance at a size of $175 million, Artemis reported.

The bonds were priced at the upper end of the initial guidance range.

Hestia Re Ltd. will issue a single tranche of notes that have a price guidance of 8.75% to 9.5%, an initial attachment probability of 2.71% and an initial expected loss of 1.97% at the base scenario, according to the report.

The bond will collateralize reinsurance agreements between Hestia Re and Kin Interinsurance Network, providing it with $175 million of reinsurance cover against losses to its personal property lines portfolio from named storms or hurricanes across Florida, on an indemnity trigger basis and across a three-year term.

Kin Insurance was initially seeking $100 million or more of reinsurance protection from the debut catastrophe bond.