Clifford Chance

Clifford Chance advises Pool Re on placing the world’s first-ever terrorism cat bond

Leading international law firm Clifford Chance has advised Pool Re, Britain’s state-backed terrorism reinsurer, on its placement of a GBP £75 million catastrophe bond. Issued through a special-purpose vehicle, Baltic PCC Ltd., the bond is the first-ever insurance-linked securities (ILS) contract to cover terrorism risk exclusively, and only the second cat bond to be issued under the UK’s new regulatory system for ILS.

The bond will assist our client Pool Re by bringing new sources of capital to the terrorism risk market and moving UK taxpayers even further from the risks which Pool Re mutualises on their behalf.

Speaking on the transaction, insurance partner Katherine Coates comments: “We were delighted to advise Pool Re on this ground-breaking transaction, leveraging our extensive UK ILS expertise to date and strong working relationship with UK regulators, to ensure a positive outcome for all parties. The deal is another strong endorsement of the UK’s new ILS regime and closing it would not have been possible without the effective support of the PRA and FCA.”

The team comprised Katherine Coates, alongside partner Will Winterton and senior associate Tessa Crook in finance, capital markets partner Per Chilstrom, tax partner Chris Davies with support from associates Cameron Dwyer, Arielle Littles, Fergus Grady and Tracy Poon.