SageSure has now secured its latest catastrophe bond, pricing the transaction to provide it with $670 million of broad multi-peril reinsurance which makes the new Gateway Re Ltd. (Series 2026-1) issuance the largest in the Gateway series of deals so far, Artemis has learned.
Then, in our first update on the transaction, the size target was adjusted slightly to between $645 million and $690 million, while the price guidance remained the same for each of the five classes of notes being offered.
Now, we’re told that SageSure has successfully priced the notes for this Gateway Re 2026-1 catastrophe bond, to provide it with $670 million of reinsurance limit, the largest in the series.
As we’ve noted before, this is the broadest offering in the Gateway Re series of cat bonds so far, now securing multi-peril cover (previously they were all named storm focused) and regional protection across a wider range of states for SageSure, as the company looks to continue to deeply integrate capital markets investor sourced limit via cat bonds within its reinsurance towers.
Within the Gateway Re Ltd. catastrophe bond series , this new Series 2026-1 issuance becomes the twelfth successful offering since May 2022.
Now priced, this Gateway Re 2026-1 cat bond will provide SureChoice Underwriters Reciprocal Exchange, Elevate Reciprocal Exchange and SafeChoice Insurance Company with a $670 million source of broad multi-peril and multi-regional US reinsurance protection, on an indemnity trigger basis over a three-year term from July 1st 2026.
The cat bond will provide reinsurance to protect the SageSure underwriting entities against certain losses from named storms, earthquakes, severe thunderstorms, winter storms and wildfires across parts of the United States, but with regional and peril differences to each tranche of Series 2026-1 notes that Gateway Re Ltd. is offering.
In pricing terms, all five tranches have now been finalised with spreads within their initial guidance ranges, but with different outcomes depending on the risk layers involved, we are told.
What was originally a $200 million tranche of Class AAAA notes have been priced at $160 million in size, we understand. They are designed to provide indemnity, occurrence coverage for named storm losses in the states of Alabama, Florida, Louisiana, Mississippi, New York, North Carolina, South Carolina, and Texas. These notes come with an initial expected loss of 0.57% and they were offered with price guidance for a risk interest spread of between 3.5% and 4%. The final pricing was at 3.5% we are told, so at the low-end of guidance.
What was a $135 million tranche of Class AAA-1 notes were finalised at $130 million in size. These notes are also designed to provide indemnity, occurrence coverage against named storm losses in the states of Alabama, Florida, Louisiana, Mississippi, New York, North Carolina, South Carolina, and Texas. They have an initial expected loss of 0.79% and came with price guidance for a risk interest spread of between 4% and 4.5%. The final pricing was at the mid-point for a spread of 4.25%.
What was a $150 million tranche of Class AAA-2 notes were finalised at $100 million in size. These notes are designed to provide two sections of cover, indemnity, occurrence in one section and aggregate third-event cover in another. These notes will cover losses from the perils of named storms, earthquakes, severe thunderstorms, winter storms and wildfires in the states of Alabama, California, Florida, Louisiana, Mississippi, New York, North Carolina, South Carolina and Texas so a slightly wider area of coverage as well. They have an initial expected loss of 1.51% and came with price guidance for a risk interest spread of between 5.5% and 6.25%. The final pricing was at the upper-end of 6.25%, sources said.
The $80 million tranche of Class AA notes are designed to provide indemnity, occurrence cover for losses from the perils of named storms, earthquakes, severe thunderstorms, winter storms and wildfires in the states of Alabama, California, Florida, Louisiana, Mississippi, New York, North Carolina, South Carolina and Texas. With an initial expected loss of 2.12%, they came with price guidance for a risk interest spread of between 6.5% and 7.25%. The final pricing was at 6.5%, so the bottom of guidance.
The final $200 million tranche of Class A notes are also designed to provide indemnity, occurrence cover for losses from the perils of named storms, earthquakes, severe thunderstorms, winter storms and wildfires in the states of Alabama, California, Florida, Louisiana, Mississippi, New York, North Carolina, South Carolina and Texas With an initial expected loss of 3.98%, they came with price guidance for a risk interest spread of between 9.25% and 10%. The final pricing in this case was at the top-end of 10%, we understand.
So, SageSure has secured its largest catastrophe bond sponsorship yet at $670 million, with a seemingly strong result for the company as all tranches priced within their initial guidance ranges.
Prior to this, the largest in the Gateway Re cat bond series was a $520 million Gateway Re Ltd. (Series 2025-1) issuance.
This new offering remains on course to eclipse that, while still targeting the broadest coverage in peril and regional terms of any cat bond in the Gateway Re series as well.
You can read all about this new Gateway Re Ltd. (Series 2026-1) catastrophe bond and every other cat bond deal in the Artemis Deal Directory.
