The placement further distances Her Majesty’s Treasury (HMT) and thus, ultimately, the UK taxpayer from any potential liability. It also protects scheme assets, thereby increasing the sustainability of the pool and strengthening the UK’s terrorism resilience for future years.
The two-layer programme, brokered by Guy Carpenter and placed with a stable and secure panel of reinsurance companies (which includes Members of Pool Re as well as global re-insurers) led by Munich Re, mirrors the cover currently provided to Pool Re members and includes Chemical, Biological, Radioactive and Nuclear terrorism risk.
Steve Coates, chief underwriting officer at Pool Re, said, “This increased retrocession limit is not only evidence of Pool Re’s strategy to protect its stakeholders, but also to allow the market to write as much UK terrorism risk as they are able. We will continue to extend our protection in the future, within the boundaries of cost and counter-party security.”
James Nash, President International Division, at Guy Carpenter, said, “‘Guy Carpenter are delighted to have represented Pool Re in the purchase of this landmark limit that facilitates the returning of risk to the global market.’