Government-backed mutual terrorism reinsurer Pool Re has increased its commercial reinsurance cover from £1.95 billion to £2 billion.
Pool Re said the renewed cover protects scheme assets, increasing the sustainability of the pool and strengthening the UK’s terrorism resilience for future years. It also further distances the Treasury and UK taxpayers from any potential liability.
“This increased retrocession limit is not only evidence of Pool Re’s strategy to protect its stakeholders, but also to allow the market to write as much UK terrorism risk as they are able,” said Pool Re chief underwriting officer Steve Coates.
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“We will continue to extend our protection in the future, within the boundaries of cost and counter-party security,” Coates added.
Brokered by
Guy Carpenter, the two-layer programme is placed with a panel of reinsurance companies, including Pool Re members and global reinsurers led by industry giant
Munich Re.
The programme mirrors the cover currently provided to Pool Re members and includes chemical, biological, radioactive and nuclear terrorism risk.
“Guy Carpenter is delighted to have represented Pool Re in the purchase of this landmark limit that facilitates the returning of risk to the global market,” said James Nash, international division president at Guy Carpenter.
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