Hong Kong domiciled reinsurer Peak Reinsurance has reported a net income of $26.1 million over the first half of 2020, up from $13.5 million in the prior year period.
Despite the negative impact COVID-19 continues to have on overall re/insurance industry performance, Peak Re’s results in the period are strong.
In fact, the company expects the total impact of COVID-19 for 2020 performance to be mild, thanks to the kinds of risks it underwrites and fact it has a business concentration in Asia where the epidemic’s influence is low.
Peak Re generated premium income of $855.9 million in H1, up from $815.8 million in 2019.
The underwriting margin improved to 10.8% in the first half underwriting year of 2020, against the 7.4% seen in 2019.
Peak Re attributes this to further portfolio molding and rates hardening in Japan and US.
Additionally, Peak Re introduced a strong corporate focus on the Non Commoditised Business, which it hopes will ensure strong pricing stability based on business development.
As of 30 June 2020, total investment return was 0.7%, with investable assets and net assets at $2.0 billion and $1.1 billion, respectively.
