Pool Re has completed the placement of its third catastrophe bond, issuing £100 million of collateralized retrocession protection through a UK-based special purpose vehicle, Baltic PCC Limited.
The new issuance, designated as the 2025-1 Notes, replaces the Series 2022-1 Notes issued in March 2022 and is priced at 5.90%.
The bond expands Pool Re’s base of retrocession partners by drawing participation from a wider group of global institutional investors than seen in previous transactions.
The company said that this approach aligns with its broader objective of increasing private-sector participation in the UK's terrorism insurance market and reducing the reliance on public funds to manage terrorism-related losses.
Pool Re CEO Tom Clementi (pictured above) said the latest bond issuance reflects Pool Re’s continued role in promoting terrorism-related insurance-linked securities (ILS) and noted a record level of investor engagement in the transaction.
The first issuance of Baltic PCC Limited was in February 2019. Its size was at £75 million and provided Pool Re with retrocessional reinsurance protection against terrorism-related losses in England, Scotland, and Wales. The notes priced at the top end of initial guidance with a risk spread of 5.9%
The second, Baltic PCC Limited (Series 2022-1), was issued in March 2022, with a size of £100 million, upsized from an initial target of £75 million. Coverage was renewed and expanded coverage similar to the 2019 issuance, offering Pool Re retrocessional reinsurance protection against terrorism-related losses in England, Scotland, and Wales.
The Series 2022-1 notes were priced with a risk spread of 5.5%, lower than the 5.9% of the 2019 issuance, reflecting strong investor demand.
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