SageSure, a leading managing general underwriter specialising in catastrophe-exposed markets, has successfully closed the Gateway Re 2024-4 county-weighted wind cover catastrophe bond at $60m.
The amount raised, reflecting a 20% increase from the original $50m target, marks the eighth transaction in the Gateway Re series, according to InsurTech Insights.
The move was completed alongside Anchor Re, a captive reinsurance vehicle, and SureChoice Underwriters Reciprocal Exchange (SURE).
This latest issuance brings the total SageSure-supported risk capital for underwriting partners to $1.2bn in just over two years. Investors in this transaction include the ILS investor community, who have shown robust support for SageSure’s initiatives.
SageSure is known for its expertise in managing general underwriting within catastrophe-exposed markets. Its innovative approach, alongside partners like Anchor Re and SURE, has enabled the company to consistently secure substantial funding for its insurance programs.
The new funding will provide retrocessional reinsurance protection for the current hurricane season through the end of 2024. Unlike the three-year coverage offered by the previous bond issued last year, this bond uses a Property Claim Services (PCS) county-weighted catastrophe loss reporting trigger.
This feature, unique to SageSure, covers multiple states including Alabama, North and South Carolina, Louisiana, Mississippi, Texas, Virginia, and New York.
Swiss Re Capital Markets served as the sole structuring agent and bookrunner for this issuance. The bond names Anchor Re, SURE, and Elevate Reciprocal Exchange (Elevate) as cedents, offering protection against qualifying named storm events.
This issuance is SURE’s third successful transaction in the global insurance-linked securities (ILS) market this year, following the recent $130m Gateway Re Series 2024-2 catastrophe bond.
Anchor Re director Travis Lewis highlighted the importance of the bond, saying, “The structure of this catastrophe bond provides essential protection if more than one hurricane impacts our portfolio this hurricane season. We’re grateful to the ILS investor community for its continued support, which enables Anchor Re to efficiently deploy capital and capacity for SageSure’s underwriting partners’ reinsurance programs.”
Terrence McLean, President and CEO of SageSure added, “SageSure continues to find the ILS market to be a sophisticated and efficient source of risk capital to support our underwriting partners. We are grateful for the confidence in our programs we’ve seen over the last two years.”
Jean-Louis Monnier, CEO of Swiss Re Capital Markets remarked, “Swiss Re Capital Markets is proud to have secured this second and subsequent event cover for SageSure. This eighth successful issuance under the Gateway program is a remarkable feat considering that SageSure has now secured $1.2 billion of cumulative notional limit in catastrophe bonds in just over 2 years.”
“The 2024 transaction will provide valuable sideways coverage through county-weighted industry loss indices for Anchor Re, as well as SURE and Elevate.”
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