It’s looking like a huge quarter for Pool Re.
Last month Britain’s state-backed terrorism reinsurer saw not only the legislative change it needed to be able to cover non-damage business interruption but also the launch of the world’s first terrorism catastrophe bond.
Now it has completed placement of its £2.3 billion retrocession programme, which was described as “the largest terrorism risk placement ever.” Featuring more than 50 international reinsurers, the programme is led by Munich Re and signifies an increase from last year’s £2.1 billion.
In addition, the 2019 amount includes £75 million provided under the pioneering cat bond.
“The retrocession wraps around the bond to form a notional layer of £200 million in excess of £500 million,” explained the mutual. “The risk was modelled using Pool Re’s own model, developed in collaboration with Cranfield University and Guy Carpenter.
“For the first time, it fully deployed computational fluid dynamics to assess blast risk which considers how blasts move over, around, and between buildings.”
Citing the improved modelling technology, chief underwriting officer Steve Coates said they have been able to increase appetite for a share of Pool Re’s assumed risk.
Meanwhile chief executive Julian Enoizi has offered words of gratitude.
The Pool Re CEO stated: “We are delighted with the ongoing support we have received from our continuing reinsurers and pleased to welcome new carriers to the risk, and I thank Guy Carpenter for their efforts in completing this record-breaking placement.
“It provides resilience for UK businesses, while moving the taxpayer even further away from their implicit coverage of extreme commercial losses from terrorism.”