Coastal property managing general underwriter, SageSure, has hailed the structure of its latest catastrophe bond issuance, the $150 million Gateway Re Ltd. (Series 2025-2) transaction, with the company’s CEO expressing gratitude towards the insurance-linked securities (ILS) investor base for its continued confidence and support.
SageSure returned to the catastrophe bond market at the start of March with its latest Gateway Re cat bond deal, initially targeting a $125 million or greater tranche of Series 2025-2 Class A notes, which eventually upsized by 20% to provide the MGU with $150 million in named storm reinsurance protection, while the notes were finalised in the lower half of the initially offered range, for a spread of 7%.
Aurous and Elevate are the reciprocal exchange underwriting entities, and will benefit from protection against a series of qualifying named storm events across a three-year term in Louisiana, Mississippi, South Carolina, and Texas, with the ability to add more states at reset.
This latest deal is the eleventh in the Gateway Re series, and also comes right on the heels of SageSure closing its largest issuance yet, following the $520 million Gateway Re 2025-1 cat bond being settled, becoming the largest yet for underwriting entities owned by or linked to coastal managing general underwriter (MGU) SageSure.
It’s also important to note, that following the completion of this transaction, the SageSure-supported Gateway Re franchise has now managed to secure $2.225 billion in cumulative notional limit, as shown in our cat bond sponsor leaderboard.
This now makes SageSure one of the top five primary insurance carrier catastrophe bond sponsors in the market.
Terrence McLean, President and CEO of SageSure, commented: “SageSure is grateful for the ILS community’s continued confidence in this series that has enabled meaningful protection and growth for our carrier partners.”
Adding: “SageSure’s position as a leading cat bond sponsor emphasizes our commitment to our carrier partners’ stability—a multi-year, diversified reinsurance program ensures both carriers and policyholders are well protected.”
Ed Konar, President of Auros Risk Management, said: “Auros is delighted by the strong investor support for our mission to protect coastal property owners. This issuance marks a significant milestone in Auros’ partnership with SageSure, one that will drive our strategic expansion in catastrophe-exposed markets.”
Reinsurance giant Swiss Re’s Capital Markets unit served as the sole structuring agent and bookrunner for the issuance.
Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation, added: “We are proud to collaborate with SageSure and Auros to successfully bring the tenth Gateway Re catastrophe bond issuance to market.
“The upsized limit and strong execution demonstrate investor confidence in SageSure’s effective exposure management, regulatory and capital optimization through carrier management, and the performance of the Gateway Re series.”
As a reminder, you can read all about this new Gateway Re Ltd. (Series 2025-2) catastrophe bond and every other cat bond deal in the Artemis Deal Directory.
