The inaugural Meritage Re Ltd Series 2026-1 catastrophe bond has closed at $200 million, its two sponsors have announced.

SageSure Holdings LLC, the largest residential property managing general underwriter in the US specialising in catastrophe-exposed markets, and GeoVera Nova Holdings Inc, a leader in earthquake, wind, and residential and commercial property insurance solutions, said the bond met with strong investor demand, allowing the transaction to price significantly tighter than initial guidance.

The first issuance from the newly established Bermuda special purpose vehicle, Meritage Re, is the first US named-storm catastrophe bond for the three ceding companies overseen by GeoVera Nova.

It will provide protection for SageSure’s carrier partners, GeoVera Insurance Company, GeoVera Specialty Insurance Company, and Safeport Insurance Company, against certain US named-storm losses over a three-year period.

“This catastrophe bond supports the growth of GeoVera Nova’s insurance companies to meet the continued demand for our differentiated solutions,” said John Forney, president and CEO of GeoVera Nova.

“By leveraging capital markets for hurricane protection, we are further diversifying our reinsurance programme and strengthening our ability to provide stable, reliable capacity in catastrophe-prone regions.”

Terry McLean, president and CEO of SageSure, added: “We are pleased to see the ILS market’s confidence in the GeoVera Nova and SageSure partnership.

“Capital markets continue to enhance the resilience of our programmes and position our carrier partners for long-term stability and success.”

Swiss Re Capital Markets Corporation acted as the sole structuring agent and bookrunner for the transaction.

“Strong investor interest for the Meritage Re issuance led to pricing well below the initial guidance,” said Jean-Louis Monnier, CEO of Swiss Re Capital Markets Corporation.

“This transaction highlights the market’s recognition of the quality of GeoVera Nova's portfolio and its confidence in SageSure's underwriting and claims handling platform.”