Peak Re targets structured solutions, MGAs and new markets in European growth push

Structured solutions, deeper client relationships and selective expansion into CEE and the Nordics will shape Peak Re’s European growth plans, Matteo Cussigh tells Baden-Baden Today.

Key points:
CEE and Nordics offer room to grow
More sophisticated structures planned
Looks to expand in MGA market

Peak Re’s Switzerland-based subsidiary plans to increase its structured solutions business in Europe while building further in Central and Eastern Europe, the Nordics and Latin America under the group’s growth plan.

Treaty reinsurance will remain the core of its European business at the 1 January renewals, Matteo Cussigh, chief executive of Peak Reinsurance AG told Baden-Baden Today, with the bigger changes expected to develop over several years rather than at one renewal.

One area likely to move sooner, Cussigh said, is structured solutions, a business Peak Re launched at group level three years ago. These can include multi-year, aggregate and proportional structures designed to support an insurer’s capital position or smoothen losses over time.

“We have had very good success here in Europe, so the intention is to do more,” he said. “Over time, we also want to move towards more complex and sophisticated solutions.”

Deeper relationships

Peak Re also wants to do more business with existing European clients and strengthen its position outside its core Western European markets.

Cussigh pointed to Central and Eastern Europe and the Nordics as areas where the reinsurer has a smaller presence today. 

“We want to continue establishing ourselves geographically throughout Europe and build a more balanced portfolio,” he said. “With existing clients, we will also try to expand the relationship to additional lines of business.”

Peak Re has spent more than a decade building its European treaty book. 

“We are a relatively young reinsurer. We have been operating for 14 years and have mainly offered standard treaty reinsurance across the main lines,” he said. “The vision is to grow in scale so that, over time, clients can come to Peak Re and discuss a much broader range of products, services and needs.”

“We want to continue establishing ourselves geographically throughout Europe and build a more balanced portfolio.”

MGA partnerships

Distribution will also broaden. Peak Re wants to increase its work with brokers and expand in the MGA market, particularly where specialist partners bring expertise the reinsurer cannot access through traditional channels.

“We are especially interested in MGAs that bring specialised expertise and innovative underwriting capabilities,” Cussigh said.

The Zurich operation is also progressively building a Latin American book. Peak Re has written business in the region directly from Zurich for the past three years and is licensed in 10 Latin American countries. 

Cussigh estimated Latin America could account for close to 10% of the Zurich portfolio this year and expects it to grow faster than Europe, albeit from a far smaller base. Mexico, Dominican Republic, Chile and Peru are among its larger markets.

“As Peak Re aims to further expand its global reach, Latin America is a very important area of development for us,” Cussigh said. “The portfolio has grown steadily over the past three years, and we have ambitions to do a lot more going forward.”

The region offers substantial demand for catastrophe protection and gives Peak Re another source of geographical diversification.

Soft market test

How quickly Peak Re pursues those opportunities will depend on market conditions.

Cussigh described the current situation as a softening market, with strong capital generation and additional money entering the sector continuing to compress margins.

“At this stage of the cycle, we want to be selective and decide which clients we want to support in the soft market,” he said. “Opportunities are always available. You just need to make sure you pick the right ones.”

The same pressure is visible in renewal discussions. Cussigh said lower attachment points and frequency covers had come up at Monte Carlo as cedants looked to get more protection from their existing budgets.

Higher attachment points since 2023 have in many cases left insurers retaining a larger share of natural catastrophe losses. Reinsurers do not always see some of the events, but cedants continue to feel the impact in their P&Ls.

Cussigh said it is therefore reasonable for buyers to look for ways to reduce that volatility, although any frequency cover would still need meaningful cedant retention to avoid simply exchanging premium for predictable losses.

Peak Re’s own growth plans will be subject to the same return discipline.

“We mostly finance our growth through our own profits,” Cussigh said. “Discipline is paramount; it’s where it starts and where it ends. If the market is soft, we might slow down the growth.”

Matteo Cussigh is the chief executive officer for Peak Reinsurance AG. He can be contacted at matteo.cussigh@peak-re.com 

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