Pool Re, a leading British terrorism reinsurer, said it has completed placement of its £2.4 billion retrocession program with more than 50 international reinsurers, led by Munich Re. Hannover Re also provided a significant part of the coverage.
The £2.4 billion is an increase from £2.3 billion in 2018 and includes £75 million provided under Pool Re’s terrorism catastrophe bond, which was launched last year.
The new retrocession is structured as an aggregate excess of loss treaty which will attach if Pool Re’s losses, individually or in aggregate, exceed £400 million in any year, after member insurers’ combined retention of £250 million per event or £410 million in aggregate.
Reflecting the underlying insurance provided by Pool Re through its member insurers, the retrocession covers property damage arising from nuclear, biological, chemical, and radiological attacks; those arising from cyber-triggered terrorist losses; as well as conventional terrorist acts.
Pool Re said this risk was modelled using Pool Re’s own model, which was developed in collaboration with Cranfield University and Guy Carpenter.
Julian Enoizi, Pool Re chief executive, said the program is a core part of a strategy of “further distancing the taxpayer from potential loss.”
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