SafePort and SageSure close $125m Gateway Re II debut cat bond


SafePort Insurance Company and SageSure have successfully closed on a $125 million Gateway Re II catastrophe bond, exceeding the initial target by 25% with pricing at the bottom end of initial guidance.

“This newly formed cat bond program enables SafePort to meet the rising market demand for highly rated capacity in the states we serve by providing essential reinsurance protection,” said Andy DiLoreto, CEO of SafePort’s management company.

“We appreciate the strong ILS investor support for the SafePort and SageSure partnership and our mission to provide dependable property protection.”

SafePort has obtained collateralized reinsurance protection against losses for US named storms in several states including Alabama, Louisiana, Mississippi, New York, North Carolina, South Carolina, Texas, and Virginia through the Gateway Re II 2023-1 cat bond. The protection will last for multiple years.

“Supporting our carrier partners in securing reinsurance capacity has been key to navigating a historically hard reinsurance market,” said Terrence McLean, CEO and co-founder of SageSure. “The support from the global ILS community is gratifying, as is the fact that our track record of maintaining healthy and balanced portfolios continues to resonate,” McLean added.

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The Class A Notes of the cat bond amounting to $125 million cover the ultimate net loss of $130 million and will be exhausted at $280 million, which provides ample coverage for SafePort’s portfolio with reduced cat risk exposure.

Swiss Re Capital Markets acted as the sole structuring agent and bookrunner for the transaction.

“Swiss Re Capital Markets is proud to guide SafePort through its debut cat bond issuance and to see continued investor confidence in SageSure and its carrier partners,” said Jean-Louis Monnier, Global Head of ILS at Swiss Re.

You can read all about this new Gateway Re II Ltd. (Series 2023-1) cat bond and every other cat bond issuance since the market began in the Artemis Deal Directory.

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