The Australian Reinsurance Pool Corporation (ARPC) has renewed its $3.315 billion retrocession reinsurance program and increased its reinsurance capacity by $250 million for the 2019 calendar year.
The retrocession reinsurance program, plus ARPC’s net assets and the $10 billion Commonwealth guarantee, covers Australian-based commercial and eligible property assets of more than $13.7 billion in the event of a declared terrorism incident.
“ARPC’s retrocession program encourages the global insurance market to participate in providing terrorism cover for Australian-based assets, which protects the Commonwealth (Australian government) guarantee and Australian taxpayers,” said Christopher Wallace, ARPC chief executive. “ARPC achieved a slight reduction in pricing for the 2019 retrocession program. The price reduction, plus reinsurers’ appetite to participate, prompted ARPC to purchase an additional top layer of $250 million for 2019.”
Wallace and Michael Pennell, chief underwriting officer, met with almost 70 reinsurers in key global markets to negotiate the 2019 program.
“ARPC remains well positioned to be an effective provider of terrorism risk insurance that facilitates market participation, supports national resilience, and reduces potential losses arising from terrorism catastrophe,” Wallace said.