Hong Kong-based global reinsurer Peak Re has recorded a net profit of $160 million for the first half of 2023, compared to the prior year’s net loss of $103 million.
Peak Re reported reinsurance revenue of $750 million, reflecting a slight decrease from $971 million in the same period in 2022.
Property & Casualty (P&C) combined ratio improved significantly, standing at 82.2% compared to 108.4% in the corresponding period last year.
Peak Re’s net assets remained stable at $1.3 billion, while it also reported a solvency ratio of 287%, a notable increase from 261% in the first half of 2022.
During the first half of 2023, Peak Re posted an annualised investment return of 4.6%. It also reported investment income of $74 million, compared with a loss of $95 million in the same period of 2022.
The improved investment results are primarily attributed to a higher recurring income yield, and the decline in unrealised losses on the fixed-income portfolio compared to the first half of 2022, the reinsurer noted.
As of June 30, 2023, Peak Re’s investable assets and net assets stood at $3.0 billion and $1.3 billion, respectively. Peak Re maintains a robust solvency position, with a solvency adequacy ratio of 287%.
Commenting on the outlook for the rest of 2023, Franz-Josef Hahn, Peak Re’s CEO, said, “Our efforts at portfolio rebalancing continue to pay off strongly in the face of a hardening market. We have built a high-quality P&C portfolio that is well-diversified in terms of business lines and geographies. In addition, our L&H business remains a strong contributor to our reinsurance business and is growing steadily. Given the favourable tailwinds of robust reinsurance demand and firmer P&C pricing, I am confident we are heading towards one of the most profitable years in the Company’s history.”