Your house is insured for £300,000 and you pay £500 for your household insurance, which mainly insures your house against fire events. On average, the insurer expects to achieve a loss ratio of 60% on its portfolio of houses. Your insurance company goes to the reinsurer to buy facultative reinsurance for your house (an unusual circumstance) and purchases a reinsurance policy with a deductible of

£90,000. Using the standard Swiss Re curve for the relevant occupancy, what is the expected cost to the reinsurer?