SageSure, one of the largest managing general underwriters focused on catastrophe-exposed markets, and Anchor Re, a reinsurance vehicle, have secured $50 million of third-party capital with the debut reinsurance sidecar transaction with Seawall Re Ltd., a Bermuda-based special purpose insurer.
A sidecar investment is a strategy in which one investor allows a second investor to control how to invest their capital. This strategy in effect places trust in someone else’s ability to gain profits.
With the formation of the Seawall Re sidecar, SageSure enables an efficient way for capital market investors to participate in its profitable underwriting results driven by catastrophe risk underwriting, claims, and portfolio management. SageSure produces business for multiple carrier partners that cede risk to Anchor Re, resulting in a stable catastrophe-risk profile already insulated by quota share and catastrophe excess of loss agreements with Anchor Re.
“SageSure is excited to continue diversifying capacity solutions that support our growing underwriting operations in catastrophe-exposed markets,” said Terrence McLean, president and CEO of SageSure. “The sidecar provides extra protection for Anchor Re and our carrier partners while directly connecting third-party capital to a stable risk profile expected to generate positive returns. We are grateful for the strong investor support for this transaction.”
With a “losses occurring during” quota share structure, the transaction provides protection for Anchor Re for the 2025-2026 treaty year. Four of SageSure’s carrier partners—SureChoice Underwriters Reciprocal Exchange, SafeChoice Insurance Company, Auros Reciprocal Insurance Exchange, Elevate Reciprocal Exchange—benefit from this extra capacity.
“The inaugural Seawall Re sidecar transaction is a significant milestone in our partnership with SageSure,” said Travis Lewis, director of Anchor Re. “SageSure’s diligent underwriting and portfolio management have resulted in an appealing risk profile we believe is difficult to replicate. We’re grateful for the investor trust in our growth and success.”
GC Securities, a division of MMC Securities LLC, acted as the sole structuring and placement agent for the sidecar transaction.
“We’re proud to have supported SageSure and Anchor Re in the debut Seawall Re sidecar issuance,” said Liam Martens, Managing Director of GC Securities. “The strong execution signals that SageSure’s differentiated catastrophe risk underwriting and portfolio management approach resonates with investors.”
SageSure is one of the largest managing general underwriters focused on catastrophe-exposed property in the US. SageSure operates in 16 states, protects more than 850,000 policyholders, and manages more than $2.5 billion of inforce premium. Founded in 2020, Anchor Re is an Arizona-domiciled captive reinsurer that provides scalable capacity exclusively for SageSure’s carrier partners.
