SageSure reduces pricing for $100m Gateway Re 2025-3 cat bond

SageSure is now targeting slightly reduced pricing for its latest catastrophe bond, with the target remaining to secure $100 million or more in U.S. named storm reinsurance, from the Gateway Re Ltd. (Series 2025-3) issuance, that will protect the Aurous and Elevate reciprocal exchanges, Artemis has learned.

SageSure returned to the catastrophe bond market towards the end of June with its latest Gateway Re cat bond, which will be the eleventh in the series.

The company is still aiming to secure $100 million or more in U.S. named storm reinsurance protection from the capital markets for the two reciprocal exchange underwriting entities.

While the target size remains unchanged, we understand, the price guidance has been slightly lowered as SageSure targets strong price execution for its latest cat bond deal.

Gateway Re Ltd. is still offering a $100 million single tranche of Class A Series-2025-3 notes to cat bond investors, designed to cover the two reciprocals against losses from named storms initially covering the U.S. states of Louisiana, Mississippi, South Carolina and Texas, on an indemnity, per-occurrence basis.

As we explained in our first article on this new catastrophe bond, the notes will only provide their protection across a single hurricane season, coming on-risk after issuance in July, and running through to mid-December 2025.

The $100 million of Class A Series 2025-3 notes that Gateway Re Ltd is set to issue have an initial attachment probability of 3.66%, and an initial expected loss of 1.83%.

As we’ve previously explained, the $100 million of Series 2025-3 Class A notes are structured as discounted zero-coupon notes.

The notes were originally being offered with price guidance in a range of 93% to 93.5% of par, which roughly equated to a spread-equivalent of between 6.5% and 7%.

We’re now told by sources that the price guidance has been updated to between 93.50% to 93.75% of par, which indicates a reduction to a rough spread equivalent of 6.25% to 6.5%.

This pricing development suggests that SageSure’s underwriting entities, Auros and Elevate, are on track to achieve another strong result in the catastrophe bond market.

At this time, before this issuance, SageSure related underwriting entities have $2.075 billion of cat bond backed reinsurance outstanding according to the Artemis catastrophe bond sponsor leaderboard.

As a reminder, you can read all about this new Gateway Re Ltd. (Series 2025-3) catastrophe bond and every other cat bond deal in the Artemis Deal Directory.