- Continuous substantial growth despite challenging environment
- Maintains unmatched claim settlement record
- Makes history by launching Asia’s first sidecar
Peak Reinsurance Company Limited (“Peak Re” or “the Company”), a Hong Kong-based global reinsurer, is pleased to report the sixth consecutive year of stable growth in 2018 despite a challenging environment.
Financial Highlights in 2018:
- Gross premium income: US$1.38 billion
- Total assets: US$3.75 billion
- Net profit: US$19.5 million
- Shareholder equity: US$965.5m
- Solvency adequacy ratio: 432%
- Combined ratio: 98.3%
- Total investment return: 2.7%
- Management expense ratio: 3.56%
“We are extremely proud that after six years of operations, we have successfully established a strong footing in the industry as a significant global player,” said Franz Josef Hahn, Chief Executive Officer of Peak Re.
“2018 is a defining year for Peak Re,” said Mr. Hahn. “In spite of the multiple severe natural catastrophes, including Japan’s Jebi and Trami and two significant hurricanes in North America — Florence and Michael — and wildfires in California, Peak Re managed to achieve remarkable results.”
The Company’s net profit reached US$19.5 million with a technical combined ratio of 98.3%, reflecting a stable growth throughout one of the costliest years for the industry.
It settled more than 90% of claims in less than five days, which is a record that is unmatched in the industry.
Continuous growth in key markets
In 2018, Peak Re continued to expand its network of services following clients’ needs. The Company completed its first full year of business in India, with additional support with Hong Kong’s signing of a double taxation agreement with India, which allows the Company to write business from Hong Kong cost-efficiently on its one-underwriting platform.
China remains one of the key markets for Peak Re. During the reporting time, the Company shored up its business strategy and underwriting policies for mainland China, which led to a substantial growth of its business in the region. In 2018, the China Banking and Insurance Regulatory Commission and Hong Kong’s Insurance Authority reached an agreement to give equivalent status to reinsurers in Hong Kong, which will also give fresh impetus to Peak Re’s business in China.
Southeast Asia is core to Peak Re’s mission and vision of helping to expand insurance coverage to Asia’s emerging middle class. Peak Re operates in the region through its branch in Labuan and as an authorised reinsurer in Singapore, offering a single platform with underwriting activities centralised through the Hong Kong head office and supported by its top class technology. The Company also expanded its Asia footprint by establishing a representative office in Japan in 2018.
Made history by launching Asia’s first sidecar
Peak Re launched the first reinsurance sidecar transaction in Asia, in December 2018, in line with the Company’s mission to modernise reinsurance while supporting growth in Asia Pacific and beyond. The transaction successfully raised US$75 million of additional capital from a group of high-quality global investors, representing an important milestone in the Hong Kong and Asian (re)insurance market.
“At Peak Re, we have a clear purpose: to support the needs of communities and emerging middle class society through meeting reinsurance needs in Asia and around the globe. With this purpose, supported by our people who are collectively entrepreneurial and courageous, agile and with deep insights, we’re well positioned to capture the great potential and leverage the positive momentum in our key markets,” said Mr. Hahn.
Peak Reinsurance was awarded “Asian Reinsurer of the Year” for the third consecutive year by Asian Banking and Finance in 2018 and leaped to the Top 34th and 36th Global Reinsurance Group by S&P and A.M. Best respectively in terms of gross written premium.
About Peak Re
Peak Re is headquartered in Hong Kong with shareholder equity of US$965.5 million as of 31 December 2018. 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) and Prudential Financial, Inc. hold 87% and 13% of Peak Re via Peak Reinsurance Holdings Limited, 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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