Peak Re places USD 77m Lion Rock Re II Sidecar

• Peak Re renewed and upsized the Lion Rock Re Ltd. to US$77 million from high-quality global investors
• Demonstrates that Hong Kong can become a hub for ILS investors

Following on from last year’s groundbreaking placement of Lion Rock Re, Asia’s first reinsurance sidecar transaction, Peak Reinsurance Company Limited (“Peak Re”), a global reinsurer based in Hong Kong, is pleased to announce that investors have supported Lion Rock Re II for 2020 with an increase in capacity for the coming period. This is further testament to investors’ view that Lion Rock Re gives them access to a unique and high quality portfolio of reinsurance business.

As previously, Lion Rock Re II will enter into an exclusive quota share arrangement with Peak Re to reinsure part of Peak Re’s global property reinsurance portfolio.

“Following on from the steps we took in bringing Lion Rock Re to the industry, we are very pleased to be able to announce that investors have chosen to support us once again. We said that last year was a milestone for the reinsurance market in Hong Kong, but the confidence shown in Lion Rock Re II really shows that Hong Kong can become a hub for ILS investors. Lion Rock Re II will allow us to continue our drive towards modernising reinsurance and bringing more communities under the umbrella of protection that insurance and reinsurance provides,” said Franz Josef Hahn, Chief Executive Officer of Peak Re.

Lawrence Cheng, Managing Director, Underwriting said, “creating a sidecar has always been part of Peak Re’s long term strategy, and the trust shown by investors will allow us to continue to develop our relationships with ILS managers and investors as we go forward. The judicious allocation of risk to Lion Rock Re through 2019 certainly helped us to deliver returns for investors and we look forward to following this through in 2020.”

Aon Securities LLC is the structuring and placement agent of the transaction.

Note to editor: A reinsurance sidecar is a financial structure established to allow investors to take on the risk and benefit from the return of specific books of insurance or reinsurance business.

It plays an important role in narrowing the protection gap in society while providing investors access to new regions, perils and opportunities.

About Peak Re

Peak Reinsurance Company Limited (“Peak Re” or “the Company”), authorised by the Insurance Authority of Hong Kong, is the only privately owned global reinsurance company headquartered in Hong Kong. It is also one of the few locally established reinsurance companies in Asia Pacific, underwriting both life and non-life reinsurance business.

With a shareholder equity of over US$1 billion as of 30 June 2019, it enjoys an “A-” rating by A.M. Best, a leading international insurance industry credit rating agency, and ranks among the top 34 global reinsurance groups in terms of gross written premiums*.

Peak Re strives to provide innovative and forward-looking reinsurance services for customers in the Asia Pacific, Europe, Middle East and Africa and the Americas. It tailors risk transfer and capital management solutions to best fit clients’ needs.

Fosun International Limited (00656.HK) and Prudential Financial, Inc. hold approximately 87% and 13% of Peak Re via Peak Reinsurance Holdings Limited, respectively.

* Source: A.M. Best Top 50 Global Reinsurance Groups 2019