The Australian Reinsurance Pool Corporation says it has finalised a $3.475 billion retrocession program for this year, with the latest arrangements including a change to improve the organisation’s capital strength.

The program plus ARPC net assets and a $10 billion Commonwealth guarantee provides scheme capacity in the case of a declared terrorism event of just under $14 billion.

CEO Christopher Wallace and Chief Underwriting Officer Michael Pennell met online with almost 70 reinsurers in global markets to negotiate the program, which provides cover for commercial and eligible property assets.

“ARPC purchased an additional $25 million layer of reinsurance at the bottom of the program,” Dr Wallace said. “This reduced ARPC’s deductible from $250 million to $225 million and improved ARPC’s capital strength.”

The program renews on January 1 each year.