SageSure and Auros Secure $100 Million Catastrophe Bond, Strengthening Market Position
SageSure and Auros have successfully closed a $100 million catastrophe bond, marking a significant milestone in their reinsurance strategy and investor confidence.
SageSure, alongside its carrier partners Auros Reciprocal Insurance Exchange and Elevate Reciprocal Exchange, has announced the successful closure of the Gateway Re Series 2025-3 catastrophe bond at $100 million. This achievement not only underscores SageSure's growing influence in the global catastrophe bond market but also highlights the efficiency of the transaction, completed in nearly half the typical placement timeline. With this issuance, the cumulative notional limit of the SageSure-supported Gateway Re series exceeds $2.1 billion, positioning SageSure as the seventh top catastrophe bond sponsor worldwide.
The latest issuance follows Auros' inaugural catastrophe bond deal in April and was met with strong investor confidence, as evidenced by lowered and narrowed price guidance. Terrence McLean, President and CEO of SageSure, emphasized the strategic importance of insurance-linked securities (ILS) markets in their reinsurance programs, acknowledging investor support that enhances protection against peak perils and increases capacity in catastrophe-exposed states.
The Gateway Re 2025-3 Class A notes will offer protection across a single hurricane season for cedants Auros and Elevate in Louisiana, Mississippi, South Carolina, and Texas. Travis Lewis, CEO of Auros Risk Management, expressed gratitude for the ILS market's confidence, which supports the responsible growth of their programs. Similarly, Ed Konar, President of Elevate Risk Management, noted the positive investor response to the catastrophe bond placement, highlighting the role of capital markets in reinforcing their reinsurance program's resilience.
Swiss Re Capital Markets served as the sole structuring agent and bookrunner for this transaction, continuing its partnership with SageSure, Auros, and Elevate. Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation, praised the overwhelming investor support for the transaction, attributing it to trust in SageSure's underwriting, claims, and risk management approach.