The British government-backed terrorism reinsurer Pool Re has completed a £2.3bn ($3.1bn) retrocession placement, which was led by Munich Re and saw involvement of over 50 international reinsurers.

Vaild for a period of three years, the programmeis said to be the largest reinsurance deals across the world and the largest terrorism risk placement so far.

Structured as an aggregate excess of loss treaty, the retrocession will attach in case Pool Re’s losses surpass £500m ($664.4m) individually or in aggregate in any year, after member insurers’ combined retention of £250m ($332.2m) per event or £410m ($544.8m) in aggregate is fulfilled.

The retrocession provides coverages for property damage against nuclear, biological, chemical and radiological attacks,cyber-triggered terrorist losses, and conventional terrorist activities.

Pool Re stated that the £2.3bn includes £75m of coverage provided under its recent terrorism catastrophe bond. The retrocession ‘wraps around almost the bond’ to form a notional layer of £200m in excess of £500m.

The risk was modelled using Pool Re’s own model, which the company developed in partnership with Cranfield University and Guy Carpenter.

Pool Re CEO Julian Enoizi said: “We are delighted with the ongoing support we have received from our continuing reinsurers, and pleased to welcome new carriers to the risk.

“I thank Guy Carpenter for their efforts in completing this record-breaking placement. It provides resilience for UK businesses, while moving the taxpayer even further away from their implicit coverage of extreme commercial losses from terrorism.”

Pool Re chief underwriting officer Steve Coates said: “As our modelling technology has improved, we have been able to increase appetite for a share of Pool Re’s assumed risk.

“We will continue to look for increased retrocession and capital markets capacity to shift even more of that risk to the private sector, provided of course the capacity is of acceptable security and can be written on a long-term basis.”