US residential property managing general underwriter SageSure and policyholder-owned insurer Auros Reciprocal Insurance Exchange have successfully completed a $175 million catastrophe bond issuance through Gateway Re Ltd. Series 2026-2.
The new issuance strengthens SageSure’s presence in the insurance-linked securities (ILS) market, following the recently completed $670 million Gateway Re 2026-1 catastrophe bond transaction.
Together, the two deals bring SageSure’s total outstanding catastrophe bond capacity to approximately $3 billion, placing the company among the top three catastrophe bond sponsors globally.
Strong Investor Demand for Gateway Re 2026-2
Investor demand for the Gateway Re 2026-2 deal proved strong, with the final pricing set below initial guidance for the Class A notes and within the expected range for the Class B notes.
The favorable pricing highlights continued investor confidence in SageSure’s underwriting platform and catastrophe risk strategy.
Terrence McLean, President and CEO of SageSure, said the success of the issuance reflects the strength of the company’s underwriting operations.
According to McLean, securing multi-year capital from global investors allows SageSure to remain competitive while continuing to protect policyholders in catastrophe-exposed coastal markets.
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Catastrophe Bond Provides Multi-Peril Coverage
The Gateway Re 2026-2 transaction delivers multi-peril indemnity coverage for both Auros Reciprocal Insurance Exchange and Interboro Insurance Company.
At launch, the catastrophe bond covers risks across six US states:
- Florida
- Louisiana
- Mississippi
- New York
- South Carolina
- Texas
The coverage will run for three years starting July 1, 2026.
Importantly, the structure includes secondary perils such as wildfires and severe thunderstorms, risks that typically attract higher pricing in the reinsurance and ILS markets.
Despite these challenges, the deal achieved efficient pricing, demonstrating strong market appetite for well-structured catastrophe risk.
ILS Market Continues to Expand
The transaction highlights the growing importance of catastrophe bonds and the insurance-linked securities market as insurers seek additional capital to manage extreme weather risks.
Travis Lewis, CEO of Auros Risk Management, noted that capital markets investors increasingly value the diversification benefits offered by catastrophe risk.
He explained that the issuance ensures stable protection for policyholders through 2029 while reinforcing the long-term resilience of the insurance program.
Swiss Re Supports the Transaction
The deal was structured and arranged by Swiss Re Capital Markets Corporation, which acted as the sole structuring agent and bookrunner.
Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation, said the transaction demonstrates strong investor appetite for diversified catastrophe risk.
He also emphasized that the success of the issuance reflects confidence in SageSure and Auros’ long-term growth strategy and their ability to structure efficient multi-peril coverage.
Why Catastrophe Bonds Are Important for Insurers
Catastrophe bonds allow insurance companies to transfer extreme disaster risks to capital market investors, helping companies maintain financial stability after major natural disasters.
These securities have become increasingly popular as climate-related risks grow, especially in hurricane-prone and coastal regions of the United States.
By tapping the ILS market, insurers like SageSure can access additional reinsurance capacity and long-term funding, improving protection for both policyholders and investors.
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Company Profile: SageSure
SageSure is a leading US managing general underwriter specializing in residential property insurance in catastrophe-exposed regions.
Founded to address the growing insurance gap in coastal markets, SageSure partners with insurance carriers and reinsurers to deliver technology-driven underwriting, risk management, and insurance solutions.
The company has become a major participant in the insurance-linked securities market, using catastrophe bonds and alternative capital to secure long-term protection for homeowners in high-risk areas across the United States.
