Investment of $50 million in Seawall Reinforcement Project by SageSure and Anchor Secured
SageSure, a leading managing general underwriter focused on catastrophe-exposed markets, has made significant strides in diversifying its capacity solutions. The company has recently closed two major transactions: the debut reinsurance sidecar transaction named Seawall Re Ltd., and various series of catastrophe bonds, such as the Gateway Re Series.
Diversification of Capacity Solutions
The Seawall Re sidecar and catastrophe bonds like the Gateway Re series allow SageSure to tap into additional reinsurance capacity from capital market investors. This expansion supports SageSure's growing underwriting operations in catastrophe-exposed markets.
Efficient Capital Access
These transactions offer an efficient way for capital market investors to participate in SageSure's underwriting results, driven by catastrophe risk underwriting, claims management, and portfolio management. This access to capital enhances SageSure's ability to manage and grow its underwriting business.
Strategic Risk Management
By leveraging both sidecars and catastrophe bonds, SageSure can manage catastrophe risks more strategically. The Seawall Re sidecar, for instance, focuses on providing retrocessional protection for Anchor Re, while catastrophe bonds via Gateway Re protect a broad range of underwriting entities.
Stabilization of Risk Profile
The transactions help stabilize SageSure's risk profile by providing additional reinsurance capacity and spreading risk among capital market investors. This stability is attractive to investors, as it offers a more predictable return on investment.
Enhanced Protection Against Diverse Perils
SageSure's strategy includes using sidecars and catastrophe bonds to extend protection beyond primary hurricane risks. For example, the Seawall Re sidecar is aimed at covering other perils such as severe convective storms, which complements SageSure's existing hurricane and earthquake protections.
Attractive Returns
By offering a stable risk profile with diverse peril coverage, SageSure can attract investors seeking positive returns from catastrophe-exposed underwriting operations. This appeal to investors supports SageSure's growth in managing catastrophe risks.
Four of SageSure's carrier partners - SureChoice Underwriters Reciprocal Exchange, SafeChoice Insurance Company, Auros Reciprocal Insurance Exchange, and Elevate Reciprocal Exchange - benefit from this extra capacity. The funding will enable SageSure to increase underwriting capacity in catastrophe-exposed markets.
The SageSure-supported Gateway catastrophe bond transactions continue to take place, as evidenced by the completion of the Gateway Re Series 2025-2 deal. Liam Martens, Managing Director of GC Securities, expressed pride in supporting SageSure and Anchor Re in the debut Seawall Re sidecar issuance, citing strong execution and the resonance of SageSure's differentiated catastrophe risk underwriting and portfolio management approach with investors.
These transactions, significant in the US insurance market, underscore SageSure's commitment to innovation and growth in the catastrophe-exposed property insurance sector. Seawall Re, a Bermuda-based special purpose insurer (SPI), and the various catastrophe bond series demonstrate SageSure's ability to tap into diverse sources of capital to support its underwriting operations and manage risk more effectively.
The Seawall Re sidecar and catastrophe bonds like the Gateway Re series allow SageSure to access additional funds from capital market investors in the finance industry, which supports its growing underwriting operations in property insurance, particularly catastrophe-exposed markets (Diversification of Capacity Solutions).
These transactions, such as the Seawall Re sidecar and the Gateway Re Series, offer capital market investors the opportunity to participate in SageSure's underwriting results, driven by events like catastrophe risk underwriting, claims management, and portfolio management, thus enhancing SageSure's ability to manage and grow its underwriting business (Efficient Capital Access).
By utilizing both sidecars and catastrophe bonds, SageSure is able to manage catastrophe risks more strategically, enabling coverage for a variety of perils beyond primary hurricane risks, such as severe convective storms, thereby providing enhanced protection to its carrier partners in the reinsurance industry (Strategic Risk Management).
