ARPC finalises 2025 terrorism retrocession program
21 February 2025
Australia’s terrorism reinsurance pool, administered by ARPC, has successfully finalised its retrocession* program for the 2025 calendar year. A smaller limit was purchased with an increased deductible to reflect ARPC’s current view of risk for the portfolio, as well as ARPC’s view of value for money in the risk transfer.
The retrocession, of $2.15 billion, plus ARPC’s net assets and the $10 billion Commonwealth guarantee, provides approximately $14 billion in pool capacity in response to a declared terrorism incident affecting commercial and other eligible property assets.
ARPC Chief Executive, Dr Christopher Wallace said, “We are pleased to have completed our 2025 retrocession program, which is key to maintaining our strong position in the global terrorism reinsurance market. This program enhances our ability to leverage market appetite and lock in cost effective reinsurance rates through a multi-year agreement.”
“ARPC’s retrocession program includes Australian and international reinsurer participants which together provide terrorism cover for Australian-based property assets.”
“The program allows ARPC to provide protection against terrorism-related risks, while ensuring financial stability and resilience for its cedants.”
ARPC’s net assets which fund the $350 million program deductible, plus the approximately $2.15 billion retrocession program, comprise the first levels of funding for claims in response to a declared terrorism incident.
ARPC met with more than 40 reinsurers in person or online in key global markets to arrange the 2025 program.
For media inquiries, please contact Alexander Drake, Head of Public Affairs and Communications on (02) 8223-6777 or [email protected].
*About retrocession
Retrocession is where a reinsurer like ARPC purchases its own reinsurance. This means that very large risks are spread across several reinsurers.