SageSure, a managing general underwriter (MGU) focused on catastrophe-exposed markets, and Auros Reciprocal Insurance Exchange, a policyholder-owned insurer, have closed their Gateway Re Series 2025-2 catastrophe bond, securing $150 million in coverage.
With this latest transaction, the Gateway Re franchise, supported by SageSure, has secured over $2 billion in cumulative notional limit, positioning the MGU among the top five primary insurance carriers sponsoring catastrophe bonds globally, as of the date of this publication.
The series will provide multi-year named storm reinsurance protection for both Auros, a first-time cedent entering the insurance-linked securities (ILS) market, and Elevate Reciprocal Exchange.
At 20% upsize from its initial $125 million target, the tenth issuance in the Gateway Re series achieved a price execution in the lower half of its initial target range, another strong result for the franchise, SageSure stated.
Terrence McLean, President and CEO of SageSure, said: “SageSure is grateful for the ILS community’s continued confidence in this series that has enabled meaningful protection and growth for our carrier partners.
“SageSure’s position as a leading cat bond sponsor emphasises our commitment to our carrier partners’ stability – a multi-year, diversified reinsurance program ensures both carriers and policyholders are well protected.”
The Gateway Re 2025-2 Class A notes will provide protection to Louisiana, Mississippi, South Carolina, and Texas from named storm protection across a three-year term, and will be able to add more states at reset.
“Auros is delighted by the strong investor support for our mission to protect coastal property owners,” said Ed Konar, President of Auros Risk Management. “This issuance marks a significant milestone in Auros’ partnership with SageSure, one that will drive our strategic expansion in catastrophe-exposed markets.”
The transaction was structured and booked solely by Swiss Re Capital Markets, as with earlier Gateway Re issuances.
“We are proud to collaborate with SageSure and Auros to successfully bring the tenth Gateway Re catastrophe bond issuance to market,” said Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation.
He added: “The upsized limit and strong execution demonstrate investor confidence in SageSure’s effective exposure management, regulatory and capital optimisation through carrier management, and the performance of the Gateway Re series.”
You can read all about this cat bond and hundreds of other transactions on our insurance-linked securities (ILS) focused sister publication, Artemis’ extensive Deal Directory.
