Pool Re, the mutual reinsurer that provides terrorism cover for commercial property in the UK, has purchased £1.8 billion of reinsurance coverage in the commercial market for the first time ever.
The three year single layer programme is led by Munich Re and brokered by Guy Carpenter. It mirrors the cover currently provided to Pool Re members, including chemical, biological, radioactive and nuclear risks.
Pool Re said that this placement further distances Her Majesty’s Treasury (HMT) and the UK tax payer from any potential liability, but importantly also protects scheme assets thereby increasing the sustainability of the pool.
Julian Enoizi, chief executive of Pool Re, said: “I am extremely pleased to announce the placement of Pool Re’s first reinsurance programme. The purchase of external reinsurance cover is one of our key initiatives to reinforce the Pool Re Scheme which will protect and increase the resilience of the members’ fund, diminishing the UK Government’s exposure and distancing the UK taxpayers from any potential liability.
“This programme provides the largest amount of cover ever secured by a national terrorism pool and is backed by excellent security. Today’s announcement is a key step in the evolution of Pool Re and in keeping with one of its founding objectives, allows the commercial market to once again provide terrorism insurance in the UK”.
Nick Frankland, chief executive officer of EMEA operations, Guy Carpenter, added: "We have been delighted to represent Pool Re in such an important step in its evolution. Combining our wealth of experience with Terror Pools around the world with their knowledge of the UK market, and utilising our proprietary model, we have together achieved a compelling outcome for UK. We are looking forward to working with the Pool Re team to realise their ongoing objectives in the future."
Munich Re, Pool Re, Guy Carpenter, Julian Enoizi, Nick Frankland, Europe, Reinsurance