SageSure, a US residential property managing general underwriter operating in catastrophe-exposed markets, and Auros Reciprocal Insurance Exchange, a policyholder-owned property insurer, have confirmed the completion of the $175 million Gateway Re Ltd. Series 2026-2 catastrophe bond issuance.
The transaction adds to SageSure’s activity in the insurance-linked securities (ILS) market, with the deal following the recently completed $670 million Gateway Re 2026-1 transaction.
Combined, these issuances bring SageSure’s total outstanding catastrophe bond notional to around $3 billion, positioning the company among the three largest catastrophe bond sponsors worldwide.
Final pricing for Gateway Re 2026-2 was set below the initial guidance for the Class A Notes and within the previously indicated range for the Class B Notes. The outcome reflects continued participation from investors in the SageSure-supported programme and aligns with the company’s efforts to extend protection for a broader set of secondary perils within its reinsurance structure.
“The success of this issuance is a testament to the transparency and performance of our underwriting platform,” commented Terrence McLean, President and CEO of SageSure. “Achieving this level of execution allows us to maintain a competitive edge while securing the long-term, multi-year capacity necessary to protect policyholders in dynamic coastal markets. We are grateful for the continued investor confidence in both our mission and our outperformance.”
The transaction marks a further step in the Gateway Re programme, providing multi-peril indemnity coverage for Auros and Interboro Insurance Company (collectively, the “ceding insurer”) across six principal states at inception. The structure achieved notable efficiency, particularly given the inclusion of secondary perils such as wildfires and severe thunderstorms, which usually carry higher pricing in the reinsurance and ILS markets.
“The reception from the capital markets for this transaction confirms that investors value the diversification and technical rigor Auros and SageSure bring to the table,” added Travis Lewis, CEO of Auros Risk Management. “With this issuance, we ensure stable, high-quality protection for our members through 2029.”
The issuance provides three years of protection, beginning on 1 July 2026, and covers losses across Florida, Louisiana, Mississippi, New York, South Carolina and Texas. Swiss Re Capital Markets Corporation served as the sole structuring agent and bookrunner for the transaction.
“Swiss Re is pleased to have supported SageSure, Auros, and Interboro in further diversifying their capital sources through this latest Gateway Re issuance,” said Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation.
“The strong market reception and favourable pricing reflect investors’ confidence in SageSure and Auros’ growth strategy and their established track record. By expanding the peril set while achieving such efficient execution, SageSure and the ceding insurer have benefited from the growing depth of the ILS market’s appetite for well-structured, multi-peril risk.”
You can read all about this transaction and hundreds of other catastrophe bonds on Artemis’ extensive Deal Directory.
