SageSure and SURE Close $250 Million Catastrophe Bond at a 67% Upsize
SageSure, one of the largest managing general underwriters focused on catastrophe-exposed markets, and SureChoice Underwriters Reciprocal Exchange ("SURE"), a policyholder-owned reciprocal exchange, today announced the close of the Gateway Re 2024-1 catastrophe bond at $250 million, a 67 percent upsize from the midpoint of its initial $100-$200 million target range.
With pricing of Class AA and Class A notes falling 20 percent and 17 percent below the initial mid-point guidance respectively, the execution for the Gateway Re Series 2024-1 catastrophe bond was particularly strong, signaling continued support for SageSure and its underwriting partners from the global insurance-linked securities (ILS) market.
"Since 2022, capital markets have played a key role in SURE's reinsurance program," said Ed Konar, President of SURE. "The latest Gateway Re catastrophe bond issuance further bolsters SURE's multi-year named storm reinsurance protection, and we look forward to the measured growth it will support."
The Gateway Re 2024-1 issuance will provide named storm reinsurance protection for both SURE and SageSure's other affiliated reciprocal exchange Elevate in Alabama, North and South Carolina, Louisiana, Mississippi, and Texas with the optionality to add New York and/or Virginia for the multi-year Class AA tranche.
"SageSure is proud to support our underwriting partners in securing diversified, multi-year reinsurance capacity," said Terrence McLean, CEO of SageSure. "This transaction brings total catastrophe bond issuances across our underwriting partners to more than $1 billion in only 24 months. We are grateful to the ILS investor community for their continued support that enables us to serve markets where our solutions make a significant impact."
Building on last year's partnership, Swiss Re Capital Markets acted as the sole structuring agent and bookrunner for the Gateway Re 2024-1 issuance.
"We are excited to again advise SURE and SageSure on this successful issuance by Gateway Re," said Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation. "Broad investor demand and competitive pricing of the placement illustrate confidence in SURE, SageSure, and are a testament to the strength of the Gateway Re franchise."
About SURE
SURE is the member-owned insurance company for reliable coastal property protection. Managed by a team of experienced and passionate insurance leaders who believe in building a safer world one coastal property at a time, SURE has grown rapidly to meet the needs of challenging markets while prudently managing exposure. As the first Texas-domiciled reciprocal since 2004, SURE is customer-focused by design and offers homeowners, dwelling fire, flood, and commercial coverage through an exclusive partnership with SageSure. SURE is rated A, Exceptional, by Demotech, Inc., has more than 240,000 policyholders and more than $725 million of inforce premium to date, and is currently available in Alabama, California, Florida, Louisiana, Mississippi, North Carolina, South Carolina, and Texas. To learn more, visit sureins.com.
About SageSure
SageSure is the managing general underwriter specializing in coastal residential and commercial property insurance. SageSure offers more than 50 competitively priced insurance products in 14 coastal states on behalf of its carrier partners, serves more than 550,000 policyholders, and has more than $1.6 billion of inforce premium. Since its launch in 2009, SageSure has been pioneering property insurance through its market-leading online quoting and binding platform and its sophisticated risk modeling and scoring technology. For more information, visit sagesure.com.
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