Terrorism reinsurer Pool Re has completed the placement of its second ILS cat bond, which was issued through UK domiciled special-purpose vehicle, Baltic PCC Ltd. The bond increased in size to £100m from the first bond of £75m issued in 2019. The risk spread was reduced to 5.5% compared to 5.9% under the 2019 issue.

Julian Enoizi, chief executive officer of Pool Re, said: “This notable achievement demonstrates the continuing innovation and determination of Pool Re in returning a larger part of the risk to the commercial markets and protecting the UK taxpayer consistent with our commitment given as part of our five year review.

“I am also particularly pleased that we can demonstrate again the collaborative spirit that exists between Pool Re and HM Treasury by supporting the journey towards enhancing the UK’s ILS framework. This will certainly strengthen our industry’s contribution to the UK economy and enhance London’s position in a global industry.”

John Glen, economic secretary to the Treasury, added: “It’s great to see Pool Re successfully renew and increase its second Insurance Linked Securities for terrorism risk - ensuring taxpayers are further insulated from the financial costs of terrorist acts, with private markets committing to cover a greater share.”

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