Artemis has learned that SageSure, the coastal property managing general underwriter, has now successfully priced its latest catastrophe bond, securing the 20% upsized $150 million in named storm reinsurance sought from the Gateway Re Ltd. (Series 2025-2) issuance that can protect the Aurous and Elevate reciprocal exchanges.
Similtaneously securing the upsized amount of reinsurance, the notes have now been priced to pay cat bond investors an expansion within the lower half of the initially offered range.
SageSure returned to the catastrophe bond market firstly of March with its latest Gateway Re cat bond deal, which can be its eleventh within the series.
Initially, SageSure was searching for $125 million in named storm reinsurance protection from the capital markets for the 2 reciprocal exchange underwriting entities.
But, in our first update on this deal, we revealed that SageSure’s size goal for this cat bond issuance had increased, while the value guidance had narrowed, but still remained inside the initial range that had been originally offered.
Now, we’ve learned that the increased size goal was achieved on the low-end of the updated guidance, with this Gateway Re 2025-2 catastrophe bond now set to offer SageSure $150 million in named storm reinsurance protection for the 2 reciprocal exchange underwriting entities.
As we previously explained, up to now the Elevate Reciprocal Exchange had purchased its own reinsurance tower in recent times, but for the upcoming mid-year renewals Elevate and the Auros Reciprocal Insurance Exchange could have a combined reinsurance tower, so this catastrophe bond cover will grow to be a component of it.
The Gateway Re 2025-2 Class A cat bond notes will provide US named storm reinsurance, initially for the states of Louisiana, Mississippi, South Carolina and Texas, to the SageSure reciprocals on an indemnity trigger and per-occurrence basis across a 3 yr term, from July 2025 to the top of June 2028.
The $150 million in Series 2025-2 Class A notes that Gateway Re will now issue include an initial expected lack of 1.86%.
The notes were first offered to cat bond investors with price guidance in a variety from 6.75% to 7.5%, but that was later updated to a narrower 7% to 7.25%, and we’re now told the pricing has been finalised on the low-end for an expansion of seven%, so inside the lower half of the initially offered range.
That is one other good result for SageSure, as the corporate has benefited from the strong price execution within the cat bond market to secure a meaningful $150 million in named storm reinsurance protection, at attractive pricing.
This also comes right on the heels of SageSure closing its largest issuance yet, following the $520 million Gateway Re 2025-1 cat bond being settled, becoming the biggest yet for underwriting entities owned by or linked to coastal managing general underwriter (MGU) SageSure.
SageSure-linked underwriting entities profit from greater than $2 billion of catastrophe bond protection, as shown in our cat bond sponsor leaderboard. Once this recent cat bond settles, in the primary week of April, SageSure will move up that list and into the top-5 of sponsors.
You possibly can read all about this recent Gateway Re Ltd. (Series 2025-2) catastrophe bond and each other cat bond deal within the Artemis Deal Directory.