Kingstone Companies added wildfire coverage to its catastrophe reinsurance program for the first time this year. The addition comes as the New York-focused insurer prepares to enter the California homeowners market.
Kingstone's California product uses wildfire models for both risk acceptability and pricing. The insurer has said it will target low-to-moderate wildfire exposure as it expands into the state.
Kingstone increased its total catastrophe loss limit to US$500 million for the period from July 1, 2026 to June 30, 2027. That is up 14% from the prior year. The cost of its core catastrophe excess-of-loss coverage fell by more than 15% on a risk-adjusted basis.
Other small and mid-cap insurers reported similar outcomes this cycle. Heritage Insurance Holdings cut its 2026-27 catastrophe program cost by about 14.7%, to roughly US$367.5 million from US$430.7 million, while adding more multi-year coverage.
Guy Carpenter's global property catastrophe rate-on-line index fell 16% at mid-year 2026, as record reinsurance capital shifted pricing power toward buyers. Kingstone's cost reduction sits within that broader trend rather than apart from it.
Kingstone kept first-event retentions unchanged at US$3.5 million for wildfire, US$5 million for named storm, and US$6 million for winter storm. The placement includes US$125 million of multi-year protection through a catastrophe bond issued last year by 1886 Re Ltd.
The Los Angeles wildfires caused an estimated US$40 billion in insured losses in January 2025, the largest wildfire loss on record. The event had limited effect on broader reinsurance pricing, according to Juniper Re's 2026 State of the Market report.
More than 34 reinsurers participated in Kingstone's program. Six of them were new to the company. The catastrophe program now costs about 11% of projected direct premiums earned, down from 13% in the previous treaty period.
Kingstone reported net income of US$40.8 million for 2025, up 122% from the prior year. Its guidance for 2026 assumes a catastrophe loss ratio of 7% to 10%, up sharply from 1.2% in 2025.
Kingstone was the 11th largest writer of homeowners' insurance in New York in 2025. It plans to keep its California business below 5% of 2026 premium as the new entry scales.
Chief executive Meryl Golden said the increased exposure over the past year led the company to raise its catastrophe limit. She said the coverage "strengthens our balance sheet protection and helps reduce the volatility of our results."
Kingstone has set a target of $500 million in annual written premium by the end of 2029.
