Baltic PCC Limited

UK government backed mutual terrorism reinsurance firm Pool Re has upsized its new Baltic PCC Limited (Series 2022-1) terror catastrophe bond to £100 million in size, helping it to increase the size of its retrocession tower to UK £2.5 billion at the renewal, up from £2.475 billion a year ago.

Pool Re, the UK government-supported mutual terrorism reinsurance provider, is back in the catastrophe bond market and seeking a UK £75 million (approx. US $102m) renewal of its landmark terror catastrophe bond, with a Baltic PCC Limited (Series 2022-1) cat bond issuance.

UK government backed mutual terrorism reinsurance firm Pool Re has secured another increase in size to its retrocession program, lifting it to almost US $3.5 billion at the latest renewal, but still insurance-linked securities (ILS) capacity remains limited to its previous catastrophe bond.

UK government backed mutual terrorism reinsurance firm Pool Re has secured its largest retrocession program yet, buying a UK £2.4 billion (US $3 billion plus) aggregate excess of loss tower from private markets.

Following its successful sponsorship of the first terrorism risk catastrophe bond earlier this year, Pool Re has been sharing its experience with other aggregators of terrorism insurance risk to help them understand the option to tap into capital markets appetite.

Terrorism insurance and reinsurance risks are seen by investors as a useful but complex diversification opportunity for their ILS funds, hot topics discussed at the annual IFTRIP conference suggested.

The United States Treasury continues to explore its options for terrorism risk sharing with private markets, with terrorism catastrophe bonds once again under discussion at committee level.

UK government backed mutual terrorism reinsurance firm Pool Re has successfully secured a £40 million (US $50m) layer of additional retrocession to cover it against non-damage business interruption resulting from terror attacks.

Pool Re, the UK government backed mutual terrorism reinsurer, is back in the market to source an additional up to £50 million (US $64m) of retrocessional reinsurance protection to cover the new non-damage business interruption (NDBI) it assumes.

The introduction of terrorism risk to the insurance-linked securities (ILS) market remains in its infancy, but the very supportive response from the investor base regarding Pool Re’s Baltic PCC Limited, the world’s first terror catastrophe bond, suggests the peril will be accepted.