The International Group pool and General Excess of Loss (GXL) reinsurance contract structures for the 2017/18 policy year are set out in the diagram below.
The individual club retention and the attachment point for the pool remain unchanged at US $10 million.
The Lower Pool layer stretches from US $10 million to US $45 million, and the Upper Pool layer from US $45 million to US $80 million.
The attachment point on the Group GXL reinsurance programme has been increased to US $100 million from 20 February 2017.
The Collective Overspill reinsurance layer which attaches excess of the GXL limit adds a further US $1 billion of protection (US $2.1 billion-US $3.1 billion) Hydra pool/GXL reinsurance participation
Hydra reinsures 100% of the Lower Pool layer between US $30 million and US $45 million.
Hydra also reinsures 92.5% of the Upper Pool layer (US $45 million – US $80 million). The remaining 7.5% of exposure within this layer remains with the club incurring the claim.
The layer from US $80 million to US $100 million is reinsured 100% by Hydra. Hydra also reinsures 30% of the layer US $100 million to US $600 million. Private placements
The three 5% multi-year private placements cover the first and second layers of the GXL placement (US $1 billion excess of US $100 million).
The pool and GXL layer and participation structures for the separate Oil Pollution cover mirrors the main (P&I) placement up to the Oil Pollution cover limit (US $1 billion).
For Chartered Entries, there is a single combined P & I and Oil Pollution cover limit of US $350 million. The pool and GXL/Hydra/Private Placement structures under this cover replicate the main placement up to the cover limit.