SageSure, a managing general underwriter focused on catastrophe-exposed property in the United States, and Arizona captive Anchor Re have secured a $50m catastrophe bond providing multi-year retrocessional protection against a series of US named storms.
The protection is for SageSure’s carrier partners SURE and SafePort and is Anchor Re’s debut catastrophe bond.
SageSure said the bond is unique unique in the insurance-linked securities (ILS) market because it is structured to use Property Claim Services (PCS) county-level catastrophe loss reporting in the trigger.
“We’re excited to see strong investor support for Anchor Re’s first catastrophe bond,” said Travis Lewis, director of Anchor Re.
“Anchor Re was formed to maximize capital and capacity efficiency, and this innovative catastrophe bond further bolsters the support it can provide for SURE and SafePort’s reinsurance programs.”
Anchor Re was established as a captive reinsurer in 2020 which provides scalable capacity exclusively for SageSure’s carrier partners. To date, Anchor Re has raised $100 million in capital.
Captive Intelligence reported yesterday that asset management giant Blackstone has used its Vermont-domiciled captive to sponsor a $250m indemnity catastrophe bond covering named storms and earthquakes in the United States and Canada.
On both cat bonds, Swiss Re Capital Markets acted as the sole structuring agent and bookrunner.
“Swiss Re Capital Markets is proud to have structured and placed SageSure’s innovative second and subsequent event cover for its captive reinsurer,” said Jean-Louis Monnier, head of ILS at Swiss Re.
“This fourth issuance under the Gateway Re program is designed with structural features that are accretive to ILS investors, while it provides valuable sideways coverage for Anchor Re. The continued success of the franchise reaffirms SageSure’s presence as a prominent ILS sponsor and investors’ confidence in SageSure and the Gateway Re program.”