Investment Growth in Catastrophe Bonds: Gateway Re Ltd. Series 2026-2
Investor interest in insurance-linked securities facilitated the issuance of SageSure and Auros Reciprocal Insurance Exchange’s $175 million Gateway Re Ltd. Series 2026-2 catastrophe bond. This deal achieved competitive pricing, with Class A Notes priced below initial estimates and Class B Notes within forecasted parameters.
This issuance delivers a three-year indemnity-based coverage beginning July 1, 2026, for potential losses across six states: Florida, Louisiana, Mississippi, New York, South Carolina, and Texas. The protection includes coverage for secondary perils, such as wildfires and severe thunderstorms—events known to attract higher premiums in both reinsurance and ILS markets.
The Series 2026-2 bond succeeds the larger $670 million Series 2026-1 issue from earlier this year, which involved a five-tranche structure and also met pricing expectations. With the introduction of this bond, SageSure's franchises have amassed approximately $3 billion in active catastrophe bond notional limit, positioning it as a significant participant in global catastrophe bond sponsorship.
The Gateway Re program has expanded through multiple transactions over recent years. Notably, in 2025, SageSure, alongside its carrier partners, completed a $150 million Gateway Re Series 2025-2 bond focused on hurricane coverage in Gulf and southeastern states. An additional $100 million Gateway Re Series 2025-3 transaction was executed with an expedited timeline.
As a managing general underwriter, SageSure concentrates on residential property insurance within catastrophe-prone areas of the United States. The Gateway Re initiative is central to transferring these risk exposures to capital markets investors.
According to Terrence McLean, SageSure’s President and CEO, the transaction solidifies long-term investment and competitive positioning in coastal markets. McLean stated, "The success of this issuance is a testament to the transparency and performance of our underwriting platform, maintaining a competitive edge while securing the long-term, multi-year capacity necessary to protect policyholders."
Auros Reciprocal Insurance Exchange, a policyholder-owned entity collaborating with Interboro Insurance Company, utilizes the Gateway Re structure. Auros, which entered Louisiana and Mississippi's market in 2024 through SageSure, operates from Mississippi under Auros Risk Management.
Travis Lewis, CEO of Auros Risk Management, emphasized that the bond issuance secures enduring protection for policyholder members. Lewis commented, “The reception from the capital markets confirms the value investors place on the diversification and technical expertise Auros and SageSure offer, ensuring stable, high-quality protection through 2029.”