7 February 2020Insurance

ARPC’s 2020 retrocession programme renewed for 2020

Australia’s terrorism insurance scheme, Australian Reinsurance Pool Corporation, has renewed its retrocession reinsurance program for the 2020 calendar year. The A$3.45 billion retrocession reinsurance program, plus ARPC’s net assets and the A$10 billion Commonwealth guarantee, provides scheme capacity in the event of a declared terrorism incident, against commercial and eligible property assets of just under A$14 billion.

“ARPC’s retrocession program encourages the global insurance market to participate in providing terrorism cover for Australian-based assets, which protects the Commonwealth (Australian Government) guarantee and Australian taxpayers,” said Dr Christopher Wallace, ARPC chief executive.

“ARPC achieved a reduction in pricing for the 2020 retrocession program. The price reduction, plus reinsurers’ appetite to participate, prompted ARPC to extend the top layer to A$350 million for 2020.”

The A$3.45 billion retrocession program and ARPC net assets are the first layers of funding for claims in the event of a terrorism incident.

Dr Wallace and chief underwriting officer Michael Pennell met with almost 70 reinsurers in key global markets to negotiate the 2020 program.

“ARPC remains well positioned to be an effective provider of terrorism risk insurance that facilitates market participation, supports national resilience and reduces potential losses arising from terrorism catastrophe.” said Dr Wallace.

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

​​​​Argo Group to Sell Trident Public Risk Solutions to Paragon Insurance Holdings
US storms and global floods cause $3bn+ in economic cost during January
ILS Capital's reinsurer Prospero Re assigned financial strength rating by KBRA
HDI Group snaps up cyber specialist Perseus
Start-up bicycle insurer Laka announces $4.7m funding round
Insurtech Openly expands into Tennessee
Chubb’s CEO Greenberg reports positive momentum in 2019 results

Don't miss our insurtech email newsletter - sign up today

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
7 February 2020   Major hailstorms in Australia add to insurance industry payouts as wildfires persist.
Insurance
7 February 2020   Argo expects a pre-tax gain of $37 million from the transaction.