SageSure, Anchor Re, and SURE close $60m catastrophe bond

TMI Newsdesk
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SageSure, Anchor Re, and SureChoice Underwriters Reciprocal Exchange (SURE) have announced the closing of the Gateway Re 2024-4 catastrophe bond at $60 million—20% higher than the original $50 million target.

This marks the eighth transaction in the Gateway Re series, bringing SageSure-supported risk capital for underwriting partners to $1.2 billion in just over two years.

Similar to the Gateway Re 2023-3 bond issued a year ago, this bond also uses a Property Claim Services (PCS) county-weighted catastrophe loss trigger, a unique feature used exclusively in this franchise for multi-state coverage. However, unlike the previous three-year county-weighted wind cover bond, this new bond provides retrocessional reinsurance protection specifically for the current hurricane season through the end of 2024.

The cedents named in this transaction are Anchor Re, SURE, and Elevate Reciprocal Exchange (Elevate). The coverage aims to safeguard against a series of qualifying named storm events in Alabama, North and South Carolina, Louisiana, Mississippi, Texas, Virginia, and New York.

You can read more about this Gateway Re Ltd. (Series 2024-4) catastrophe bond, and all others in the deal directory of our sister publication, Artemis.

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Travis Lewis, Director of Anchor Re, emphasised, “The structure of this catastrophe bond provides essential protection if more than one hurricane impacts our portfolio this hurricane season.”

Lewis added, “We’re grateful to the ILS investor community for its continued support, which enables Anchor Re to efficiently deploy capital and capacity for SageSure’s underwriting partners’ reinsurance programs.”

Terrence McLean, President and CEO of SageSure, remarked, “SageSure continues to find the ILS market to be a sophisticated and efficient source of risk capital to support our underwriting partners.”

He continued, “We are grateful for the confidence in our programs we’ve seen over the last two years.”

This issuance marks SURE’s third successful transaction through the global insurance-linked securities (ILS) market this year, following the recently closed $130 million Gateway Re Series 2024-2 catastrophe bond.

Jean-Louis Monnier, CEO of Swiss Re Capital Markets, highlighted Swiss Re Capital Markets’ role as the sole structuring agent and bookrunner for the issuance, stating, “Swiss Re Capital Markets is proud to have secured this second and subsequent event cover for SageSure.”

“This eighth successful issuance under the Gateway program is a remarkable feat considering that SageSure has now secured $1.2 billion of cumulative notional limit in catastrophe bonds in just over 2 years. The 2024 transaction will provide valuable sideways coverage through county-weighted industry loss indices for Anchor Re, as well as SURE and Elevate,” Monnier concluded.

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