Baltic PCC Limited

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.

The issuance of the world’s first terrorism catastrophe bond by UK government-backed mutual terrorism reinsurance facility, Pool Re, is the latest step in its journey of trying to normalise the market through an increased understanding of the risk, according to its Chief Executive Officer (CEO), Julian Enoizi.

Pool Re, the UK government backed mutual terrorism reinsurer, has announced the completion of its £2.3 billion retrocession programme, led by reinsurance giant Munich Re.

The recently completed £75 million Baltic PCC Limited (Series 2019) terrorism catastrophe bond, which was sponsored by Pool Re, the UK government-backed mutual terrorism reinsurance facility, achieved a number of innovative firsts.

The Bermuda Stock Exchange (BSX) has become the listing home for notes issued under a UK domiciled catastrophe bond structure for the first time, as the £75 million of notes issued for Pool Re’s first terrorism cat bond find a home there.

Pool Re, the UK government-backed mutual terrorism reinsurance facility, has now successfully completed the issuance of its first terrorism risk catastrophe bond, the £75 million ($97m) Baltic PCC Limited (Series 2019) with the placement said to have been oversubscribed thanks to ILS investor support.

The first standalone terrorism risk catastrophe bond to hit the market, a £75 million Baltic PCC Limited (Series 2019) transaction sponsored by UK government-backed mutual terrorism reinsurance facility Pool Re, has now been priced at the top-end of its initial spread guidance.

Pool Re, the UK government-backed mutual terrorism reinsurance facility, is bringing the first standalone terrorism risk catastrophe bond to market to tap the capital markets for retrocession, in a £75 million ($97m) Baltic PCC Limited (Series 2019) transaction.