SURE closes $150 million private placement catastrophe bond transaction
SageSure and SureChoice Underwriters Reciprocal Exchange (SURE) announced that SURE, a coastal property reciprocal insurer whose policies are exclusively available through SageSure, has closed a $150 million private placement catastrophe bond transaction. SURE entered into a three-year reinsurance arrangement with Gateway Re Ltd., a newly established Bermuda special purpose insurer, which will provide SURE with indemnity-based hurricane and named storm protection in Alabama, Louisiana, Mississippi, and Texas across three full Atlantic hurricane seasons.
“Our catastrophe bond is an essential part of our reinsurance structure and complements a tower backed by industry-leading reinsurers. We are proud to have successfully sponsored our first catastrophe bond that protects our business, backs our strategic growth in coastal markets, and demonstrates strong investor support for our mission.” – Ed Konar, president of SURE.
“SURE is integral to the SageSure ecosystem. Our partnership empowers us to deliver on our commitment to producers to provide stable, abundant capacity in challenging markets. We are excited to continue building a preferred book of business with SURE made possible by our superior underwriting and segmentation.” – Terrence McLean, CEO, and co-founder of SageSure.
Swiss Re Capital Markets and TigerRisk Capital Markets & Advisory acted as joint structuring agents and joint bookrunners on the transaction.