SageSure’s successful sponsorship of its latest catastrophe bond, the $175 million Gateway Re Ltd. (Series 2026-2) issuance, is a testament to the transparency and performance of the managing general underwriters (MGUs) underwriting platform, President and CEO Terrence McLean said today.
SageSure appeared to prioritise price over size with its latest catastrophe bond, as the company successfully managed to lower and narrow the price guidance for the notes that were on offer.
“With pricing finalized below initial guidance for the Class A Notes and within initial guidance for the Class B Notes, the Gateway Re 2026-2 transaction achieved highly favourable execution, signaling continued investor confidence in the SageSure-supported franchise. The strong pricing execution reflects the maturing relationship between SageSure and the ILS community, as the company moves to cover a broader array of secondary perils across the reinsurance tower,” SageSure explained.
This new cat bond issuance provides the ceding entities with multi-year reinsurance against losses from the U.S. perils of named storm, earthquake, severe thunderstorm, winter storm and wildfire, initially across the states of Florida, Louisiana, Mississippi, New York, South Carolina and Texas.
“The deal achieved significant efficiency—especially notable with the inclusion of secondary perils like wildfires and severe thunderstorms, which typically command higher premiums in the reinsurance/ILS markets,” SageSure added.
Terrence McLean, President and CEO of SageSure, commented: “The success of this issuance is a testament to the transparency and performance of our underwriting platform.”
He continued: “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.”
Travis Lewis, CEO of Auros Risk Management, said: “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. With this issuance, we ensure stable, high-quality protection for our members through 2029.”
Swiss Re Capital Markets Corporation acted as the sole structuring agent and bookrunner for the transaction.
Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation, added: “Swiss Re is pleased to have supported SageSure, Auros, and Interboro in further diversifying their capital sources through this latest Gateway Re issuance.
“The strong market reception and favorable 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.”
Earlier in February, SageSure also priced and secured the $670 million Gateway Re Ltd. (Series 2026-1) issuance, which marked the largest cat bond in the Gateway Re series of deals yet.
That moved the company up to third place in the Artemis catastrophe bond sponsor leaderboard, with just over $3.1 billion in risk capital outstanding across cat bonds for related underwriting entities.
Now, after a maturity rolled-off risk and now adding this latest Gateway, SageSure is in fourth position in our leaderboard, with just under $3 billion of catastrophe bond risk capital outstanding at this time.
As a reminder, you can read all about this new Gateway Re Ltd. (Series 2026-2) catastrophe bond and every other cat bond deal in the Artemis Deal Directory.
