The UK’s terrorism pool has bought reinsurance cover in the commercial market for the first time.

Pool Re’s three-year program, led by Munich Re and brokered by Guy Carpenter, provides £1.8 billion ($3.53 billion) of cover.

CEO Julian Enoizi says it reinforces the pool and reduces the Government’s exposure.

“This program provides the largest amount of cover ever secured by a national terrorism pool and is backed by excellent security.”

He says the deal “allows the commercial market to once again provide terrorism insurance in the UK”.

The Australian Reinsurance Pool Corporation recently reduced its reinsurance cover to $2.9 billion from $3.2 billion.

Pool Re was set up as a mutual insurer in 1993 in response to the IRA bombing campaign. Most UK insurers offering commercial property cover are members.