SageSure, a U.S. residential property management general underwriter operating in the catastrophe market, and Auros Reciprocal Insurance Exchange, a policyholder-owned property insurance company, have confirmed the completion of the $175 million Gateway Re Ltd. Series 2026-2 catastrophe bond offering.
The transaction further strengthens SageSure’s activities in the insurance-linked securities (ILS) market, following the recently completed $670 million Gateway Re 2026-1 transaction.
Combined, these issuances bring SageSure’s total outstanding cat bond notional amount to approximately $3 billion, placing the company among the top three cat bond originators in the world.
Final pricing for Gateway Re 2026-2 was below initial guidance for the Class A notes and within the previously specified range for the Class B notes. The results reflect continued investor participation in SageSure-backed programs and are consistent with the company’s efforts to expand protection against a broader range of secondary risks within its reinsurance structure.
“The success of this offering is a testament to the transparency and performance of our underwriting platform,” commented SageSure President and CEO Terrence McLean. “Achieving this level of execution allows us to maintain a competitive advantage while ensuring the long-term, multi-year capabilities needed to protect policyholders in dynamic coastal markets. We thank our investors for their continued confidence in our mission and outperformance.”
The transaction marks another step forward in Gateway Re’s program, which has provided multi-risk indemnity insurance in six major states for Auros and Interboro Insurance Company (collectively, the “Ceding Insurers”) from inception. The structure achieves significant efficiencies, especially considering secondary hazards such as wildfires and severe thunderstorms, which typically command higher pricing in the reinsurance and ILS markets.
“The capital markets response to this transaction confirms that investors value the diversity and technical rigor that Auros and SageSure bring,” added Travis Lewis, CEO of Auros Risk Management. “With this offering, we ensure stable, high-quality protection for our members through 2029.”
The offering provides three years of protection, beginning July 1, 2026, covering losses in Florida, Louisiana, Mississippi, New York, South Carolina and Texas. Swiss Re Capital Markets acted as the exclusive structuring agent and bookrunner for the transaction.
Jean-Louis Monnier, CEO of Swiss Re Capital Markets, said: “Swiss Re is pleased to support SageSure, Auros and Interboro in further diversifying their capital sources through the latest Gateway Re issuance.”
“The strong market response and favorable pricing reflect investor confidence in SageSure and Auros’ growth strategies and their established track record. By expanding risk coverage while achieving such efficient execution, SageSure and the ceding insurer benefit from the ILS market’s growing interest in well-structured multi-risk exposures.”
You can read all about this deal and hundreds of other cat bonds on Artemis’ extensive deal directory.
The post SageSure and Auros complete $175 million U.S. multi-risk cat bond issuance appeared first on ReinsuranceNe.ws.
