News 25
Pool Re eyes first ILS deal
Pool Re is looking to issue insurancelinked
securities (ILS), having
exhausted traditional reinsurance
capacity, Pool Re CEO Julian Enoizi, told
Monte Carlo Today. In April 2018, it selected
GC Securities as its ILS advisor and placement
agent.
Pool Re members comprise the majority
of insurers and Lloyd’s syndicates which
offer commercial property insurance in the
UK. The ILS would cover property damage
terrorism and cyber terrorism.
Enoizi said Pool Re has exhausted the
available reinsurance capacity and is therefore
turning to the capital markets.
“We buy around 16 to 17 percent of
the global terrorism reinsurance capacity.
While we will continue to try to nudge up
the amount of reinsurance we buy every
year, there isn’t a whole lot more out there,”
he said.
During the Rendez-Vous, Enoizi wants to
further discuss the feasibility and potential
structure of the ILS issue.
Meanwhile, Pool Re is in the process of
extending the terrorism coverage it offers to
include non-damage business losses resulting
from acts of terrorism. Furthermore, it will
extend its cover to include material damage
and direct business interruption (BI) caused
by cyber terrorism from April 2018.
As part of this move, Pool Re extended its
retrocession programme at renewal to include
material damage and direct BI caused by acts
of terrorism using remote digital interference.
The three-layer programme matches the
cover for Pool Re member insurers, with cyber
terrorism now included along with chemical,
biological, radioactive and nuclear risks.
“Our strategy has always been to put as
much of this risk back into the private market
as possible, to de-risk the government as
much as possible and to normalise the market
over time as a result,” Enoizi concluded. l
Julian Enoizi
Pool Re has
exhausted the available
reinsurance
capacity.
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