Pool Re shows pounds 140m City bomb shortfall: Terrorism reinsurer not yet prepared to call on Government for funds
Saturday 23 April 1994
Despite this shortfall in its first year of operation, Pool Re sees no need yet to call on the Government to make good the deficit. At the inception of Pool Re in December 1992, the Government agreed to act as 'reinsurer of last resort' to ensure businesses would still be able to obtain insurance cover against terrorist attack. Commercial reinsurers abandoned the market after the first City bombing, of St Mary Axe, in April 1992.
Keith Loney, Pool Re's company secretary, says the company will call on the Government only if it runs out of money. Since most of the pounds 360m claims on Pool Re have still to be settled, this threat is some way off.
According to the company's first annual report yesterday, the pounds 47.6m of claims paid last year were comfortably covered by premiums of pounds 222m.
Pool Re will be able to use premiums collected in this and future years, together with investment income, to pay outstanding claims. Another large and costly terrorist attack would make a call on the Government much more likely.
Mr Loney says Pool Re does not believe it is necessary to raise premium rates again. After the Bishopsgate attack, the Government insisted on sharp increases. Mr Loney says the rating review is continuing.
The total insured cost of the Bishopsgate bomb is estimated at about pounds 700m. However, nearly half of this falls on other insurers.
Some did not have reinsurance cover while others were still protected by the tail-end of reinsurance contracts arranged before the St Mary Axe bomb.
Pool Re is a mutual owned by its 217 members, including 88 Lloyd's syndicates. Of 129 company members, 29 are incorporated outside the UK.
The pounds 222m premium income is much less than the pounds 350m-a-year envisaged for Pool Re. Although businesses have mostly taken out terrorism insurance in London and other metropolitan areas, the take- up in provincial areas has been more modest.
Harry Potter actor suffered 'severe flu-like symptoms' on a flight from London to Orlando
First full-length look is finally here
World cities ranked in terms of safety, food security and 'liveability'
- 1 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 2 The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Baldness could soon be treated using stem cells, scientists hope
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Sex abuse inquiry: 'Victims receive death threats' after MPs release names online
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Teenager brandishing fake gun taken down by police after demanding airtime on Netherlands' NOS TV station
The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...