(1) Section 2 of the Reinsurance (Acts of Terrorism) Act 1993 (reinsurance arrangements to which the Act applies) is amended as follows.

(2) In subsection (1) -

(a) omit "and" at the end of paragraph (a);

(b) after paragraph (b) insert "and

(c) any loss which falls within subsection (1A);".

(3) After subsection (1) insert -

"(1A) Loss falls within this subsection if -

(a) it results from interruption to business carried on in Great Britain, and

(b) the interruption results from or is consequential upon acts of terrorism."