Latest issuance brings SageSure-supported Gateway Re franchise to $1.16 billion in issued risk capital.
SageSure, one of the largest managing general underwriters focused on catastrophe-exposed markets, and SureChoice Underwriters Reciprocal Exchange (“SURE”), a policyholder-owned reciprocal exchange, today 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.
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,” said Ed Konar, President of 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.”
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,” said Terrence McLean, President and CEO of 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.”
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,” said Jean-Louis Monnier, CEO of 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."
About SURE
SURE is the member-owned insurance company for reliable coastal property protection. Founded in 2021, SURE is managed by a team of experienced and passionate insurance leaders who believe in building a safer world, one coastal property at a time. With more than 240,000 policyholders and more than $725 million of inforce premium to date, SURE has grown rapidly to meet the needs of challenging markets while prudently managing exposure. As the first Texas-domiciled reciprocal since 2004, SURE is customer-focused by design and offers homeowners, dwelling fire, flood, and commercial coverage through an exclusive partnership with SageSure. SURE is rated A, Exceptional, by Demotech, Inc. and is currently available in Alabama, California, Florida, Louisiana, Mississippi, North Carolina, South Carolina, and Texas. To learn more, visit sureins.com.
About SageSure
SageSure is the managing general agent specializing in coastal residential and commercial property insurance. SageSure offers more than 50 competitively priced insurance products in 14 coastal states on behalf of its carrier partners, serves more than 550,000 policyholders, and has more than $1.6 billion of inforce premium. Since its launch in 2009, SageSure has been pioneering property insurance through its market-leading online quoting and binding platform and its sophisticated risk modeling and scoring technology. For more information, visit sagesure.com.
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Contacts
Walker Sands
sagesure@walkersands.com
