About - Pool Reinsurance Company LTD

Pool Re’s purpose is to enable the UK insurance market to underwrite terrorism risk to commercial property at risk-reflective rates. Central to the proposition is the integration of Pool Re’s cover with the underlying property policy which ensures that there is no gap in the cover provided.

Pool Re is a critical component of both the financial and governmental infrastructure

£2.2tn of liabilities insured
by Pool Re.

£6.6bn fund has been built up by Pool Re to meet potential claims.

£635m has been paid out in claims, equivalent to £1.25bn adjusted for inflation.

£990m of premiums have been paid to HMT Treasury, though Pool Re can draw on this amount should government funds be required.

Less than 15% of SMEs are estimated to have terrorism insurance.

90% of the terrorism insurance market is estimated to be reinsured by Pool Re, the rest is kept in the private sector.

£2.3bn of reinsurance is purchased by Pool Re from private sector reinsurers.

£75m raised from external investors through the placement of an insurance linked security bond.

Pool Re’s purpose is to enable the UK insurance market to offer terrorism cover to any commercial property that requires it. Central to the proposition is the integration of Pool Re’s cover with the underlying property policy which ensures that there is no gap in the cover provided.

Pool Re was designed to insulate the taxpayer from financial losses arising from acts of terrorism. It has achieved this effectively, to date paying £635m in respect of 13 claims arising from certified terrorism events in the UK since our establishment. It has never called on the Government’s guarantee.

By providing foundational stability at a reinsurance level, Pool Re has created an environment for the commercial market to re-establish itself, after the market failure in 1992. This stability creates and sustains access, liquidity and confidence to generate the conditions for the private market to gradually write a growing portion of terrorism risk, whilst making a steady profit margin and minimising the possibility of another market failure.

By investing in research partnerships and in-house expertise to support innovative risk modelling, risk management, and education, Pool Re supports the commercial market’s understanding of terrorism risk, and its ability to offer broad and economically viable protection to all UK businesses.