Pool Re, Britain’s leading terrorism reinsurer, has completed a three-year £2.47 billion 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 nuclear, biological, chemical, and radiological attacks. Along with 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 £400 million in any year, after member insurers’ combined retention of £250 million per event or £420 million in aggregate. The £2.475 billion is an increase from £2.4 billion in 2019 and includes £75 million provided under Pool Re’s existing terrorism catastrophe bond. Commenting on the retrocession, Steve Coates, Pool Re’s chief underwriting officer, says: “Despite a difficult market we were delighted to achieve flat pricing for this important placement. Through our Solutions offering, Pool Re has invested significantly in data and analytics over recent years with a focus on modelling of nuclear, biological, chemical, and radiological attacks risks, which is particularly relevant in light of the pandemic.” He adds: “Reinsurers know that we have a strong focus on risk management through our research, and combined with their view of the terrorism market as a sensible diversification away from pure natural catastrophe risk, this means that we were able to engage with a number of new markets and achieve a very positive result.”
