SageSure, one of the largest managing general underwriters (MGU) specialising in catastrophe-exposed markets, and Anchor Re, a captive reinsurance vehicle, have successfully secured $50 million of third-party capital with a debut reinsurance sidecar transaction with Seawall Re.
This inagural sidecar transaction with Seawall Re, a newly formed Bermuda-based special purpose insurer (SPI), establishes an efficient new avenue for capital market investors to participate in SageSure’s profitable underwriting results, driven by catastrophe risk underwriting, claims, and portfolio management.
SageSure is a major sponsor of catastrophe bonds with its Gateway Re series of deals, protecting many of its carrier partners and underwriting entities.
Currently, the firm has 10 transactions comprised of 15 tranches of cat bond notes outstanding, amounting to almost $2.2 billion, as reported our insurance-linked securities (ILS) focused sister site, Artemis.
The MGU produces business for a diverse range of carrier partners that cede risk to Anchor Re. This approach results in an attractive and stable catastrophe risk profile already insulated by quota share and catastrophe excess of loss (XOL) agreements with Anchor Re.
“SageSure is excited to continue diversifying capacity solutions that support our growing underwriting operations in catastrophe-exposed markets,” said Terrence McLean, President and CEO of SageSure. “The sidecar provides extra protection for Anchor Re and our carrier partners while directly connecting third-party capital to a stable risk profile expected to generate positive returns. We are grateful for the strong investor support for this transaction.”
With a “losses occurring during” (LOD) quota share structure, the transaction provides retrocessional protection for Anchor Re for the 2025-2026 treaty year.
Four carrier partners of SageSure benefiting from this extra capacity include: SureChoice Underwriters Reciprocal Exchange (SURE), SafeChoice Insurance Company (SafeChoice), Auros Reciprocal Insurance Exchange (Auros), Elevate Reciprocal Exchange (Elevate).
“The inaugural Seawall Re sidecar transaction is a significant milestone in our partnership with SageSure,” said Travis Lewis, Director of Anchor Re. “SageSure’s diligent underwriting and portfolio management have resulted in an appealing risk profile we believe is difficult to replicate. We’re grateful for the investor trust in our growth and success.”
MMC Securities LLC’s GC Securities division served as the exclusive structuring and placement agent for this sidecar transaction.
Liam Martens, Managing Director of GC Securities, commented: “We’re proud to have supported SageSure and Anchor Re in the debut Seawall Re sidecar issuance. The strong execution signals that SageSure’s differentiated catastrophe risk underwriting and portfolio management approach resonates with investors.”
Find details of numerous reinsurance sidecar investments and transactions in Artemis’ directory of collateralized reinsurance sidecars transactions.
