SageSure proud to support carrier partners, CEO McLean says, as its largest cat bond closes
Coastal property managing general underwriter SageSure’s CEO said it is “proud to support” its carrier partners, as its largest catastrophe bond transaction yet closes, the $520 million Gateway Re Ltd. (Series 2025-1), while executives also expressed gratitude to the insurance-linked securities (ILS) community for supporting the Gateway Re series.
SageSure returned to the catastrophe bond market in January, initially targeting $410 million of first and second event US named storm reinsurance protection for some of its underwriting entities, which eventually upsized by nearly 27% to $520 million.
The ninth issuance in the Gateway Re series achieved pricing approximately 10% lower than the midpoint of its initial target, which clearly signifies strong investor appetite for the deal across the cat bond market and reflects current deal execution trends.
With this Gateway Re 2025-1 deal priced to provide $520 million of reinsurance, SageSure has secured the largest cat bond in the history of its Gateway Re deals for its various underwriting entities, adding $520 million of limit to its capital markets backed reinsurance protection.
SageSure has been utilising the capital markets for reinsurance capacity for its underwriting partners through its Gateway Re series of cat bonds since May 2022.
Following the closure of this transaction, the SageSure-supported Gateway Re franchise has now secured more than $1.7 billion in cumulative notional limit to date.
The Gateway Re Ltd. (Series 2025-1) issuance is the first in the series that combines first event limit in the first three tranches of notes, and second event limit in the other two tranches.
All five classes of notes will provide SageSure’s carrier partners SURE and SafeChoice Insurance Company with US named storm reinsurance protection.
Terrence McLean, President and CEO of SageSure, commented: “SageSure is proud to support its carrier partners in securing the largest catastrophe bond in the history of the Gateway Re series. We are grateful for the continued investor confidence in our programs, which enables underwriting capacity where producers and policyholders need it most.”
Ed Konar, President of SURE, added: “We are excited to see the ILS community’s support for the Gateway Re series. This diversified reinsurance protection positions SURE to operate in challenging markets and deliver more solutions to coastal property owners.”
Reinsurance giant Swiss Re’s Capital Markets unit served as the sole structuring agent and bookrunner for the issuance.
Jean-Louis Monnier, CEO of Swiss Re Capital Markets, said: “We are proud to collaborate with SageSure and SURE on the successful ninth issuance of the Gateway Re vehicles. The superior execution of this transaction in both price and size is a testament to the strength of SageSure’s ILS franchise.”
You can read all about this Gateway Re Ltd. (Series 2025-1) catastrophe bond and every other cat bond deal in the Artemis Deal Directory.
