SageSure grateful for support of ILS community as $60m Gateway 2024-4 cat bond closes

Coastal property managing general underwriter, SageSure, has hailed the structure of its latest catastrophe bond issuance, the $60 million county-weighted Gateway Re Ltd. (Series 2024-4) transaction, and expressed gratitude to the insurance-linked securities (ILS) investor base for its continued support.

SageSure returned to the catastrophe bond market in early June, initially targeting a $50 million or greater tranche of Series 2024-4 Class A notes, which eventually upsized by 20% to provide the MGU’s carrier entities with $60 million of county-weighted, index-trigger, collateralized retrocessional reinsurance.

Anchor Re, SURE, and Elevate are the cedants and will benefit from reinsurance protection against a series of qualifying named storm events in Alabama, North and South Carolina, Louisiana, Mississippi, Texas, Virginia, and New York.

This latest deal is the eighth in the Gateway Re series, and takes the total of SageSure-supported risk capital for underwriting partners to $1.2 billion in just over two years.

Travis Lewis, Director of Anchor Re, commented, “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.”

The Gateway Re Ltd. (Series 2024-4) issuance is the second from SageSure to leverage a PCS county-weighted catastrophe loss reporting trigger, after the $50 million Gateway Re Ltd. (Series 2023-3) issuance, although last year’s deal only covered SageSure’s captive reinsurance vehicle Anchor Re.

Another difference with the most recent issuance is that it’s designed to provide retrocessional reinsurance protection solely across the current hurricane season through the end of 2024, whereas the 2023 deal provided three-year county-weighted wind cover.

Terrence McLean, President and CEO of SageSure, said, “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.”

Reinsurance giant Swiss Re’s Capital Markets unit served as the sole structuring agent and bookrunner for the issuance.

“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,” said Jean-Louis Monnier, CEO of Swiss Re Capital Markets.

Gateway Re Ltd. (Series 2024-4) is the company’s third successful cat bond transaction this year, after the $130 million Gateway Re Ltd. (Series 2024-2), and the $250 million Gateway Re Ltd. (Series 2024-1).

You can read all about this new Gateway Re Ltd. (Series 2024-4) catastrophe bond and every other cat bond deal in the Artemis Deal Directory.