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SageSure and SureChoice Underwriters Reciprocal Exchange Close Record-Breaking $670M Cat Bond
•February 19, 2026
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Why It Matters
The record‑size bond demonstrates the growing appetite for insurance‑linked securities, providing vital capital to underwrite U.S. catastrophe risk and reinforcing ILS as a core reinsurance tool.
Key Takeaways
- •$670M cat bond sets SageSure's record issuance.
- •SageSure becomes third largest global cat bond sponsor.
- •New bond adds earthquake, thunderstorm, winter storm, wildfire coverage.
- •Five tranches priced within guidance, showing strong investor demand.
- •Total outstanding notional for SageSure franchises reaches $3.1B.
Pulse Analysis
The $670 million Gateway Re Series 2026‑1 cat‑bond marks a watershed moment for the insurance‑linked securities (ILS) market, highlighting how capital markets are increasingly tapped to fund catastrophe risk. By securing capacity from a diverse investor base, SageSure and SURE have not only broadened their peril portfolio but also signaled confidence in their underwriting discipline. This infusion of capital enables insurers to offer more comprehensive protection against high‑impact events, reducing reliance on traditional reinsurance layers.
Beyond sheer size, the bond’s structure—five tranches priced within guidance—illustrates the market’s appetite for nuanced risk layering. Investors are attracted to the expanded coverage set, which now includes earthquakes, severe thunderstorms, winter storms and wildfires, alongside traditional named‑storm protection. Such diversification spreads risk across multiple perils, enhancing the appeal of ILS instruments to a broader range of institutional investors seeking uncorrelated returns.
Strategically, the transaction propels SageSure into the top three global cat‑bond sponsors, a status that bolsters its negotiating power with both cedents and capital providers. The $3.1 billion of outstanding notional across its franchises positions the firm as a cornerstone of the ILS ecosystem, likely encouraging further program expansions. For the broader reinsurance industry, this deal underscores the maturation of the cat‑bond market as a reliable source of stable capacity, essential for protecting catastrophe‑exposed communities and sustaining insurer solvency in an era of increasing climate volatility.
Deal Summary
SageSure, a managing general underwriter, and SureChoice Underwriters Reciprocal Exchange (SURE) have closed the Gateway Re Ltd. Series 2026-1 catastrophe bond with an original principal amount of $670 million, the largest issuance for SageSure to date. Structured and bookrun by Swiss Re Capital Markets Corporation, the bond expands coverage to earthquakes, severe thunderstorms, winter storms, and wildfires, positioning SageSure as the third largest cat‑bond sponsor globally.
Article
Source: Reinsurance News
SageSure, a managing general underwriter (MGU) focused on catastrophe-exposed property in the US, and SureChoice Underwriters Reciprocal Exchange (SURE), a member-owned reciprocal exchange, have successfully closed the Gateway Re Ltd. Series 2026-1 catastrophe bond.
The transaction closed at an original principal amount of $670 million, marking the franchise’s largest issuance to date.
This landmark deal has propelled SageSure into the position of the third largest cat bond sponsor in the world, according to the Artemis leaderboard.
The series 2026-1 issuance consisted of five tranches, all of which priced within initial guidance, signalling strong investor trust in the Gateway Re series.
With the close of this transaction, SageSure-supported franchises now have $3.1 billion in outstanding notional limit.
The Gateway Re 2026-1 catastrophe bond marks a significant expansion of the franchise’s peril base, building on the success of the $520 million Gateway Re Series 2025-1 issuance.
While the 2025-1 bond has offered essential named storm coverage since its inception last year, the new 2026-1 issuance extends coverage to include earthquakes, severe thunderstorms, winter storms, and wildfires.
This broadened protection applies across all eligible states for SURE, Elevate Reciprocal Exchange, and SafeChoice Insurance Company.
“We are grateful for the strong investor support for the Gateway Re series. This issuance exemplifies the important role of capital markets within our broader reinsurance strategy to support our growth,” said Ed Konar, President of SURE. “We look forward to expanding our programs with SageSure to bring stable capacity to more catastrophe-exposed communities.”
Terrence McLean, President and CEO of SageSure, added: “SageSure is proud to be a champion of the expansion of ILS and the cat bond market. This $670 million in capacity is not only the largest in our program’s history but also a signal that the Gateway Re franchise has become a cornerstone of the global ILS market. SageSure will continue to innovate in the ILS and cat bond markets so that we can bring the most competitive products to market.”
Swiss Re Capital Markets Corporation acted as the sole structuring agent and bookrunner for the transaction.
“This transaction marks a significant milestone for the Gateway Re franchise,” said Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation. “The scale of this transaction combined with the successful inclusion of secondary perils across different risk layers further demonstrates investors’ appreciation for SageSure’s transparency and underwriting discipline and positions ILS as a core component of their reinsurance strategy.”
For more information on the Gateway Re Ltd. Series 2026-1 catastrophe bond and hundreds of other transactions, visit the Artemis Deal Directory.
The post SageSure and SURE close record-breaking $670m cat bond appeared first on ReinsuranceNe.ws.
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