By Ryan Hewlett

March 3 - (The Insurer) - UK terrorism mutual Pool Re has completed the placement of a new retrocession program with a record limit of 2.75 billion pounds ($3.47 billion), confirming this publication’s exclusive reporting from February.

The March 1 renewing placement is structured as an aggregate excess of loss cover. It provides 2.75 billion pounds of cover, up from the 2.4 billion pounds secured in 2022 under a three-year deal.

The placement, brokered by Guy Carpenter, featured participation from more than 60 international reinsurers, up from 52 previously. Hannover Re and the Fidelis Partnership were among those providing pricing guidance.

Jonathan Gray, Pool Re’s CUO, said the increased participation reflects confidence in the reinsurer’s approach and enhances its ability to manage risk effectively.

Pool Re, which benefits from an unlimited state guarantee, said in a statement on Monday that the expanded program shifts more financial risk arising from acts of terrorism away from the UK taxpayer and back to the private market, while keeping terrorism insurance accessible and affordable for businesses.

It provides reinsurance for property damage resulting from acts of terrorism certified by the UK government, covering both conventional and nuclear, biological, chemical and radiological attacks, as well as those from a limited cyber extension.

The Insurer exclusively trailed details of the XoL retro program in early February.

As previously reported, the 2025 program features a new ground-up gross retention of 1.0 billion pounds, with a first layer of 1.0 billion pounds excess 1.0 billion pounds. Above this sits a second layer totalling 1.75 billion excess 2.0 billion pounds. This marks the most significant change to the structure since Pool Re first purchased reinsurance in 2015.

Tom Clementi, Pool Re’s CEO, added: “The expanded program aligns with Pool Re’s strategy to transfer UK terrorism risk to the market, further reducing the taxpayer’s exposure to potential losses. This remains a key pillar of our strategy and we are delighted with this successful outcome.”

Pool Re, an arm’s length body of HM Treasury, currently underpins around 90% of the commercial property terrorism cover in the UK, protecting more than 2.3 trillion pounds of assets.

Including other assets such as member retentions, around 7.3 billion pounds of central reserves and the 2.75 billion pound XoL policy, Pool Re has built a circa 12 billion pound buffer to protect the UK taxpayer before the government guarantee is engaged.