The Insurance Advocacy Forum of Florida

Kin Insurance secures $300 million catastrophe bond at significantly improved terms Market confidence drives ~70% upsizing and substantially lower pricing for reciprocal exchange’s third Cat Bond. The transaction features two tranches: a $200 million Class A tranche and a $100 million Class B tranche, both providing three years of coverage. Most notably, the transaction secured significantly improved pricing compared to Kin's previously issued catastrophe bonds, reflecting growing market confidence in Kin's underwriting approach and risk management strategies following a positive earnings announcement last month that unveiled 48% year over year revenue growth. "The success of this transaction, particularly the substantial improvement in pricing terms, validates our disciplined approach to risk selection and portfolio management," said , Chief Insurance Officer at Kin. "This enhanced protection at more favorable terms directly benefits our policyholders by strengthening our claims-paying ability while reducing our overall cost structure." Angel Conlin The new catastrophe bond represents a pivotal component of a comprehensive 2025 reinsurance program, for Kin-managed reciprocal exchanges, which protects a rapidly growing policyholder base across multiple states. Kin also announced an expansion into California this year. "Insurers and their customers have experienced higher reinsurance rates a few years in a row. We are happy to see reinsurance rates begin to decrease for our reciprocal exchanges, which will benefit our policyholders," said , CEO of Kin. "In addition to improvement in the market, the dramatically improved terms reflect investors' growing confidence in our technology-driven approach to homeowners insurance and our ability to effectively manage catastrophe exposure. This transaction strengthens the capital position of our reciprocal exchanges and supports our continued expansion while maintaining our commitment to providing affordable coverage in catastrophe-prone regions." Sean Harper Howden Capital Markets & Advisory served as the exclusive structuring agent and bookrunner for the transaction. "The substantial upsizing and favorable pricing of this transaction highlight the ILS market's strong appetite for supporting innovative and top performing insurers like the Kin reciprocals, that continue to demonstrate model outperformance, transparent communication, and a proven track record in underwriting and claims. We're proud to have helped Kin Interinsurance Network achieve these exceptional terms, which represent a significant improvement over previous issuances." Mitchell Rosenberg https://bit.ly/4hO4x3B

In Florida, the decrease in lawsuits against insurers has led to a significant shift in the property insurance market, particularly in harder-to-insure areas like Palm Beach, Broward, and Miami-Dade counties. According to Citizens’ officials, the dropping number of lawsuits has resulted in private insurers’ willingness to take on new customers, with the tri-county area accounting for the largest numbers being moved away from the insurer of last resort. This decline in litigation, as mentioned by Tim Cerio, Citizens’ president and CEO, has created a unique circumstance where private companies are stepping in to take on historically risky regions, such as Hillsborough and Orange counties. These changes are reflected in Citizens' projection of having 738,000 policyholders by the end of 2025, compared to 1.4 million in September 2023, and the elimination of 478,000 policyholders in 2024, mostly concentrated along the tri-county coast. The legislative changes aimed at reducing litigation have been instrumental in this transformation, with a substantial decline in the number of lawsuits filed against insurers. According to Cerio’s presentation, lawsuits against insurers peaked in 2021 with nearly 100,000 cases, while in 2024, property owners filed 57,120 lawsuits against their insurers, the lowest since 2017. These trends are indicative of a positive direction in terms of claims that escalate to litigation. As Florida navigates this evolving insurance era, close monitoring and steady maneuvering by lawmakers will be crucial to ensure a balance between fostering competition in the market and maintaining financial stability to benefit all residents. https://lnkd.in/ez5rqmXG

I'm grateful that Mangrove Property Insurance has been approved to participate in the June assumption cycle with Citizens Property Insurance Corporation policies. In total, between April and June we are authorized to assume up to 81,000 homeowners and dwelling property policies, subject to our underwriting and diversification criteria. We are focused on a disciplined launch, robust underwriting, a long-term approach, and high levels of service. Our June assumption approval provides additional time for independent agents to help Citizens policyholders explore Mangrove's coverage options. We are also focused on our preparations to begin writing new homeowners' insurance policies in Florida on a voluntary basis. https://lnkd.in/eNsrrd38 #Florida #reinsurance #insurance #homeowners #homeownersinsurance #independentagents #insuranceagents Matt Sczesny WPTV Mark Friedlander Insurance Information Institute

Analysis of market shares of different P&C reinsurance players over the last 10 years using our P&C Re Market Model reveals some interesting dynamics. The share of the two largest Europeans is arguably ‘topping out’, and they are, in fact, losing share to “scale challengers”. This explains why both are pushing their direct corporate and specialty propositions. (However, look beneath the surface and SwissRe’s Corporate Solutions and Munich Re’s Global Specialty Insurance are pursuing quite different strategies). The scale challengers are gaining share with RenaissanceRe and Arch Capital Group Ltd. posting some really impressive growth figures over the period. Please contact the team or me a line if you’d like to get more insight into the P&C reinsurance market. Or, read our 2024 paper about strategic imperatives for P&C reinsurers in 2025: https://bit.ly/4j4FHgV

"...While another worthwhile venture might be in exploring ways to buy reinsurance more efficiently, or how innovative risk transfer such as parametric triggers might be able to play a role and create different, perhaps better, economics for carriers in their interactions with reinsurers..." DM me to explore what's possible, in reinsurance partnership with NormanMax Insurance Solutions.

The tide is turning in Florida’s insurance landscape. The hard market, which usually lasts around three to five years, lasted nearly seven. That’s unheard of, but good news is on the horizon. We’re starting to see positive shifts in property insurance. Rates are flattening and, in some cases, even decreasing. It’s not happening across the board yet, but we’re seeing changes in the condo market, and residential and commercial properties will follow suit. We’re finally seeing results from the legislative reforms implemented in late 2022, which create more predictability and control for property owners. This means businesses and homeowners can start budgeting instead of taking whatever coverage they can get. Are you feeling the shift, too?

The week’s three insurance events we think your C-Suite should be talking about… → AI now generates functional malware with minimal prompting ? Researchers created AI-powered ransomware that's "four errors away" from deployment. Is it opening up possible sophisticated attacks to non-technical criminals? _ _ _ _ _ __ _ __ _ _ → Shadow AI adoption threatens compliance. ? Our team wrote about work we did with a client to help them understand these risks. Specifically those being posed by their employees use of Chinese AI tools without an understanding of cross-border data implications that could trigger privacy and even regulatory issues. Are AI tools like DeepSeek and Manus creating these hidden risks? _ _ _ _ _ __ _ __ _ _ → Evan Greenberg, Chubb's CEO issued his annual letter to shareholders. We think it’s the gold standard in our industry. Mr. Greenberg touches on a number of issues moving the market. And one we’re particularly interested in: litigation funding, "turning legal claims into an asset class." ? “litigation costs are rising 9% annually while only 40￠ of every dollar reaches plaintiffs” A massive issue for our entire industry. _ _ _ _ _ __ _ __ _ _ If you’re new here? Each week our team analyzes 200+ insurance articles to deliver the most impactful insights for our financial institutions clients. Join the pride and thousands of financial institutions for the full write up and our now bi-weekly insights. Stay covered everybody! LION Specialty