Pool Re completes placement of new £2.75bn retrocession programme

Britain’s government-backed terrorism reinsurer, Pool Re, has completed the placement of a new retrocession programme with over 60 international reinsurers, providing £2.75 billion of aggregate excess of loss cover, up from £2.4 billion.

This placement reportedly provides reinsurance for property damage resulting from acts of terrorism certified by the UK Government, covering both conventional and nuclear, biological, chemical and radiological attacks, as well as those from a limited cyber extension.

Pool Re suggested that the expanded programme transfers more financial risk from acts of terrorism away from UK taxpayers to the private market while ensuring that terrorism insurance remains accessible and affordable for businesses.

This aligns with Pool Re’s early February announcement, in which it indicated a significantly greater need for private market retrocession coverage than in previous years.

Hannover Re and The Fidelis Partnership are among those providing pricing guidance, while the placement was brokered by Guy Carpenter.

Jonathan Gray, Pool Re’s CUO, commented, “We are pleased with the strong support received from reinsurers, with many existing markets increasing their capacity and a number of new partners added to our panel.

“This increased participation reflects confidence in our approach and enhances our ability to manage risk effectively. We also value our continued collaboration with Guy Carpenter in securing this deal.”

Tom Clementi, Pool Re’s CEO, said, “The expanded programme aligns with Pool Re’s strategy to transfer UK terrorism risk to the market, further reducing the taxpayer’s exposure to potential losses. This remains a key pillar of our strategy and we are delighted with this successful outcome.”

Paul Moody, Guy Carpenter’s CEO UK, added, “Guy Carpenter is proud to have secured another successful renewal for Pool Re, supporting them with their mandate to return more terrorism risk to the private market. Obtaining £2.75 billion of capacity is a significant milestone and we thank all of Pool Re’s reinsurers for their support.”

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