Anchor Re’s Gateway Re 2023-3 is the first-ever 144A catastrophe bond transaction to leverage PCS county-level catastrophe loss reporting in a trigger.
SageSure, one of the largest independent managing general underwriters focused on providing catastrophe-exposed property insurance and Anchor Re, a captive reinsurance vehicle, today announced the successful close of Anchor Re’s debut $50 million catastrophe bond. At pricing below the transaction’s initial guidance, Anchor Re’s Gateway Re Series 2023-3 catastrophe bond will provide multi-year retrocessional protection against a series of US named storms for SageSure’s carrier partners SURE and SafePort.
Anchor Re’s debut catastrophe bond is unique in the insurance-linked securities (ILS) market because it is structured to use Property Claim Services (PCS) county-level catastrophe loss reporting in the trigger. The catastrophe bond leverages the most granular loss estimate data available, which enhances Anchor Re’s ability to manage basis risk and capital and provides greater transparency to ILS investors.
“We’re excited to see strong investor support for Anchor Re’s first catastrophe bond,” said Travis Lewis, Director of Anchor Re. “Anchor Re was formed to maximize capital and capacity efficiency, and this innovative catastrophe bond further bolsters the support it can provide for SURE and SafePort’s reinsurance programs.”
The catastrophe bond will support Anchor Re’s ability to provide SURE and SafePort with retrocessional coverage against a series of qualifying named storms in a single year.
This transaction marks SageSure’s fourth entry into the ILS market in 2023, demonstrating the MGU’s sophisticated approach to reinsurance arrangements. Earlier this year, SageSure supported SURE in the $355 million Gateway Re 2023-1 catastrophe bond, the $100 million Gateway Re 2023-2 second and subsequent event catastrophe bond, and SafePort’s debut $125 million Gateway Re II 2023-1 catastrophe bond.
“Since 2022, SageSure has been championing the essential role of capital markets in our carrier partners’ reinsurance placements,” said Terrence McLean. “We greatly appreciate the ILS investor support for our partners’ reinsurance programs that enable SageSure to continue innovating in challenging property insurance markets.”
As with previous Gateway Re transactions this year, Swiss Re Capital Markets acted as the sole structuring agent and bookrunner.
“Swiss Re Capital Markets is proud to have structured and placed SageSure's innovative second and subsequent event cover for its captive reinsurer,” said Jean-Louis Monnier, Head of ILS at Swiss Re. “This fourth issuance under the Gateway Re program is designed with structural features that are accretive to ILS investors, while it provides valuable sideways coverage for Anchor Re. The continued success of the franchise reaffirms SageSure's presence as a prominent ILS sponsor and investors' confidence in SageSure and the Gateway Re program."
About Anchor Re
Founded in 2020, Anchor Re is an Arizona-domiciled captive reinsurer that provides scalable capacity exclusively for SageSure’s carrier partners. To date, Anchor Re has raised $100 million in capital.
About SageSure
SageSure is the managing general agent pioneering ways people protect their American Dream. A leader in catastrophe-exposed property insurance, SageSure was founded in 2009 to deliver reliable products, exceptional customer experiences, and strong underwriting results in challenging insurance markets. SageSure currently operates in 14 states and provides home, flood, and commercial coverage on behalf of its highly rated carrier partners. With more than $1 billion of inforce premium and 600 employees across the country, SageSure is the largest residential property insurance MGU in the US. To learn more, visit sagesure.com.
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Contacts
Walker Sands
sagesure@walkersands.com
