Introduction to Pool Re’s Latest Catastrophe Bond
Pool Re, a prominent UK-based entity specializing in terrorism reinsurance, has achieved a significant milestone with the successful launch of its third catastrophe bond, Baltic PCC Limited (Series 2025-1). This bond offers Pool Re an impressive £100 million in collateralized retrocession protection.
Commitment to Reducing Taxpayer Burden
This latest issuance underscores Pool Re’s steadfast dedication to alleviating the financial impact on UK taxpayers by fostering greater private sector risk-sharing in tackling terrorism-related incidents.
CEO’s Perspective
Tom Clementi, the Chief Executive Officer of Pool Re, expressed, “Our objective is to mitigate the fiscal load on UK taxpayers and enhance the country’s economic resilience. We are thrilled to announce the successful closure of our third Cat Bond issuance.”
Encouraging Private-Sector Participation
Pool Re continues to lead by example, elevating awareness and stimulating the advancement of terrorism-centric Insurance-Linked Securities (ILS) solutions. This issuance witnessed a remarkable influx of global institutional investors, reflecting increased interest and trust in the venture.
The Role of Moody’s
Expressing gratitude, Clementi acknowledged Moody’s for serving as the independent risk modeler for this placement. Their insights provided investors with a detailed risk assessment using the sophisticated Moody’s RMS terrorism model.
Transaction Details
The £100 million issuance, facilitated through the UK-based special purpose vehicle Baltic PCC Limited, offers collateralized retrocession protection. It replaces the maturing Series 2022-1 notes, with the new 2025-1 Notes priced competitively at 5.90%. This transaction signifies a notable expansion in investor participation, drawing a broader spectrum of global institutional capital.
Benefits for Pool Re
Pool Re stands to gain substantial occurrence protection against major terror attacks and frequency protection for a series of smaller incidents across England, Scotland, and Wales.
Comments from Aon Securities
Jordan Brown, Managing Director of Aon Securities, remarked, “Aon Securities is privileged to have collaborated with Pool Re on this successful transaction. The positive response from the global investor base highlights Pool Re’s credibility and mission to transition more risk to the private sector.”
Insights from Howden Capital Markets & Advisory
Philipp Kusche, Chairman of Howden Capital Markets & Advisory (HCMA) Europe and Co-Head of Global ILS, added, “HCMA is proud to assist Pool Re in re-entering the Cat Bond market. A defining characteristic of this issuance was Pool Re’s comprehensive marketing initiatives, which successfully attracted a diverse panel of new investors.”
Facilitating Future Issuances
These educational campaigns not only ensured the success of this Cat Bond but also set the stage for potential future issuances, expanding Pool Re’s access to a stable and dynamic capital base.
Key Partners
Aon Securities Limited and Howden Capital Markets & Advisory (HCMA) acted as Structuring Agents and Joint Bookrunners for the transaction. Legal counsel was provided by Clifford Chance.
For more comprehensive details on this bond and numerous other transactions, visit our sister publication’s extensive Deal Directory at Artemis, which focuses on insurance-linked securities (ILS).
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