Peak Re’s shareholder funds increases by US$ 100 million to support future growth
Peak Reinsurance Company Limited (“Peak Re” or the “Company”) is pleased to announce that in time for the upcoming renewal season, its shareholder funds has increased by US$ 100 million to US$ 816.9 million. The capital increase will serve to underpin the growing scale, scope and complexity of Peak Re’s franchise.
In the first half year of 2016, Peak Re has grown its gross written premiums by 54% to US$274.4 million, up from US$177.7 million for the same period in 2015. Since its inception from almost four years ago, Peak Re has developed strongly and sustainably. The Company has successfully built a solid franchise with the continuous trust and support from its clients worldwide.
Franz-Josef Hahn, Chief Executive Officer of Peak Re, said: “Founded in late 2012, Peak Re is one of the few locally established reinsurers in Asia-Pacific, underwriting property and casualty and life and health business for our customers both in emerging and mature markets. Our capital increase is an important milestone in Peak Re’s strategic development. It serves the dual purpose of strengthening our contribution to reducing the prevailing underinsurance in Asia’s emerging insurance markets, and, at the same time, to further diversify and expand our global portfolio.”
The capital increase of US$100 million came from Peak Re’s largest shareholder, Fosun Group. Peak Re’s other shareholder, International Finance Corporation (IFC), a member of the World Bank Group, may participate in the capital increase at a later stage.
In late 2015, Peak Re opened an office in Zurich, to enhance its proximity and offerings to European clients. This office is currently in the process of being transformed into a fully licensed subsidiary. Last year Peak Re also announced the acquisition of a 50% share in the Caribbean primary insurer NAGICO, which further diversifies its risk portfolio with personal lines business. In the meantime, the transaction has received all regulatory approvals from the Caribbean regulators and closed in August 2016.
The global reinsurance market continues to soften and Peak Re also witnessed a further reduction in risk adequate pricing during the first half of 2016. However, the Company applies disciplined risk management in both underwriting and asset management. Barring any large loss events in the second half-year 2016, and with its prudent approach to reserving, Peak Re is confident in delivering another good year of results for the full year 2016.
About Peak Re
Peak Re is headquartered in Hong Kong with shareholder funds of US$816.9 million as of 31 August 2016. It is authorized by the Office of the Commissioner of Insurance of Hong Kong and is rated “A-” by A.M. Best, a leading international insurance industry credit rating agency. The Company is backed by Fosun International Limited (HK.656) and the International Finance Corporation, member of the World Bank Group, who have respectively invested 86.93% and 13.07% in the Company. Peak Re offers reinsurance treaty 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.
