SageSure has raised the target size for its latest catastrophe bond market deal, with now up to $150 million of named storm reinsurance sought from the Gateway Re Ltd. (Series 2025-2) issuance that will protect the Aurous and Elevate reciprocal exchanges, Artemis has learned.
SageSure returned to market at the start of March with its latest Gateway Re cat bond deal, which will be eleventh in the series.Initially, the target for this Gateway Re 2025-2 cat bond was to secure $125 million in named storm reinsurance protection from the capital markets for the two reciprocal exchange underwriting entities.
Now, we’re told that the target has been raised, with up to $150 million of reinsurance being sought, while at the same time the price guidance has been narrowed within the initial range that had been offered.
As we explained in our first article on this new catastrophe bond, in the past the Elevate Reciprocal Exchange had purchased its own reinsurance tower in recent years, but for the upcoming mid-year renewals Elevate and the Auros Reciprocal Insurance Exchange will have a combined reinsurance tower, so this catastrophe bond cover will become a component of it.
The Gateway Re 2025-2 Class A cat bond notes will provide US named storm reinsurance, initially for the states of Louisiana, Mississippi, South Carolina and Texas, to the SageSure reciprocals on an indemnity trigger and per-occurrence basis across a three year term, from July 2025 to the end of June 2028.
The Series 2025-2 Class A notes were initially marketed as a $125 million offering, but this has now been lifted to up to $150 million we understand.
The notes come with an initial expected loss of 1.86% and were at first marketed to cat bond investors with price guidance in a range from 6.75% to 7.5%.
We’re now told that the price guidance has been updated, to a narrower 7% to 7.25%, so within the initial offered range.
It’s also worth mentioning that this cat bond is now expected to settle in early April, so taking it into the second-quarter of the year for reporting purposes on cat bond market activity.
SageSure-linked underwriting entities benefit from more than $2 billion of catastrophe bond protection, as shown in our cat bond sponsor leaderboard.
You can read all about this new Gateway Re Ltd. (Series 2025-2) catastrophe bond and every other cat bond deal in the Artemis Deal Directory.
