SageSure and GeoVera Nova have completed a US$200 million catastrophe bond issuance, marking the first transaction from the newly established Meritage Re Ltd. special purpose vehicle in Bermuda.
The Series 2026-1 bond will provide coverage for US named storm losses over a three-year period. It protects three insurance carriers overseen by GeoVera Nova: GeoVera Insurance Company, GeoVera Specialty Insurance Company, and Safeport Insurance Company.
The transaction also represents the first US named storm catastrophe bond for the three ceding companies. According to the companies, investor demand allowed the bond to price below initial guidance.
SageSure operates as a managing general underwriter focused on residential property insurance in catastrophe-exposed markets. GeoVera Nova provides earthquake, wind, and property insurance solutions for both residential and commercial clients.
The Meritage Re transaction adds to SageSure's existing presence in the insurance-linked securities market. The company has issued multiple catastrophe bonds through its Gateway Re franchise since 2018, with the series surpassing US$2.1 billion through 11 issuances.
The Gateway Re program has provided named storm coverage for SageSure's affiliated reciprocal exchanges, including Elevate and Auros.
John Forney, president and CEO of GeoVera Nova, said the bond supports the growth of the company's insurance carriers to meet demand for its products.
"By leveraging capital markets for hurricane protection, we are further diversifying our reinsurance program and strengthening our ability to provide stable, reliable capacity in catastrophe-prone regions," Forney said.
Terry McLean (pictured above), president and CEO of SageSure, said the transaction reflects market confidence in the partnership between SageSure and GeoVera Nova. He added that capital markets access continues to support the long-term stability of the company's carrier partners.
Swiss Re Capital Markets Corporation served as sole structuring agent and bookrunner for the transaction.
Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation, said investor interest resulted in pricing below initial guidance. He noted that the transaction reflects market recognition of GeoVera Nova's portfolio and confidence in SageSure's underwriting and claims handling operations.
