Insurance broker SageSure & Partners secures a $100 million catastrophe bond deal.
SageSure's Gateway Re Series Hits $2.1 Billion Milestone with Rapidly Placed Catastrophe Bonds
SageSure, a leading managing general underwriter focused on catastrophe-exposed markets, has made a significant stride in the insurance-linked securities (ILS) market with the successful placement of the Gateway Re Series 2025-3 catastrophe bond. This latest issuance, closed in under half the typical placement timeline, brings the cumulative notional limit of the Gateway Re series to over $2.1 billion.
The Gateway Re series, a collaboration between SageSure and partners such as Auros Risk Management and Elevate Risk Management, provides protection for cedants across various states in the US. The latest issuance, the Gateway Re 2025-3 Class A notes, will provide protection across a single hurricane season for cedants Auros and Elevate in Louisiana, Mississippi, South Carolina, and Texas.
The Gateway Re 2025-3 catastrophe bond, totalling $100 million, follows two earlier 2025 issuances in the series: a $520 million Gateway Re 2025-1 (the largest in the series) and a $150 million Gateway Re 2025-2 issuance. These rapid placements have solidified SageSure's position as the seventh-largest catastrophe bond sponsor globally by total notional outstanding.
Swiss Re Capital Markets acted as the sole structuring agent and bookrunner for the Gateway Re 2025-3 catastrophe bond transaction. The strategic role of ILS markets in SageSure's carrier partners' reinsurance programs is demonstrated by this position as a leading global catastrophe bond sponsor.
The latest issuance of the Gateway Re series achieved strong execution with lowered and narrowed price guidance, indicating investor confidence. Travis Lewis, CEO of Auros Risk Management, expressed gratitude for the ILS market's confidence and looks forward to the responsible growth this issuance will support. Ed Konar, President of Elevate Risk Management, also expressed excitement about the positive response from the investor community to this catastrophe bond placement.
SageSure and Auros have also closed the Gateway Re Series 2025-2 catastrophe bond at $150 million. Auros Reciprocal Insurance Exchange, a policyholder-owned insurer, is one of the cedants benefiting from the protection offered by the Gateway Re series.
The Gateway Re series, which began in 2018, marks SageSure's eleventh catastrophe bond issuance. The cumulative notional outstanding exceeds $2.1 billion across the Gateway Re series. Terrence McLean, President and CEO of SageSure, highlighted the strategic role of ILS markets in their carrier partners' reinsurance programs with this impressive milestone.
The Gateway Re Series 2024-2 second and subsequent event catastrophe bond, totalling $130 million, is another testament to SageSure's commitment to the ILS market. This rapid succession of catastrophe bond placements underscores SageSure's significant role in catastrophe risk financing through the ILS markets.
The rapid placements of the Gateway Re Series, such as the latest $100 million Gateway Re 2025-3 catastrophe bond, reinforce SageSure's position as a major player in the reinsurance industry, with over $2.1 billion accumulated notional limit. This significant growth in the finance sector has been facilitated by the investor confidence in the events covered by the series.
