Investors bet on UK terrorist attacks in cat bond first

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Investors bet on UK terrorist attacks in cat bond first

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The scene in London's Tavistock Square, after a bomb ripped through a Number 30 double decker bus. | PA/PA Archive/PA Images

Pool Re, a government-backed reinsurer, has priced the first ever catastrophe bond to cover terrorist attacks specifically, allowing investors to receive a return from providing insurance cover. Those on the deal claim it shows the depth of the UK’s financial expertise in the insurance linked securities (ILS) market.

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