Pool Re selects Aon Securities and Howden Capital Markets as ILS advisors

UK terrorism mutual Pool Re has appointed Aon Securities and Howden Capital Markets and Advisory as its ILS advisors.

Pool Re has previously used catastrophe bonds as part of its reinsurance protection, securing an aggregate of £175mn of ILS capacity from UK-domiciled special purpose vehicle Baltic PCC.

The £75mn Baltic PCC (Series 2019) issuance was the market’s first terrorism catastrophe bond and one of the first transactions to be issued under the UK’s ILS regulatory system.

Pool Re completed the placement of its second transaction in 2022, with the cat bond increasing in size to £100mn.

The bond provides Pool Re with cover against conventional terror losses that occur in England, Scotland and Wales, with the protection designed to sit within the mutual’s main excess of loss property tower.

Pool Re CEO Tom Clementi said: “Pool Re considers all forms of risk transfer capacity in its reinsurance program and has appointed the advisors to assist in the evaluation of potential ILS and similar solutions for the ultimate benefit of protecting UK taxpayers.”

Last year Pool Re again renewed its reinsurance broking contract with Guy Carpenter following a competitive tender process, with the Marsh McLennan-owned intermediary handed a three-year mandate with an option to run to five.

Earlier this year Pool Re secured member backing to move the mutual’s reinsurance scheme to a catastrophe treaty model. The change will take effect in April 2025.