SageSure and SureChoice Underwriters Reciprocal Exchange (SURE) announced that SURE, a coastal property reciprocal insurer whose policies are exclusively available through SageSure, has successfully closed a $150 million private placement catastrophe bond transaction.
Houston, Texas-based 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.
The transaction was announced with an initial target of $150 million and was oversubscribed, closing at the target $150 million. The inaugural issuance closed within initial pricing guidance amidst a market where many catastrophe bond transactions have priced above their initial range or were pulled due to insufficient demand at a target price level. Investors were encouraged by SURE and SageSure’s record of outperformance in managing portfolio risks.
Swiss Re Capital Markets and TigerRisk Capital Markets & Advisory acted as joint structuring agents and joint bookrunners on the transaction.
Source: SageSure
Topics Catastrophe
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