Peak Re places $77m Lion Rock Re II sidecar

Following on from last year’s placement of Lion Rock Re, Asia’s first reinsurance sidecar transaction, Peak Reinsurance Company (Peak Re), a global reinsurer based in Hong Kong, has secured investor support for Lion Rock Re II for 2020 with an increase in capacity for the coming period.

As previously, Lion Rock Re II will enter into an exclusive quota share arrangement with Peak Re to reinsure part of Peak Re’s global property reinsurance portfolio.

“Following on from the steps we took in bringing Lion Rock Re to the industry, we are very pleased to be able to announce that investors have chosen to support us once again,” said Franz Josef Hahn, chief executive officer of Peak Re. “We said that last year was a milestone for the reinsurance market in Hong Kong, but the confidence shown in Lion Rock Re II really shows that Hong Kong can become a hub for ILS investors. Lion Rock Re II will allow us to continue our drive towards modernising reinsurance and bringing more communities under the umbrella of protection that insurance and reinsurance provides.”

Lawrence Cheng, managing director, underwriting, added: “Creating a sidecar has always been part of Peak Re’s long term strategy, and the trust shown by investors will allow us to continue to develop our relationships with ILS managers and investors as we go forward. The judicious allocation of risk to Lion Rock Re through 2019 certainly helped us to deliver returns for investors and we look forward to following this through in 2020.”

Aon Securities LLC is the structuring and placement agent of the transaction.