Hong Kong domiciled reinsurer, Peak Reinsurance Company Limited (Peak Re), has secured $75 million of collateralised retrocession from private investors via its new Bermuda-domiciled special purpose insurer, Lion Rock Re Ltd.
The deal is Asia’s first sidecar transaction and Peak Re claims that it represents an important milestone for the region’s reinsurance industry.
Lion Rock Re will now enter into an exclusive quota share agreement with Peak Re to reinsure part of its global property reinsurance risk portfolio.
The special purpose vehicle successfully secured commitments from a panel of global third-party investors, with Aon Securities acting as the structuring and placing agent of the transaction.
“Peak Re is pleased to be a pioneer in launching Asia’s first sidecar transaction in the reinsurance industry. It marks an important milestone in the reinsurance market of Hong Kong as well as Asia,” said Franz Josef Hahn, Chief Executive Officer (CEO) of Peak Re.
“The transaction is supported by a range of high-quality global investors who see the investment as a one-of-a-kind opportunity to invest alongside Peak Re and gain exposure to a unique geographically diverse property portfolio,” he continued.
Lawrence Cheng, Managing Director, Underwriting at Peak Re, also commented: “Peak Re was established in 2012 to support the needs of communities and emerging middle class societies by meeting reinsurance needs covering life, health and non-life risks, in Asia and around the globe.
“We are very pleased with the positive reception from the ILS (Insurance-Linked Securities) investors that recognised our strong track record. We look forward to continuing to broaden our partnerships with the capital markets in the future.”