SafePort and SageSure Close Debut $125 Million Gateway Re II Catastrophe Bond at a 25% Upsize

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SafePort Insurance Company, a highly rated property insurer, and SageSure , a leading provider of catastrophe-exposed property insurance, have partnered to successfully close on the placement of a $125 million Rule 144A catastrophe bond.

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Provider: 
Business Wire, Inc.Business Wire, Inc.
Retrieved on: 
Wednesday, April 26, 2023
Information
Tags: 
Professional Services, Insurance, Finance, Partnership, Bookrunner, SEC Rule 144A, Swiss Re, SURE, ILS, Risk, Reinsurance
Geotags: 
NEW JERSEY, UNITED STATES, NORTH AMERICA, MISSISSIPPI, NORTH CAROLINA, LOUISIANA, NEW YORK, US, SOUTH CAROLINA, TEXAS, ALABAMA, VIRGINIA
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Organisation: 
SAFEPORT INSURANCE, SAGESURE, SAFEPORT INSURANCE COMPANY
Summary
Key Points: 
  • SafePort Insurance Company, a highly rated property insurer, and SageSure , a leading provider of catastrophe-exposed property insurance, have partnered to successfully close on the placement of a $125 million Rule 144A catastrophe bond.
  • The bond closed at a 25 percent upsize from the initial $100 million transaction target, with pricing at the bottom-end of initial guidance.
  • Gateway Re II Ltd. Series 2023-1 represents SafePort’s first cat bond sponsorship, and the deal’s oversubscription reflects SageSure’s established reputation with global insurance-linked securities (ILS) investors.
  • “The successful execution for SafePort is evidenced by both the notional upsize and pricing at the low end of guidance.


SafePort Insurance Company, a highly rated property insurer, and SageSure, a leading provider of catastrophe-exposed property insurance, have partnered to successfully close on the placement of a $125 million Rule 144A catastrophe bond. The bond closed at a 25 percent upsize from the initial $100 million transaction target, with pricing at the bottom-end of initial guidance.

Gateway Re II Ltd. Series 2023-1 represents SafePort’s first cat bond sponsorship, and the deal’s oversubscription reflects SageSure’s established reputation with global insurance-linked securities (ILS) investors. SageSure and one of its carrier partners, SureChoice Underwriters Reciprocal Exchange (SURE), have previously secured two Gateway Re issuances, the most recent in February 2023 that met with widespread demand, closing at $355 million, a 78 percent upsize from the initial target of $200 million.

“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.”

The Gateway Re II 2023-1 cat bond provides SafePort with multi-year and collateralized reinsurance protection against losses for US named storms across Alabama, Louisiana, Mississippi, New York, North Carolina, South Carolina, Texas, and Virginia.

“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.”

The $125 million of Class A Notes attach at $130 million of ultimate net loss and exhaust at $280 million, sufficiently covering the remote loss scenarios based on the reduced catastrophe risk exposure of SafePort's portfolio. 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. “The successful execution for SafePort is evidenced by both the notional upsize and pricing at the low end of guidance. This demonstrates the strong investor appetite that exists for sponsors with an established track record and a cohesive underwriting and claims management strategy.”

About SafePort Insurance Company

SafePort Insurance Company provides the protection property owners need to thrive today and to be ready for tomorrow. Rated A- by A.M. Best and founded in 1978, SafePort is managed by a team of insurance leaders committed to bringing innovative and proven insurance solutions to Southeast, Northeast, and Gulf states. With more than 50,000 policyholders and $125 million of inforce premium, SafePort offers homeowners, dwelling fire, and commercial coverage through SageSure, SafePort’s exclusive program manager since 2016. To learn more, visit safeportinsurance.com.

About SageSure

SageSure is the managing general underwriter specializing in coastal residential and commercial property insurance. SageSure offers more than 50 competitively priced insurance products in 14 coastal states on behalf of its carrier partners, serves more than 400,000 policyholders, and has more than $1 billion of inforce premium. Since its launch in 2009, SageSure has been pioneering property insurance through its market-leading online quoting and binding platform and its sophisticated risk modeling and scoring technology. For more information, visit sagesure.com.

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