SageSure closes second cat bond for $130m

SageSure has issued its second catastrophe bond of the year, securing its target of $130 million in an issuance covering second and subsequent events.

SageSure, in conjunction with SureChoice Underwriters Reciprocal Exchange, a policyholder-owned reciprocal exchange, announced the close of the Gateway Re 2024-2 second and subsequent event catastrophe bond at $130 million, with pricing 75 bps tighter than the mid-point of the initial price guidance.

The cat bonds listed on the Bermuda Stock Exchange last week and terminate in December, 2024.

With this latest transaction, SageSure-supported catastrophe bonds issued by Gateway Re represent $1.16 billion in risk capital, the company said.

"The issuance marks SURE’s second successful visit to the global insurance-linked securities (ILS) market this year, following the recently closed $250 million Gateway Re Series 2024-1 catastrophe bond," the company said in a statement.

"The 2024-2 notes provide second and subsequent event loss protection for both SURE and SageSure’s other affiliated reciprocal exchange Elevate through the end of the 2024 Atlantic hurricane season."

“We are grateful for the continued support we see from capital markets,” said Ed Konar, president of SURE. “This issuance provides an additional layer of named-storm protection during this year’s hurricane season, enabling SURE to protect more property owners in catastrophe-exposed regions.”

After announcing a notional range of $100 to $130 million, SURE was able to secure its full target limit of $130 million, signalling strong ILS support for SageSure and its underwriting partners.

“SageSure is grateful for the ILS community’s confidence in SURE and the Gateway Re franchise,” said Terrence McLean, president and CEO of SageSure. “Catastrophe bonds have been an integral part of our underwriting partners’ reinsurance programs since 2022. The continued support from ILS investors enables growth in markets that need our solutions most.”

Swiss Re Capital Markets again served as the sole structuring agent and bookrunner for the issuance.

“Swiss Re is excited to once again partner with SURE and SageSure on this successful second-event catastrophe bond, a risk profile rarely seen in the ILS market,” said Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation. “Structured as an efficient zero-coupon note, the Gateway Re issuance achieved competitive pricing and a remarkably strong execution. This transaction is a testament to the continued investor support for SURE, SageSure, and the Gateway Re franchise.

"It also demonstrates SURE and SageSure's agility in securing different forms of alternative capital capacity."

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