Pool Re expands retro cover for terrorism risks
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Pool Reinsurance Co. Ltd., the U.K.’s terrorism reinsurance backstop, said Wednesday it had placed its £2.4 billion ($3.1 billion) retrocession program with more than 50 reinsurers, expanding its 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, a Pool Re statement said.
Led by Munich Reinsurance Co., the retro program covers property damage arising from nuclear, biological, chemical, and radiological attacks, those arising from cyber-triggered terrorist losses, and conventional terrorist acts, Pool Re said.
Hannover Re SE also provided a significant part of the coverage, the statement said.
The program is structured as an aggregate excess-of-loss treaty which attaches 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, Pool Re said.
The new £100 million layer enabled Pool Re to reduce its attachment point to £400 million, Steve Coates, Pool Re’s chief underwriting officer, said in the statement.
Pool Re was established in 1993 by the U.K. government and insurance industry, and its members include most insurers and Lloyd’s of London syndicates that offer commercial property insurance in the United Kingdom.
