Pool Re secures £100m of terrorism retrocession coverage with latest cat bond

Pool Re, a UK-based provider of terrorism reinsurance, has successfully completed the placement of its third catastrophe bond, Baltic PCC Limited (Series 2025-1), which provides the reinsurer with £100 million of collateralised retrocession protection.

This new issuance reinforces Pool Re’s ongoing commitment to shielding UK taxpayers from the financial impact of terrorism by promoting greater risk-sharing with the private sector.

Tom Clementi, Chief Executive Officer of Pool Re, said: “We are committed to reducing the financial burden on UK taxpayers and strengthening national economic resilience through increased private-sector participation in the UK terrorism market. As such, we are delighted to have successfully closed our third Cat Bond issuance.

“At Pool Re, we continue to lead the way in raising awareness and encouraging the development of terrorism-focused ILS solutions, and we are pleased to see a record number of global institutional investors participating in this transaction. We are also grateful to Moody’s, as the independent risk modeller on this placement, for providing investors with a comprehensive view of risk using the latest Moody’s RMS terrorism model.”

The £100 million transaction, issued via UK-based special purpose vehicle Baltic PCC Limited, offers collateralised retrocession protection and replaces the maturing Baltic PCC Limited (Series 2022-1).

The new 2025-1 Notes are priced at 5.90% and mark a significant expansion in investor participation, attracting a broader base of global institutional capital compared to previous bond offerings.

Pool Re stands to benefit from a source of occurrence protection for major terror attacks and frequency protection for a series of smaller terrorist attacks across England, Scotland and Wales.

Jordan Brown, Managing Director of Aon Securities, commented: “Aon Securities is honoured to have partnered with Pool Re in bringing this successful transaction to the ILS market. We are delighted with the response from the global investor base which is a testament to Pool Re and their team; new investors participated in the offering for the first time, expanding Pool Re’s access to a stable and diverse source of capital and to align with its mission of ceding more risk to the private sector.”

Philipp Kusche, Chairman of Howden Capital Markets & Advisory (“HCMA”) Europe and Co-Head of Global ILS, added: “HCMA is proud to support Pool Re in their efforts to re-enter the Cat Bond market and one of the defining features of this issuance was Pool Re’s holistic and comprehensive marketing efforts.

“These initiatives aimed to educate potential investors demystifying the nuances of this unique segment and Pool Re successfully attracted numerous additional investors supporting its panel. The focused educational campaign not only facilitated the success of this Cat Bond but also laid the groundwork for potential future issuances.”

Aon Securities Limited and Howden Capital Markets & Advisory (HCMA) served as Structuring Agents and Joint Bookrunners for the transaction. Legal counsel was provided by Clifford Chance.

You can read all about this cat bond and hundreds of other transactions on our insurance-linked securities (ILS) focused sister publication, Artemis’ extensive Deal Directory.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.