Pool Re expands retrocession programme to £2.75bn 

Government-backed reinsurer increases terrorism risk cover, shifting financial exposure from taxpayers to private insurers. 

Pool Re, the UK government-backed terrorism reinsurer, has expanded its retrocession programme, securing £2.75bn of cover. This marks an increase from the previous £2.4bn, with over 60 international reinsurers participating in the placement. 

The deal, brokered by Guy Carpenter, includes Hannover Re and The Fidelis Partnership among those providing pricing guidance 

 The expanded programme moves more financial risk from acts of terrorism away from UK taxpayers and back to private insurers, while ensuring that terrorism insurance remains accessible and affordable for businesses. 

The coverage includes property damage from government-certified acts of terrorism, including nuclear, biological, chemical, and radiological (CBRN) attacks. A limited cyber extension is also included. 

Jonathan Gray, chief underwriting officer at Pool Re, said, “We are pleased with the strong support from reinsurers, with many existing markets increasing their capacity and new partners joining us. This increased participation shows confidence in our approach and helps us manage risk effectively. We also value our continued collaboration with Guy Carpenter.” 

Tom Clementi, CEO of Pool Re, emphasised the importance of the placement, stating, “The expanded programme aligns with Pool Re’s strategy to transfer UK terrorism risk to the market, further reducing the taxpayer’s exposure. This remains a key part of our strategy, and we are delighted with the result.” 

Paul Moody, CEO of Guy Carpenter UK, said, “Guy Carpenter is proud to have secured another successful renewal for Pool Re. Securing £2.75bn of capacity is a significant milestone, and we thank all of Pool Re’s reinsurers for their support.” 

Image credit: © alice-photo via Canva 

Josie Geistfeld Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk