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 assist.
SageSure returned to the disaster bond market in early June, initially focusing on a $50 million or better tranche of Collection 2024-4 Class A notes, which finally upsized by 20% to offer the MGU’s provider 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 towards a collection 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 collection, and takes the overall 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 a couple of hurricane impacts our portfolio this hurricane season. We’re grateful to the ILS investor group for its continued assist, which permits Anchor Re to effectively deploy capital and capability for SageSure’s underwriting companions’ reinsurance packages.”
The Gateway Re Ltd. (Collection 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 latest issuance is that it’s designed to offer retrocessional reinsurance safety solely throughout the present hurricane season by the tip of 2024, whereas the 2023 deal supplied three-year county-weighted wind cowl.
Terrence McLean, President and CEO of SageSure, mentioned, “SageSure continues to search out the ILS market to be a complicated and environment friendly supply of threat capital to assist our underwriting companions. We’re grateful for the boldness in our packages 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 underneath 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 worthwhile sideways protection by 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 possibly can learn all about this new Gateway Re Ltd. (Series 2024-4) disaster bond and each different cat bond deal within the Artemis Deal Directory.
