The Australian Reinsurance Pool Corporation (ARPC) has renewed its retrocession reinsurance program for this year at $3.45 billion, up slightly from $3.315 billion last year.

The renewed program plus ARPC’s net assets and the $10 billion Commonwealth guarantee will provide cover for commercial assets of nearly $14 billion in the event of a declared terrorism incident.

ARPC CEO Christopher Wallace and Chief Underwriting Officer Michael Pennell met with almost 70 reinsurers in key global markets to negotiate the program.

“ARPC achieved a reduction in pricing for the 2020 retrocession program,” Dr Wallace said.

“The price reduction, plus reinsurers’ appetite to participate, prompted ARPC to extend the top layer to $350 million for [this year].”