Second cat bond issued this year by Gateway Re demonstrates SageSure and SURE’s diversified approach to securing growth capacity.
SageSure, a leading provider of catastrophe-exposed property insurance, and SureChoice Underwriters Reciprocal Exchange (“SURE”), a policyholder-owned insurer, today announced that SURE has closed a $100 million catastrophe bond to provide reinsurance for second and subsequent events. The catastrophe bond was upsized by 33 percent from the transaction’s initial $75 million target, with pricing more competitive than the initial guidance.
With this issuance, SageSure has helped secure $580 million total in Gateway Re issuances for its carrier partners this year. For SURE, the Gateway Re 2023-2 catastrophe bond marks its second return to the global insurance-linked securities (ILS) market in 2023, after closing the $355 million Gateway Re Series 2023-1 catastrophe bond in February. Both transactions demonstrate SageSure and SURE’s strategy to leverage alternative capital markets for optimal placements when traditional reinsurance markets tightened in capacity.
“We are excited to see the continued support for SURE’s reinsurance program from the ILS investor community,” said Ed Konar, president of SURE. “The second and subsequent event catastrophe bond provides a necessary layer of additional protection during the 2023 Atlantic hurricane season.”
Whereas the Gateway Re 2023-1 issuance provides multi-year capacity, the Gateway Re 2023-2 Class C notes cover $100 million of second and subsequent event losses in excess of the $70 million attachment level for named storms during a single hurricane season across Alabama, North and South Carolina, Louisiana, Mississippi, and Texas.
“Catastrophe bonds have become an important source of additional catastrophe risk capacity for SageSure and our carrier partners,” said Terrence McLean, CEO and co-founder of SageSure. “As we’ve seen traditional reinsurance markets harden, we are grateful for the ongoing ILS investor support that enables us to provide underwriting capacity in challenging markets.”
Swiss Re Capital Markets again partnered with SURE and SageSure for the transaction as the sole structuring agent and bookrunner.
“Swiss Re Capital Markets is proud to have led the placement of SURE and SageSure’s innovative second and subsequent event catastrophe bond solution, the third issuance this year by the Gateway Re franchise,” said Jean-Louis Monnier, Global Head of ILS at Swiss Re. “The success of the placement demonstrates that alternative capital can be an efficient source of reinstatement capacity and underlines the investor confidence in SURE, SageSure, and the Gateway Re franchise.”
About SURE
SURE is the member-owned insurance company for reliable coastal property protection. Founded in 2021 and rated A, Exceptional, by Demotech, Inc., SURE is managed by a team of experienced and passionate insurance leaders who believe in building a safer world, one coastal property at a time. With more than 150,000 policyholders and more than $400 million of premium to date, 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. 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 400,000 policyholders, and has more than $1 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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Contacts
Walker Sands
sagesure@walkersands.com
