Investor demand in the insurance-linked securities market supported the placement of SageSure and Auros Reciprocal Insurance Exchange’s $175m Gateway Re Ltd. Series 2026-2 catastrophe bond, with Class A Notes pricing below initial guidance and Class B Notes settling within the expected range.
The issuance provides three years of protection beginning July 1, 2026, covering losses in Florida, Louisiana, Mississippi, New York, South Carolina, and Texas. The transaction offers multi-peril indemnity protection for Auros Reciprocal Insurance Exchange and Interboro Insurance Company, which together act as the ceding insurer.
Coverage includes secondary perils such as wildfires and severe thunderstorms, risks that typically command higher premiums in the reinsurance and ILS markets.
The Series 2026-2 bond follows the $670m Gateway Re Ltd. Series 2026-1 catastrophe bond placed earlier in 2026. According to prior announcements from SageSure, that transaction included five tranches and also priced within initial guidance.
With the addition of the latest bond, SageSure-supported franchises now have roughly $3 billion in outstanding catastrophe bond notional limit, placing the managing general underwriter among the largest catastrophe bond sponsors globally.
The Gateway Re program has grown in recent years through multiple placements. In 2025, SageSure and carrier partners completed several issuances, including a $150m Gateway Re Series 2025-2 bond providing hurricane protection in Gulf and southeastern states, according to earlier company disclosures reported by industry outlets. Another transaction, Gateway Re Series 2025-3, raised $100m and was completed in a shortened placement timeline, industry coverage reported at the time.
SageSure operates as a managing general underwriter specializing in residential property insurance in catastrophe-exposed regions of the United States. The Gateway Re program is used to transfer portions of that catastrophe exposure to capital markets investors.
Terrence McLean, president and chief executive officer of SageSure, said the transaction provides multi-year capacity supporting coverage in coastal markets.
“The success of this issuance is a testament to the transparency and performance of our underwriting platform,” McLean said. “Achieving this level of execution allows us to maintain a competitive edge while securing the long-term, multi-year capacity necessary to protect policyholders in dynamic coastal markets. We are grateful for the continued investor confidence in both our mission and our outperformance.”
Auros Reciprocal Insurance Exchange, a policyholder-owned property insurer, participates in the Gateway Re structure alongside Interboro Insurance Company.
Auros entered the homeowners’ insurance market in Louisiana and Mississippi in 2024 through a partnership with SageSure. The reciprocal exchange is domiciled in Mississippi and operates through Auros Risk Management, its attorney-in-fact.
Travis Lewis, chief executive officer of Auros Risk Management, said the catastrophe bond provides long-term protection for the insurer’s members.
“The reception from the capital markets for this transaction confirms that investors value the diversification and technical rigor Auros and SageSure bring to the table,” Lewis said. “With this issuance, we ensure stable, high-quality protection for our members through 2029.”
