UK terrorism reinsurer Pool Re has welcomed a three year exemption from the Competition Act 1998 granted by the Office of Fair Trading (OFT).
Following a period of public consultation, the OFT decided that the benefits of Pool Re outweighed the anti-competitive effects of the terrorism reinsurer.
The rules regarding Pool Re were found to prevent, restrict or distort competition under the Chapter 1 prohibition of the Act.
Pool Re chief executive Steve Atkins said: "We welcome the fact that the OFT has found in the way that it has, in line with our original submission in March 2003."
The OFT said the grounds for exemption were likely to continue after the three years, unless there was a significant change in market circumstances.
The Pool Re rules that come under Chapter 1 prohibition are: