Reinsurance News

Pool Re sponsors second catastrophe bond

17th February 2022 - Author: Matt Sheehan

UK government-backed terrorism reinsurer Pool Re has returned to the capital markets to renew its Baltic terrorism cat bond in a £75 million deal.

Pool Re logoThe Baltic PCC Limited (Series 2022-1) cat bond issuance will follow on from Pool Re’s first cat bond issuance in 2019, which matures at the end of this month.

Our ILS-focused sister publication, Artemis, was the first to report on this new deal being marketed to investors, and full details of the transaction can be found in the Artemis Deal Directory.

The issuance marks only the second pure cat bond in the Directory, with Pool Re again looking to secure retrocessional reinsurance protection against terror losses occurring in England, Scotland and Wales.

Artemis reports that Pool Re is again seeking a three-year coverage period, with coverage provided on an indemnity trigger and annual aggregate basis to protect against both major attacks and an accumulation of smaller events.

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Sources have detailed that special purpose reinsurance vehicle Baltic PCC Limited will issue a single tranche of Series 2022-1 notes, on behalf of its second protected cell, with the target being to sell at least UK £75 million of notes to cat bond investors.

As with the earlier 2019 bond, the notes will attach at £500 million of losses to Pool Re and cover a share of a layer up to exhaustion at £700 million.

The renewed catastrophe bond will form part of Pool Re’s £2.475 billion excess of £400 million retro reinsurance tower, which the company last renewed in February 2021.

For further details of Pool Re’s two Baltic catastrophe bonds, and to read about every other catastrophe bond issued since 1996, readers should visit the Artemis Deal Directory.

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