Hong Kong domiciled reinsurer, Peak Reinsurance Company Limited, has received an A3 insurance financial strength rating (IFSR) from Moody’s Investors Service, while the outlook on the rating is stable.
Moody’s highlights the reinsurance company’s good franchise in the Asian reinsurance sector, robust capitalisation, expanding product and geographical diversification, alongside a growing product mix with low reserving risks.
The ratings agency notes that with nearly eight years of operating history, Peak Re has become one of the top 40 global reinsurers by premiums. As well as its strong foothold in Asian markets, the company has diversified its operations outside of the region with the Americas and EMEA contributing 32% of gross premiums in 2019.
As we reported at the time, Peak Re reported a year-on-year rise in net profit in 2019 to USD 35 million, despite the impacts of frequent natural catastrophe events and market volatility.
Commenting on the first-time A3 IFSR, Peak Re’s Chief Executive Officer (CEO), Franz Josef Hahn, said: “I am extremely delighted of this new rating for Peak Re. It is testimony to the years of hard work of our team. I appreciate the strong support by all of our stakeholders as from the humble beginning as a start-up company eight years ago.”
According to Moody’s, the stable outlook reflects its expectation that Peak Re will maintain its solid capitalization while gradually improving its profitability. Additionally, says Moody’s, it reflects the expectation that the weakening credit profile of Fosun would not have a material impact on Peak Re’s operations, business and financial profiles.
Earlier this year, Peak Re completed its acquisition of the capital of Lutece Holdings and its subsidiary Lutece Investment Management, with the Bermuda-based ILS investment specialist now a wholly owned subsidiary of Peak Re.