Hong Kong-based reinsurer Peak Re has 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.
Net profit for the full-year improved on the $19.5 million recorded in 2018, with a strong performance recorded in both its Property & Casualty (P&C) and Life & Health (L&H) businesses.
As well as reporting a higher level of profit, Peak Re also saw its premium income increase by 20% to USD 1.7 billion, when compared with the USD 1.38 billion announced in 2018.
The company says that its gross written premium expansion and solid net profit for the year reflect its strong underwriting performance and effective risk management, which enabled the reinsurer to navigate smoothly through a year underpinned by the frequent occurrence of natural catastrophes and market volatility.
Peak Re’s Chief Executive Officer (CEO), Franz Josef Hahn, commented: “2019 is best characterised as a balanced year. While the global reinsurance industry was affected by the recurring number of natural catastrophes and rates hit the bottom of the pricing cycle, we have adopted a fresh perspective that allowed Peak Re to weather these uncertainties well, demonstrating the inherent resilience in our business model as well as our ability to seize opportunities as they arise.”
By segment, and Peak Re states that its P&C unit performed well in the year despite a challenging operating environment. Within P&C, continued growth across all geographies contributed to the majority of the firm’s premium income in the year.
In L&H, Peak Re notes significant growth in 2019, which was generated by volume expansion in traditional risk and structured reinsurance solutions.
In addition, Peak Re has reported that in 2019, its investible assets increased to USD 2.1 billion and net assets totalled USD 1.1 billion. Total assets reached USD 4.4 billion for the year. Peak Re has also revealed an administrative expense ratio of 3.4%, and a solvency ratio of 367% for the year ended December 31st, 2019.
“We thank all of our clients, business partners and shareholders for their trust, the team for its relentless hard work and our board of directors for its strong guidance. We are pleased with what we have achieved together and confident of our outlook for 2020 and beyond,” said Hahn.