Pool Re, the UK terrorism reinsurance provider, completed its third catastrophe bond placement—Baltic PCC Limited (Series 2025-1).
The bond offers £100 mn in collateralised retrocession protection and replaces the maturing Baltic PCC Limited (Series 2022-1).
The 2025-1 Notes are priced at 5.90%. Compared to prior issuances, this transaction saw a larger and more diverse group of institutional investors. It provides Pool Re with occurrence protection for large-scale attacks and frequency protection for smaller events across England, Scotland, and Wales.
This issuance increases Pool Re’s use of private capital and reduces reliance on public funding. The reinsurer continues its approach to broaden participation in the UK terrorism market.
Tom Clementi, CEO of Pool Re, stated that expanding private-sector involvement helps limit the financial exposure of UK taxpayers. He also noted the growth of terrorism-focused ILS solutions and thanked Moody’s for its independent risk modelling using the latest RMS terrorism model.
We are committed to reducing the financial burden on UK taxpayers and strengthening national economic resilience through increased private-sector participation in the UK terrorism market. As such, we are delighted to have successfully closed our third Cat Bond issuance.
Tom Clementi, Chief Executive Officer of Pool Re
“At Pool Re, we continue to lead the way in raising awareness and encouraging the development of terrorism-focused ILS solutions, and we are pleased to see a record number of global institutional investors participating in this transaction. We are also grateful to Moody’s, as the independent risk modeller on this placement, for providing investors with a comprehensive view of risk using the latest Moody’s RMS terrorism model,” Tom Clementi said.
Aon Securities Limited and Howden Capital Markets & Advisory (HCMA) acted as joint structuring agents. Jordan Brown, Managing Director at Aon Securities, said the strong investor response validates Pool Re’s strategy. He highlighted the addition of new investors and the increased access to stable capital.
Aon Securities is honoured to have partnered with Pool Re in bringing this successful transaction to the ILS market.
Jordan Brown, Managing Director of Aon Securities
“We are delighted with the response from the global investor base which is a testament to Pool Re and their team; new investors participated in the offering for the first time, expanding Pool Re’s access to a stable and diverse source of capital and to align with its mission of ceding more risk to the private sector,” Jordan Brown commented.
Philipp Kusche, Chairman of HCMA Europe, pointed to Pool Re’s extensive marketing campaign. He said the investor education efforts helped expand the investor base and support future placements.
