SageSure is back in the catastrophe bond market right on the heels of closing its largest issuance yet, with a new deal that seeks $125 million or more in named storm reinsurance to initially protect the Aurous and Elevate reciprocal exchanges, Artemis has learned.Just last week, the $520 million Gateway Re 2025-1 catastrophe bond settled and became the largest yet for underwriting entities owned by or linked to coastal managing general underwriter (MGU) SageSure.Now, the company is back with what will be the eleventh catastrophe bond issuance in the Gateway Re series of deals, we have been told.Using the Gateway Re Ltd.

Bermuda domiciled special purpose insurer (SPI), a single tranche of Series 2025-1 Class A notes will be offered for sale to catastrophe bond funds and investors, with the proceeds set to be used to collateralize a reinsurance agreements between the SPI and the named ceding entities which are to begin the Auros Reciprocal Insurance Exchange and Elevate Reciprocal Exchange.It’s apparent that Elevate had purchased its own reinsurance tower in recent years, but for the upcoming mid-year renewals Elevate and Aurous will have a combined reinsurance tower, of which this catastrophe bond cover will become a component.We understand that SageSure can opt to add other subsidiaries as beneficiaries of the coverage in future, including entities that sit under Slaine Insurance Holdings, LLC, Novel Financial Holdings, LLC, or SafeChoice Insurance Company.

The notes will provide their US named storm reinsurance to the SageSure underwriting entities on an indemnity trigger and per-occurrence basis across a three year term, from July 2025 to the end of June 2028, we understand.The covered area will initially be the states of Louisiana, Mississippi, South Carolina and Texas, but at a reset in future additional states can be added, including Alabama, New York and North Carolina should the ceding company elect to.The currently $125 million of Series 2025-2 Class A notes would attach their coverage at $250 million of losses, exhausting it at $500 million we understand.

This gives the notes an initial attachment probability of 3.11%, an initial expected loss of 1.86% and we are told the price guidance they are offered with is in a range from 6.75% to 7.5%.Once again, it’s good to see SageSure continuing to seek to layer multi-year reinsurance from the capital markets into the reinsurance towers that support its range of underwriting entities.At this time, the SageSure-linked underwriting entities benefit from more than $2 billion of catastrophe bond protection, as shown in .

You can read all about this new catastrophe bond and every other cat bond deal in the Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.