Joint Structuring and Bookrunner to Kin Sponsored Hestia Re Ltd. Series 2023-1 Notes

On March 30, 2023, Kin Interinsurance Network (“Kin”) closed their second 144A Cat Bond through Hestia Re Ltd. (“Series 2023-1 Class A Notes”)

• With Kin’s second sponsored transaction, they have cemented themselves as a core Sponsor within the 144A Cat Bond market
• Model outperformance, transparent communication with stakeholders, and a proven technology-driven advantage around underwriting and claims drove Kin’s success in their second transaction

$100 million 2023-1 Class A Notes provided per occurrence, indemnity-triggered coverage

• Risk Period: 3 years
• Peril: Named Storm
• Covered Area: Florida
• AIR Expected Loss: 1.18% (sensitivity case)
• Final Investor Spread: 9.75%

The issuance successfully tightened spread by 15.20% from the top-end of initial guidance

• Initial Price Guidance: 10.50% – 11.50% => Final Pricing: 9.75%
• Transaction drew 14% larger investor base than prior transaction, demonstrating investors’ growing familiarity with Kin and their business
• Order size as a percent of notional increased by ~85% from the 2022-1 issuance to the 2023-1 issuance^a

HTCMA acted as Joint Structuring Agent and Joint Bookrunner

• Advised on structuring considerations and marketing strategy to ensure alignment with Kin’s strategic objectives and Kin’s traditional reinsurance program
• Assisted in all aspects of the structuring and placement including, but not limited to:
  • Transaction pre-marketing and continued dialogue with investors prior to re-approaching the 144A Cat Bond market
  • Structuring and coordination with legal counsel
  • Finalizing investor presentation, advised on disclosure around subject business, and offering documents
  • Investor discussions and overall transaction marketing processes

(a) Investors with no order on the prior transaction were allocated as 100% increase for purposes of this analysis.