Two Florida-focused property insurers announced they have ended their reinsurance programs, days ahead of what some warned would be a painful June 1 renewal deadline. .
Kin Insurance Inc., a tech and data-heavy, direct-to-consumer insurer with offices in Chicago, and Slide, a Tampa-based homeowners insurer and insurtech company, said they have secured substantial reinsurance from to many reinsurers before the hurricane season begins. month.
Kin, which counts professional golfer Rory McIlroy among its investors, said in a news release that it has secured an “extraordinary” $860 million in reinsurance coverage for natural disasters, ” protects against a one-in-200-year loss in the first event.”
The company uses traditional reinsurance and catastrophe bonds for its program. “The completion of this reinsurance program is a significant achievement, considering the challenging market conditions facing major insurers,” the company said.
“The continued strong support from capital market investors and reinsurance partners validates our proactive, technology-driven approach to support policyholders, prevent losses, and better manage claims,” said Angel Conlin, chief insurance officer of Kin.
The completion comes two months after Kin announced it had raised $109 million in Series D capital investments. The move also comes 10 months after Kin Interinsurance Network submitted a use-and-file rate increase of 61.5 % for HO-3; 84.3% for DP-3; and 103.2% for condominium policies. Conlin said at a rate hearing in March that the large numbers reflect rising reinsurance rates, new rates from competitors, excessive Kin levels and a need to keep the company in the a good financial situation. Kin’s HO-3 rate hike affected about 27,150 homeowners, raising their annual premiums by an average of $1,395, the filing shows.
Slide Insurance, led by former Heritage Insurance CEO Bruce Lucas, said its completed tower exceeded regulatory and rating agency requirements and protected the company to a 185-year return period, reducing retention to $5 million, and includes all perils coverage and multi-year and third event protection.
“We are very pleased to be putting in place an oversubscribed reinsurance program, especially during a difficult market cycle,” Lucas said in a statement.
The slide has more exposure to cover this year, after it was allowed in January to acquire more than 90,000 policies from now-insolvent United Property & Casualty Insurance Co., along with $272 million in premiums.
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