The UK Government’s flood reinsurance pool is on course to begin operating in April as planned, after it officially became a statutory body and secured £1.29 billion ($2.75 billion) of cover from global reinsurers.

The statutory status gives Flood Re the authority to facilitate provision of affordable cover to at-risk homeowners.

It is now awaiting final authorisation from the Prudential Regulation Authority and the Financial Conduct Authority before it can accept policies.

“We are delighted the Government has now put into effect the legislation, agreed by Parliament, that gives Flood Re its statutory underpinning,” Flood Re CEO Brendan McCafferty said.

“Flood Re’s work with the insurance industry, regulators and others will continue.”

The pool is a collaboration between the insurance industry and the Government, aimed at providing affordable cover for up to 500,000 high-risk properties.

“Flood Re will for the first time ensure access to affordable flood insurance for people regardless of where they live,” Floods Minister Rory Stewart said.

Munich Re and Swiss Re are “significant” contributors to the £1.29 billion annual cover, which is the first tranche of reinsurance placed by broker Guy Carpenter.

A further £720 million ($1.54 billion) is currently being procured.

“We are delighted by the strong demand within the reinsurance market, which saw the program being significantly oversubscribed.” Mr McCafferty said. “This bodes well for phase two and means we are on course to provide protection up to the planned £2.1 billion ($4.48 billion) annual liability limit.”