SageSure and Auros Reciprocal Insurance Exchange have closed the US$150 million Gateway Re Series 2025-2 catastrophe bond, marking the tenth issuance under the Gateway Re franchise.
The deal provides multi-year reinsurance coverage for named storms and brings the franchise’s total secured notional limit to over US$2 billion.
The latest transaction includes reinsurance protection for Auros – making its first entry into the insurance-linked securities (ILS) market – and Elevate Reciprocal Exchange. The bond was upsized by 20% from its original US$125 million target.
It offers three years of US named storm protection, with coverage initially applying to Louisiana, Mississippi, South Carolina, and Texas. Additional states may be added during future resets.
Swiss Re Capital Markets served as the sole structuring agent and bookrunner for the deal.
SageSure, a managing general underwriter focused on catastrophe-prone markets, supports the Gateway Re program. With this transaction, the firm now ranks among the top five primary insurance catastrophe bond sponsors globally based on cumulative notional issuance.
Terrence McLean, president and CEO of SageSure, said the support from the ILS community has contributed to risk protection and carrier partner growth.
In 2024, cat bond issuance totaled approximately US$17.7 billion, surpassing the previous record and increasing the overall market size to nearly US$50 billion. This represents a 7% rise from the prior year, reflecting insurers' heightened use of cat bonds to transfer risks associated with climate-related disasters to private investors.
Notably, the first half of 2024 saw issuance of US$12.6 billion, marking another record for the sector. The second quarter alone contributed US$8.4 billion across 34 transactions, making it the largest single quarter for issuance to date.
The momentum continued into 2025, with the first quarter witnessing a record US$7.1 billion in cat bond issuance. This activity expanded the outstanding market to an all-time high of US$52.2 billion, a 17% increase year-on-year. Traditional 144A property catastrophe bonds dominated the issuances, totaling US$6.3 billion.
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