SageSure, a managing general underwriter focused on catastrophe-exposed markets, and SURE, a policyholder-owned reciprocal exchange, have closed the Gateway Re Series 2025-1 catastrophe bond at $520 million to provide US named storm reinsurance protection. This is the ninth cat bond issuance in the SageSure-supported Gateway Re, and it is considered the franchise’s largest issuance to date.
At a nearly 27 percent upsize from its initial $410 million target, it achieved pricing approximately 10% lower than the midpoint of its initial target, indicating robust investor appetite for catastrophe risk in these markets.
Terrence McLean, President and CEO of SageSure, said: “SageSure is proud to support its carrier partners in securing the largest catastrophe bond in the history of the Gateway Re series. We are grateful for the continued investor confidence in our programs, which enables underwriting capacity where producers and policyholders need it most.”
The Gateway Re 2025-1 is notable for its structure, combining first event limit in the first three tranches and second event limit in the remaining two, providing comprehensive US named storm reinsurance protection for SageSure’s carrier partners, SURE, and SafeChoice Insurance Company.
Ed Konar, President of SURE, commented: “We are excited to see the ILS community’s support for the Gateway Re series. This diversified reinsurance protection positions SURE to operate in challenging markets and deliver more solutions to coastal property owners.“
SageSure entered the insurance-linked securities (ILS) market in 2022. With the close of this transaction, the Gateway Re franchise has secured more than $1.7 billion in cumulative notional limit to date.
The sole structuring agent and bookrunner for the Gateway Re 2025-1 issuance was Swiss Re Capital Markets.
“We are proud to collaborate with SageSure and SURE on the successful ninth issuance of the Gateway Re vehicles,” said Jean-Louis Monnier, CEO of Swiss Re Capital Markets. “The superior execution of this transaction in both price and size is a testament to the strength of SageSure’s ILS franchise.”
