The amount reflects a 20% increase from the original $50 million target and the move marks the eighth transaction in the Gateway Re series, bringing the total SageSure-supported risk capital for underwriting partners to $1.2 billion in just over two years.
Similar to the Gateway Re 2023-3 catastrophe bond issued last year, the bond uses a Property Claim Services (PCS) county-weighted catastrophe loss reporting trigger. The feature, which is unique to the franchise, covers multiple states. However, unlike the previous three-year coverage, the new issuance offers retrocessional reinsurance protection exclusively for the current hurricane season through the end of 2024.
The bond names Anchor Re, SURE, and Elevate Reciprocal Exchange (Elevate) as cedents, providing coverage against qualifying named storm events in Alabama, North and South Carolina, Louisiana, Mississippi, Texas, Virginia, and New York. This issuance is SURE’s third successful transaction in the global insurance-linked securities (ILS) market this year, following the recent $130 million Gateway Re Series 2024-2 catastrophe bond.
Swiss Re Capital Markets served as the sole structuring agent and bookrunner for this issuance.
Travis Lewis, Director of Anchor Re, said of the move: “The structure of this catastrophe bond provides essential protection if more than one hurricane impacts our portfolio this hurricane season. 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 also commented, saying: “SageSure continues to find the ILS market to be a sophisticated and efficient source of risk capital to support our underwriting partners. We are grateful for the confidence in our programs we’ve seen over the last two years.”
Jean-Louis Monnier, CEO of Swiss Re Capital Markets concluded: “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.”
He added: “The 2024 transaction will provide valuable sideways coverage through county-weighted industry loss indices for Anchor Re, as well as SURE and Elevate.”
