Government-inspired mutual company authorised to transact reinsurance for property and business interruption and related classes. By agreements with the government Pool Re provides its members (major insurance companies and Lloyd’s) with reinsurance cover for losses from commercial property damage in Great Britain caused by acts of terrorism. Members offer ‘defined’ terrorism cover where they insure the property against fire and explosion and they reinsure their terrorism portfolio with Pool Re. Pool Re is a party to a retrocession with HM Treasury who will indemnify Pool Re against its reinsurance liabilities to members subject to exceptions and deductions for expenses. In 2003 the market for terrorism became fully competitive, rates previously set by Pool Re having been lifted with wider terrorism cover, i.e. all risks’, also becoming available. See TERRORISM; TERRORISM COVER.