Bermuda re/insurers now back nearly a third of terrorism risk in the UK by supplying retrocession to Pool Re, according to data from the Association of Bermuda Insurers and Reinsurers (ABIR).
ABIR reported that its member companies now supply 32%, or £770 million of terrorism retrocession capacity to the UK’s terrorism and systemic risk reinsurer.
“Helping the world to manage large and complex hazards, such as terrorism, cyber and climate risk is our business,” said John Huff, President and Chief Executive Officer of ABIR.
“Bermuda re/insurers play a leading role in protecting British taxpayers from terrorism-related economic losses, providing nearly one-third of Pool Re’s capacity,” he continued.
“With our industry-leading talent base, the Bermuda market has the risk analytics skillset and aggregation capabilities not only to insure terrorism risk, but also to play a role in mitigation.”
Pool Re, which operates with a government guarantee, for which it pays a fee, exists to insulate British taxpayers from terrorism losses and to provide the market support to enable a commercial terrorism insurance market to grow.
Julian Enoizi, Pool Re’s Outgoing CEO, recently thanked Bermuda re/insurers for their support in his speech at the Bermuda Risk Summit in March.
“Your participation in the £2.5 billion that we managed to put into the re/insurance marketplace is £770 million, so a significant share of this journey,” Enoizi said. “You have come and put capital at risk in London to protect the UK taxpayer from loss.”
Pool Re recently completed the placement of its expanded £2.5 billion retrocession programme, led by Munich Re, and with Hannover Re and Fidelis also among those providing significant capacity.
The retro tower was grown from £2.475 billion last year thanks to Pool Re’s new Baltic PCC 2022-1 catastrophe bond.
