SageSure and Auros Close $150 Million Catastrophe Bond with Gateway Re Series 2025-2

SageSure and Auros Reciprocal Insurance Exchange Secure $150 Million Catastrophe Coverage SageSure, a leading managing general underwriter (MGU) specializing in catastrophe-prone markets, alongside Auros Reciprocal Insurance Exchange, a policyholder-owned insurance entity, have successfully closed their Gateway Re Series 2025-2 catastrophe bond, obtaining $150 million in insurance coverage. With this latest issuance, the Gateway Re franchise—backed by SageSure—has surpassed $2 billion in total notional limit, placing the MGU among the top five primary insurance carriers globally that sponsor catastrophe bonds, as of the current date. This bond series provides multi-year named storm reinsurance protection for both Auros, a newcomer to the insurance-linked securities (ILS) market, and Elevate Reciprocal Exchange. The issuance, initially targeted at $125 million, was upsized by 20% to $150 million, achieving a price execution in the lower half of its initial target range, marking another significant success for the franchise, according to SageSure. Terrence McLean, President and CEO of SageSure, remarked, “SageSure is thankful for the ILS community’s ongoing trust in this series, enabling significant protection and growth for our carrier partners. Our role as a leading cat bond sponsor highlights our dedication to ensuring the stability of our carrier partners—a multi-year, diversified reinsurance program ensures robust protection for both carriers and policyholders.” The Gateway Re 2025-2 Class A notes offer protection to Louisiana, Mississippi, South Carolina, and Texas from named storm threats over a three-year term, with the flexibility to include additional states at reset. Ed Konar, President of Auros Risk Management, stated, “Auros is thrilled with the strong investor support for our mission to safeguard coastal property owners. This issuance marks a pivotal milestone in our collaboration with SageSure, propelling our strategic expansion in catastrophe-exposed markets.” The transaction was exclusively structured and booked by Swiss Re Capital Markets, consistent with previous Gateway Re issuances. Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation, commented, “We are proud to partner with SageSure and Auros to successfully introduce the tenth Gateway Re catastrophe bond to the market. The increased limit and robust execution reflect investor confidence in SageSure’s adept exposure management, regulatory and capital optimization through carrier management, and the overall performance of the Gateway Re series.” For comprehensive insights into this cat bond and myriad other transactions, visit our insurance-linked securities (ILS) focused sister publication, Artemis’ extensive Deal Directory.

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