SageSure cat bond coverage for underwriting partners surpasses $1bn

SageSure, the specialist independent managing general underwriter of property catastrophe exposed insurance, has now procured over $1 billion in catastrophe bond backed reinsurance coverage for its underwriting partners, with the completion of the most recent $250 million Gateway Re Ltd. (Series 2024-1) issuance.

SageSure has been building reinsurance capacity for its underwriting partners using the appetite of capital market investors, through a series of Gateway named catastrophe bonds since May 2022.

Since then, the MGU has seen now four Gateway Re Ltd. cat bonds issued that protect its reciprocal change underwriting vehicles, the $150m Gateway Re Ltd. (Series 2022-1), the $355m Gateway Re Ltd. (Series 2023-1), the $100m Gateway Re Ltd. (Series 2023-2) second event deal, and now $250 million Gateway Re Ltd. (Series 2024-1).

In addition, there has also been a $125m Gateway Re II Ltd. (Series 2023-1) issuance for two other SageSure-linked insurance carriers, a $50 million county-weighted retro cat bond in Gateway Re Ltd. (Series 2023-3), that have all completed.

Taking total completed and settled Gateway Re catastrophe bond issuance to $1.03 billion of reinsurance risk capital secured for SageSure’s underwriting partners.

In addition, there is another currently $130 million Gateway Re Ltd. (Series 2024-2) cat bond for second and subsequent event reinsurance cover that is still in the market.

As we reported earlier today, that new deal currently looks set to price at an attractive level for the sponsor.

So, within another two weeks, the SageSure linked cat bond issuance tally under the Gateway Re franchise will hit $1.16 billion of risk capital issued.

Today, SageSure highlighted that the recently completed Gateway Re 2024-1 catastrophe bond settled to provide $250 million of reinsurance, which was a 67 percent upsize from the midpoint of its initial $100-$200 million target range.

At the same time, the pricing of the Class AA and Class A notes fell 20 percent and 17 percent respectively, below the initial mid-point guidance.

SageSure notes that “The execution for the Gateway Re Series 2024-1 catastrophe bond was particularly strong, signaling continued support for SageSure and its underwriting partners from the global insurance-linked securities (ILS) market.”

“Since 2022, capital markets have played a key role in SURE’s reinsurance program,” Ed Konar, President of SURE commented. “The latest Gateway Re catastrophe bond issuance further bolsters SURE’s multi-year named storm reinsurance protection, and we look forward to the measured growth it will support.”

“SageSure is proud to support our underwriting partners in securing diversified, multi-year reinsurance capacity,” added Terrence McLean, CEO of SageSure. “This transaction brings total catastrophe bond issuances across our underwriting partners to more than $1 billion in only 24 months. We are grateful to the ILS investor community for their continued support that enables us to serve markets where our solutions make a significant impact.”

Swiss Re Capital Markets again acted as the sole structuring agent and bookrunner for the latest Gateway Re 2024-1 issuance.

“We are excited to again advise SURE and SageSure on this successful issuance by Gateway Re,” explained Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation.

“Broad investor demand and competitive pricing of the placement illustrate confidence in SURE, SageSure, and are a testament to the strength of the Gateway Re franchise.”

The Gateway Re 2024-1 issuance will provide named storm reinsurance protection for both SURE and SageSure’s other affiliated reciprocal exchange Elevate in Alabama, North and South Carolina, Louisiana, Mississippi, and Texas with the optionality to add New York and/or Virginia for the multi-year Class AA tranche.

You can read all about this new Gateway Re Ltd. (Series 2024-1) catastrophe bond and every other cat bond deal in the Artemis Deal Directory.