Hong Kong-based global reinsurer Peak Re has announced its 2024 full-year financial results, reporting a net profit after tax of $187 million, which marks the company’s second-best results in its 12-year history.
The company attributed this success, driven by all of its business units, to its resilience and sustained profitability amid a challenging risk environment.
Gross written premiums (GWP) remained stable at $1.76 billion, due to prudent underwriting, alongside reinsurance revenue of $1.16 billion.
The reinsurance service result reached $144 million, with a solvency ratio of 186%.
A key factor in Peak Re’s positive results was the strategic restructuring of its Property & Casualty (P&C) portfolio, initiated in 2022. This shift from proportionate to non-proportionate coverages and higher excess-of-loss layers, successfully shielded the company from the market’s elevated natural catastrophe losses in 2024.
This strategic approach was further refined throughout the year to bolster portfolio resilience and proactively prepare for potential market softening, emphasising global diversification and a balanced approach between P&C and Life & Health (L&H) business lines.
Notably, Peak Re expanded its presence in the US SME market, particularly in casualty and cyber risk, through its Bermuda platform.
Combined with disciplined expense management, these measures led to a significant reduction in the combined ratio to 84%, down from 87.3% in 2023.
In 2024, Peak Re’s L&H business, which also includes the company’s short-term health business, generated $405 million in GWP, representing 23% of the company’s total reinsurance portfolio.
While this marks a slight decline from the previous year, it underscores the segment’s continued strategic importance and strong foundation for future growth, Peak Re noted.
Franz-Josef Hahn, Chief Executive Officer of Peak Re, said: “In 2024, we successfully built on Peak Re’s strong business franchise to position us for further growth. Throughout the year, we further diversified our reinsurance portfolio both geographically and across different lines of business.
“We strengthened our robust network of client relationships through regular, transparent and timely engagements. Importantly, we demonstrated our leadership ambitions by further investing in our IT systems and business processes, thereby enhancing our capabilities to support our clients in navigating today’s fast-evolving risk landscape.”
Peak Re also reported an increase in assets under management by 6.8% to $3.33 billion with investment income for the year reaching $122 million.
The company’s Return on Adjusted Equity (ROAE) stood at a healthy 15.7%, and total equity rose to $1.43 billion, supported by strong underwriting and investment performance across all lines of business.
As part of its strategic growth initiatives, in 2025, Peak Re opened a branch in Gujarat International Finance Tec-City (GIFT) City, India, and secured a subsidiary license in Bermuda.
Looking ahead, in 2025 Peak Re anticipates another year of strong demand for capacity despite ongoing market volatility, including the recent California wildfires.
The January 2025 renewals affirmed clients’ confidence in Peak Re, with over 80% of relationships retained and further expanded, the firm noted.
“We see Peak Re’s role not just as a provider of capacity, but as a strategic partner,” said Franz-Josef Hahn. “Our ambition is to continue offering innovative, tailored reinsurance solutions that support our clients’ evolving needs. The January 2025 renewals reinforced our client-centric approach, which is based on mutual understanding, transparency and long-term value creation.”
