Pool Re announced it has increased its commercial reinsurance cover to £2 billion ($2.5 billion), compared with the £1.95 billion ($2.4 billion) of cover previously in place.
The placement further distances the UK Treasury, and thus, ultimately, the UK taxpayer from any potential liability, Pool Re said, noting that it also protects scheme assets, thereby increasing the sustainability of the pool and strengthening the UK’s terrorism resilience for future years.
The two-layer program, brokered by Guy Carpenter and placed with a stable and secure panel of reinsurance companies (which includes members of Pool Re as well as global reinsurers) led by Munich Re, mirrors the cover currently provided to Pool Re members and includes Chemical, Biological, Radioactive and Nuclear terrorism risk.
“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 Steve Coates, chief underwriting officer at Pool Re. “We will continue to extend our protection in the future, within the boundaries of cost and counter-party security.”
To date, Pool Re said, it has paid out claims of more than £600 million ($737.5 million) at no cost to the UK taxpayer.
Source: Pool Re
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