Latest Cat Bond news from the US newswires;
SageSure, a leading provider of catastrophe-exposed property insurance, and SureChoice Underwriters Reciprocal Exchange (“SURE”), a policyholder-owned coastal insurer, have successfully closed a $355 million Rule 144A catastrophe bond, a 78 percent upsize from the initial $200 million transaction target.
With the upsize, the deal is the largest cat bond issuance to date since Hurricane Ian, reflecting high levels of demand and widespread support from global insurance-linked securities (ILS) investors. The success of the execution speaks to the strength of SageSure and SURE’s reputation and track record.
“We continue to place significant value on the multi-year and diversified source of reinsurance our catastrophe bond program provides,” said Ed Konar, president of SURE. “Gateway Re is an essential part of our reinsurance structure and allows us to further the important work of protecting property owners in coastal markets.”
As part of the transaction, SURE has entered into a three-year reinsurance arrangement with Gateway Re Ltd., a Bermuda special purpose insurer, to receive multi-year protection against named storms.
SageSure and SURE first entered the cat bond market in May 2022 with its debut Gateway Re Ltd. 2022-1 issuance. The new cat bond expands US named storm coverage across North and South Carolina in addition to the states the previous bond covered: Alabama, Louisiana, Mississippi, and Texas.
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