SageSure, the fast-growing catastrophe-exposed property specialist MGU, is back with another catastrophe bond that targets multi-peril reinsurance protection for the Auros Reciprocal Insurance Exchange and Interboro Insurance Company, with the Gateway Re Ltd. (Series 2026-2) issuance targeting $175 million of coverage, Artemis understands.
The latest Gateway Re Ltd. Series 2026-2 catastrophe bond transaction is set to be the thirteenth in the Gateway Re cat bond series, all of which provide capital markets backed reinsurance to protect a range of underwriting entities owned by or linked to SageSure.
This new Gateway Re Series 2026-2 catastrophe bond launches with an initial target to secure at least $175 million of multi-peril reinsurance protection to protect the Auros Reciprocal Insurance Exchange and Interboro Insurance Company, both entities that sit beneath Slaine Insurance Holdings, LLC.
It will be the second in the Gateway Re series to target reinsurance protection for multiple perils, as the first eleven in the series were named storm only deals.
In this case, the Gateway Re Ltd. Bermuda domiciled special purpose insurer (SPI) is offering two classes of Series 2026-2 notes to investors, with the proceeds of their sale set to be used to collateralize reinsurance agreements with the ceding entities.
As said, the initial ceding entities are the Auros Reciprocal Insurance Exchange and Interboro Insurance Company, both of which have featured in cat bonds before, Auros in two previous Gateway Re deals and Interboro in older transactions when it was owned by United Property & Casualty Insurance Company.
This new deal will see the notes issued providing indemnity and per-occurrence based reinsurance to the ceding entities over a three-year term from July 1st 2026, we understand.
The notes will initially provide the ceding entities with multi-year reinsurance against losses from the U.S. perils of named storm, earthquake, severe thunderstorm, winter storm and wildfire, initially across the states of Florida, Louisiana, Mississippi, New York, South Carolina and Texas.
A $75 million tranche of Class A notes would attach their coverage at $235 million of losses and exhaust it at $535 million, giving them an initial attachment probability of 3.83%, an initial base expected loss of 1.99% and they are being offered to investors with price guidance for a spread of between 6.75% and 7.5%, we are told.
A $100 million tranche of Class B notes are riskier and would attach their coverage at $135 million of losses and exhaust it at $235 million, so sitting beneath the Class A’s, giving them an initial attachment probability of 7.58%, an initial base expected loss of 5.29% and they are being offered to investors with price guidance for a spread of between 11.75% and 12.75%, sources said.
With this second Gateway Re catastrophe bond of 2026 coming to market so soon after SageSure’s first of the year, it further demonstrates the MGU’s appetite to facilitate access to efficient, multi-year, capital market investor backed reinsurance capacity to support its growing portfolio of underwriting companies and partnerships.
You can read all about this new Gateway Re Ltd. (Series 2026-2) catastrophe bond and every other cat bond deal in the Artemis Deal Directory.
