Pool Re has completed placement of its retrocession programme with more than 50 international reinsurers.

Providing £2.5bn of cover, increased from £2.475bn, the placement is led by Munich Re with Hannover Re and Fidelis providing significant capacity, among others.

The retrocession covers property damage arising from CBRN, cyber-triggered terrorist losses, and conventional terrorist acts.

The three-year retrocession agreement is structured as an aggregate excess of loss treaty which will respond if Pool Re’s losses, individually or in aggregate, exceed £400m in any year.

Steve Coates, Pool Re’s chief underwriting officer, said: “We are delighted to achieve an increase in this important retrocession placement which puts further distance between the taxpayer and the cost of terrorism losses. We have received broad support from reinsurers around the world who appreciate our strong focus on risk management, supported by credible, advanced modelling tools. This has all contributed to unaltered pricing on a risk adjusted basis.”

Julian Enoizi (pictured), Pool Re chief executive added: “We can be rightly proud of an excellent outcome for this placement. Pool Re’s extended retrocession placement is the largest terrorism reinsurance programme in the world and we have consistently sought to increase the amount we place as part of our strategy to return UK terrorism risk to commercial markets. Our ILS bond, where we are also seeking increased levels of indemnity, is being finalised and we hope to be able to announce its completion in the coming days.”

To maximise reinsurer participation and pricing, the limit and attachment of layers has been amended to include a new layer 4 of £25m, providing room for growth.

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