Amwins and Flexpoint Ford back cat-focused property writer SageSure

SageSure, the expansive catastrophe exposed property underwriting specialist managing general underwriter (MGU), has received significant backing from two prime companies in the re/insurance and investments space, insurance origination and distribution specialist Amwins and private investor Flexpoint Ford.

SageSure has announced the successful close of a $250 million equity investment, led by Amwins and Flexpoint Ford, with participation from Ares Management Corporation.

This deal brings an opportunity to partially recapitalise SageSure’s long-term minority stakeholders, while bringing in experienced strategic and financial investors.

Amwins and Flexpoint Ford will each appoint a representative to the SageSure Board of Managers, the company explained, as it looks to continue its growth beyond the landmark $1 billion of inforce premium it has recently hit.

“By deploying capital efficiently throughout its ecosystem, SageSure’s strategy supports its carrier partners and producers by creating additional underwriting capacity in an otherwise challenging environment for catastrophe-exposed property risk,” the company said.

“SageSure is excited to include Amwins and Flexpoint Ford among our sophisticated capital partners,” explained Terrence McLean, CEO and co-founder of SageSure. “We’re grateful for their investment in our capital-efficient business model. Their support will strengthen our ability to protect more American Dreams in challenging markets.”

“Terry and the SageSure team have built a truly exceptional business,” added Scott Purviance, Chief Executive Officer of Amwins. “We are excited to partner with them and support their efforts in building capacity, expanding their distribution base, and continuing to enhance their industry-leading technology platform.”

“We are excited to partner with Terry and his talented team as they continue to build a capital efficient company with a superior approach to risk selection and a track record of strong underwriting results for their insurance and (re) insurance partners,” Dominic Hood, Managing Director of Flexpoint Ford said. “Our new partnership with SageSure and Amwins continues Flexpoint’s long history of partnering with growth-orientated platforms in the property and casualty insurance industry.”

In just the last two years, SageSure has secured more than $700 million in equity and debt funding to support its growth, counting top institutions such as Ares Management Corporation, Citizens Financial Group, and, most recently, Wintrust Financial Corporation among its backers, to which it now adds Amwins and Flexpoint Ford.

It’s also notable that SageSure has brought additional capital into its business from the insurance-linked securities (ILS) market as well, having now brought four Gateway catastrophe bonds to market to source efficient reinsurance capacity to back its underwriting partners.

The first SageSure linked catastrophe bond was a $150 million Gateway Re Ltd. (Series 2022-1) deal to cover its reciprocal exchange underwriters SureChoice and Elevate, which was followed in February 2023 with a $355 million Gateway Re Ltd. (Series 2023-1) named storm cat bond, that covered both the reciprocals as well.

SageSure then returned to the cat bond market in April with a $125 million Gateway Re II Ltd. (Series 2023-1) cat bond that provides its reinsurance to SafePort Insurance Company, SafeChoice Insurance Company, both carriers linked to SageSure as well.

SageSure is back in the cat bond market right at this time, seeking at least $75 million in additional multi-year catastrophe capacity through a Gateway Re Ltd. (Series 2023-2) cat bond for the SureChoice and Elevate reciprocal exchanges.