SageSure and SURE close $130m second and subsequent event cat bond

SageSure, an MGU focused on catastrophe-exposed markets, and SureChoice Underwriters Reciprocal Exchange (SURE) have closed the Gateway Re 2024-2 second and subsequent event catastrophe bond at $130 million.

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 new 2024-2 notes reportedly 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.

According to SageSure, with this latest transaction, its supported catastrophe bonds issued by Gateway Re represent $1.16 billion in risk capital.

Terrence McLean, President and CEO of SageSure, commented, “SageSure is grateful for the ILS community’s confidence in SURE and the Gateway Re franchise. 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.”

Ed Konar, President of SURE, added, “We are grateful for the continued support we see from capital markets. 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.”

Swiss Re Capital Markets again served as the sole structuring agent and bookrunner for the issuance. Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation, said, “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.

“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.”

Read more about this Gateway Re Ltd. (Series 2024-2) catastrophe bond, and all others in the Deal Directory of our sister publication, Artemis.

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