SageSure, SURE Close Second and Subsequent Event $130 Million Catastrophe Bond

The latest issuance brings SageSure-supported Gateway Re franchise to $1.16 billion in issued risk capital.

(Image source: SageSure homepage.)

SageSure (Jersey City, N.J.), one of the largest managing general underwriters focused on catastrophe-exposed markets, and SureChoice Underwriters Reciprocal Exchange (SURE, Houston), a policyholder-owned reciprocal exchange, have announced the close of the Gateway Re 2024-2 second and subsequent event catastrophe bond at $130 million, with pricing 75 bps tighter than the mid-point of the initial price guidance. With this latest transaction, SageSure-supported catastrophe bonds issued by Gateway Re represent $1.16 billion in risk capital, according to a statement from the company.

Ed Konar, President, SURE.

The issuance marks SURE’s second successful visit to the global insurance-linked securities (ILS) market this year, following the recently closed $250 million Gateway Re Series 2024-1 catastrophe bond. The 2024-2 notes provide second and subsequent event loss protection for both SURE and SageSure’s other affiliated reciprocal exchange Elevate through the end of the 2024 Atlantic hurricane season.

“We are grateful for the continued support we see from capital markets,” comments Ed Konar, President, SURE. “This issuance provides an additional layer of named-storm protection during this year’s hurricane season, enabling SURE to protect more property owners in catastrophe-exposed regions.”

Terrence McLean, President and CEO, SageSure.

After announcing a notional range of $100 to $130 million, SURE was able to secure its full target limit of $130 million, signaling strong ILS support for SageSure and its underwriting partners.

“SageSure is grateful for the ILS community’s confidence in SURE and the Gateway Re franchise,” says Terrence McLean, President and CEO, SageSure. “Catastrophe bonds have been an integral part of our underwriting partners’ reinsurance programs since 2022. The continued support from ILS investors enables growth in markets that need our solutions most.”

Competitive Pricing and Strong Execution

Jean-Louis Monnier, CEO, Swiss Re Capital Markets Corporation.

Swiss Re Capital Markets again served as the sole structuring agent and bookrunner for the issuance.

“Swiss Re is excited to once again partner with SURE and SageSure on this successful second-event catastrophe bond, a risk profile rarely seen in the ILS market,” comments Jean-Louis Monnier, CEO, Swiss Re Capital Markets Corporation. “Structured as an efficient zero-coupon note, the Gateway Re issuance achieved competitive pricing and a remarkably strong execution. This transaction is a testament to the continued investor support for SURE, SageSure, and the Gateway Re franchise. It also demonstrates SURE and SageSure’s agility in securing different forms of alternative capital capacity.”

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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