2017 full-year financial highlights:
• Shareholder equity increased to USD911.6 million (prior to the introduction of Prudential Financial, Inc. as a shareholder)
• Gross written premium of USD1.10 billion
• After-tax income increased to USD70.5 million
• Solvency ratio of 433%
• Administrative expense ratio 3.48%
Peak Reinsurance Company Limited (“Peak Re” or “the Company”) delivered solid and consistent earnings in 2017. The result is contributable by sustainable growth of gross written premium, a high quality investment portfolio providing strong returns and a competitive administrative expense ratio.
“Since our establishment in 2012, Peak Re has created value for shareholders and produced consistent profit from its first year of operations. Most importantly, in 2017, Peak Re’s shareholder equity increased by USD70.5 million to USD911.6 million (prior to the introduction of a new investor, Prudential Financial, Inc.), meaning we have generated USD261.6 million of shareholder equity over the past five years since founding,” said Franz Josef Hahn, Peak Re Chief Executive Officer.
He continued, “Despite 2017 being a challenging year for the global insurance and reinsurance industry, Peak Re continued to deliver strong growth with an after-tax income of USD70.5 million, driven by good investment returns, a high quality underwriting portfolio and comprehensive risk management approach. Furthermore, we continued to broaden and deepen our business scope with our clients driving successful renewals in the 2018 January and April seasons.“
In 2017, Peak Re’s gross written premium increased to USD1.10 billion as a result of successful renewals across all business lines. While 80% of Peak Re’s annual growth is driven by existing clients, the Company expanded its portfolio in EMEA, the Americas and Asia Pacific, where Peak Re is enjoying an impressive growth in its China market share.
In 2017, Peak Re’s investable assets increased to USD1.55 billion and its comprehensive investment return was 10.5%, as the investment portfolio continued to provide strong and sustainable long-term return. The Company’s solvency adequacy ratio remains strong at 433% while shareholders’ equity has grown to USD911.6 million. Peak Re reported a competitive administrative expense ratio of 3.48%
Peak Re continued its global market expansion with a subsidiary established in Zurich which was licensed to accept reinsurance business from January 2017. Demonstrating further market expansion in Asia, Peak Re was granted a license to carry out general reinsurance business by the Labuan Financial Services Authority (Labuan FSA) in Malaysia in July 2017. Meanwhile, the Company was authorised as a Life and General Reinsurer by the Monetary Authority of Singapore to carry out reinsurance business with effect from November 2017.
Peak Re was awarded “Asian Reinsurer of the Year” for the second consecutive year by Asian Banking and Finance magazine in 2017 and is now ranked 43 on A.M. Best’s annual ranking, by gross written premium.
On 13 February 2018, Peak Re announced that a wholly-owned subsidiary of U.S.-headquartered Prudential Financial, Inc. (“PFI”), has signed definitive agreements to purchase a minority stake in Peak Reinsurance Holdings Limited (“Peak Reinsurance Holdings”), the sole and direct shareholder of Peak Re via an issuance of new shares (“the Transaction”). In the run-up to the Transaction, the shares of Peak Reinsurance Holdings held by International Finance Corporation were purchased by Fosun International Limited (00656.HK) (together with its affiliates “Fosun”). The Transaction was completed in April 2018. Fosun and PFI now hold 86.9% and 13.1% of Peak Re via Peak Reinsurance Holdings, respectively.
About Peak Re
Peak Re is headquartered in Hong Kong with shareholder equity of USD911.6 million as of 31 December 2017. It is authorised by the Insurance Authority of Hong Kong and is rated “A-” by A.M. Best, a leading international insurance industry credit rating agency. Fosun International Limited (00656.HK) (“Fosun”) and Prudential Financial, Inc. (“PFI”) hold 86.9% and 13.1% of Peak Re via Peak Re Holdings, respectively. Peak Re offers reinsurance services covering a range of lines across Asia Pacific, EMEA and the Americas, tailor-making risk transfer and capital management solutions to best fit clients’ needs.
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