POOL RE UPSCALES RETRO PLACEMENT TO £2.475BN

The UK’s state-backed terrorism reinsurer, Pool Re, has completed the placement of its three-year, £2.475bn ($3.48bn) retrocession programme with 56 international reinsurers. The placement is led by Munich Re, with Hannover Re and Fidelis among those providing significant capacity. The retrocession covers property damage arising from chemical, biological, radiological and nuclear (CBRN) attacks and those arising from cyber-triggered terrorist losses, as well as conventional terrorist acts. The retrocession is structured as an aggregate excess-of-loss treaty, which will respond if Pool Re’s losses, individually or in aggregate, exceed £400m in any year, after member insurers’ combined retention of £250m per event or £420m in aggregate. The £2.475bn retro cover is an increase from £2.4bn in 2019 and includes £75m provided under Pool Re’s existing terrorism cat bond. Coverage was provided by existing and new markets.