Hong Kong-based global reinsurer Peak Re has recorded a net loss of US $81 million in its full-year results for 2022, compared to the prior year’s net profit of $73.2 million.
At the same time, the company reported a 7% rise in gross written premium (GWP) to $2.3 billion, up from $2.1 billion in 2021.
Moreover, Peak Re’s net earned premiums decreased by 12.8% to $1.5 billion for 2022, as the firm took steps to expand its retrocession protection and sponsored the issuance of the first-ever 144A cat bond to be placed in Hong Kong, through special-purpose insurer, Black Kite Re Limited.
Throughout the year, Peak Re repositioned and continued to further diversify its portfolio and realign its book in markets where losses stemming from nat cat events continued to increase.
In 2022, the firm also manged to expand and grow its Motor, Accident & Health and Pecuniary business lines and consolidated its presence in Asia-Pacific, now representing 61% of its GWP, with 23% from the Americas and 16% from Europe, the Middle East and Africa.
Franz-Josef Hahn, Chief Executive Officer of Peak Re, commented: “Throughout 2022, the global economy and reinsurance markets were in turmoil due to geopolitical tensions and macroeconomic shocks, amid a receding pandemic and extreme weather events affecting all regions.
“While we recorded further premium growth during the year thanks to strong 2022 renewals, our bottom-line results were impacted by significant mark-to-market losses on our fixed-income investment portfolio and continued high levels of catastrophe losses.
“As well as being a year remembered for major market dislocations, 2022 was also a year in which Peak Re celebrated its 10th anniversary. We have grown to be a trusted reinsurance partner within a short period of time, serving over 580 clients in almost 60 global markets. Despite reporting our first net loss, I am proud that Peak Re weathered this exceptionally turbulent year of 2022 with agility and finesse, adapting to the evolving risk and capital landscape and strengthening itself to embrace further challenges and opportunities for all our stakeholders.”