Coastal property managing common underwriter, SageSure, has hailed the construction of its newest disaster bond issuance, the $60 million county-weighted Gateway Re Ltd. (Series 2024-4) transaction, and expressed gratitude to the insurance-linked securities (ILS) investor base for its continued help.
SageSure returned to the disaster bond market in early June, initially focusing on a $50 million or larger tranche of Sequence 2024-4 Class A notes, which finally upsized by 20% to supply the MGU’s service entities with $60 million of county-weighted, index-trigger, collateralized retrocessional reinsurance.
Anchor Re, SURE, and Elevate are the cedants and can profit from reinsurance safety in opposition to a sequence of qualifying named storm occasions in Alabama, North and South Carolina, Louisiana, Mississippi, Texas, Virginia, and New York.
This newest deal is the eighth within the Gateway Re sequence, and takes the whole of SageSure-supported threat capital for underwriting companions to $1.2 billion in simply over two years.
Travis Lewis, Director of Anchor Re, commented, “The construction of this disaster bond offers important safety if multiple hurricane impacts our portfolio this hurricane season. We’re grateful to the ILS investor group for its continued help, which permits Anchor Re to effectively deploy capital and capability for SageSure’s underwriting companions’ reinsurance applications.”
The Gateway Re Ltd. (Sequence 2024-4) issuance is the second from SageSure to leverage a PCS county-weighted disaster loss reporting set off, after the $50 million Gateway Re Ltd. (Series 2023-3) issuance, though final yr’s deal solely coated SageSure’s captive reinsurance automobile Anchor Re.
One other distinction with the newest issuance is that it’s designed to supply retrocessional reinsurance safety solely throughout the present hurricane season by way of the top of 2024, whereas the 2023 deal offered three-year county-weighted wind cowl.
Terrence McLean, President and CEO of SageSure, mentioned, “SageSure continues to seek out the ILS market to be a complicated and environment friendly supply of threat capital to help our underwriting companions. We’re grateful for the arrogance in our applications we’ve seen during the last two years.”
Reinsurance large Swiss Re’s Capital Markets unit served as the only structuring agent and bookrunner for the issuance.
“Swiss Re Capital Markets is proud to have secured this second and subsequent occasion cowl for SageSure. This eighth profitable issuance beneath the Gateway program is a outstanding feat contemplating that SageSure has now secured $1.2 billion of cumulative notional restrict in disaster bonds in simply over 2 years. The 2024 transaction will present beneficial sideways protection by way of county-weighted business loss indices for Anchor Re, in addition to SURE and Elevate,” mentioned Jean-Louis Monnier, CEO of Swiss Re Capital Markets.
Gateway Re Ltd. (Series 2024-4) is the corporate’s third profitable cat bond transaction this yr, after the $130 million Gateway Re Ltd. (Series 2024-2), and the $250 million Gateway Re Ltd. (Series 2024-1).
You may learn all about this new Gateway Re Ltd. (Series 2024-4) disaster bond and each different cat bond deal within the Artemis Deal Directory.
