SageSure and SureChoice Underwriters Reciprocal Exchange (SURE) have closed the Gateway Re Ltd. Series 2026-1 cat bond at $670 million, the largest single issuance in the franchise's history, as the property managing general underwriter rises to become the third-largest catastrophe bond sponsor globally.
The close brings total outstanding notional limits across SageSure-supported franchises to $3.1 billion. All five tranches of the Gateway Re Series 2026-1 priced within initial guidance.
That places SageSure ahead of State Farm and behind only Florida Citizens Property Insurance Corporation and Allstate, all three of which had surpassed $3 billion in outstanding cat bond capacity by mid-2025, broader insurance-linked securities (ILS) market data shows.
The deal also marks the first time the franchise has expanded its peril base beyond named storms to include earthquakes, severe thunderstorms, winter storms, and wildfires across all eligible states for SURE, Elevate Reciprocal Exchange, and SafeChoice Insurance Company.
The issuance lands amid a sustained surge in catastrophe bond activity. Cat bond issuance reached $25.6 billion in 2025, eclipsing the prior-year record of just under $17.7 billion by 45%. The outstanding market hit $61.3 billion – a 24% year-on-year increase – with 122 transactions completed and 15 first-time sponsors entering the space during the year.
Swiss Re's Andy Palmer has estimated that issuance could reach around $20 billion in 2026, which would still rank as the second-largest year on record. Fitch Ratings expects continued growth, pointing to the expansion of non-peak perils including wildfire, cyber, and casualty risks as key demand drivers.
The Gateway Re Series 2026-1 builds on the $520 million Gateway Re Series 2025-1 issued last year, which provided named storm coverage. Earlier this year, SageSure also completed a separate $200 million cat bond through a new Bermuda vehicle, Meritage Re Ltd., in partnership with GeoVera Nova – the firm's first issuance outside the Gateway Re franchise, covering US named storm losses for GeoVera Nova's three insurance carriers.
Ed Konar (pictured above), president of SURE, said the transaction underscored the role of capital markets in the organization's reinsurance strategy.
"We are grateful for the strong investor support for the Gateway Re series," Konar said, adding that SURE planned to grow its programs with SageSure to deliver capacity to more catastrophe-exposed communities.
Terrence McLean, president and CEO of SageSure, described the Gateway Re franchise as a fixture in the global insurance-linked securities market.
"SageSure is proud to be a champion of the expansion of ILS and the cat bond market," McLean said.
Swiss Re Capital Markets Corporation served as the sole structuring agent and bookrunner. Jean-Louis Monnier, its CEO, noted that the scale of the deal and the inclusion of secondary perils across different risk layers reflected investor confidence in SageSure's underwriting discipline.
