2 November 2015 News

Asia to remain core to Peak Re

Peak Re’s recent expansion into the European market by opening an office in Zurich will not mean it will ignore either its roots in Asia or opportunities in other parts of the world, Franz Hahn, chief executive of Peak Re, told SIRC Today.

The company recently opened a branch office in Zurich in September and as of June 2015, Peak Re wrote more than 25 percent of its premiums outside its core Asia-Pacific region.

But Hahn said that opportunities in Asia-Pacific remain abundant, especially for a reinsurer like Peak Re with its unique Asian pedigree.

“Asia-Pacific will remain a growth region, albeit at a slower pace. Underinsurance remains a persistent phenomenon as insurance penetration in key markets such as China or Indonesia is still at about half of the global average,” he said.

“As this gap continues to narrow, Peak Re with its strong expertise and experience in Asia is well positioned to benefit from this momentum. We will continue to enlarge our position by expanding into further lines of business such as life, but also by growing our position in credit & surety and agriculture.

“Furthermore, we will grow our footprint in our core Asian markets such as China, and also in frontier markets such as Pakistan where Peak Re can contribute to advancing the still nascent insurance sector.”

In July, it announced the agreement to acquire a 50 percent stake in NAGICO Holdings, a property/casualty insurer based in the Caribbean which, Hahn said, will provide Peak Re with attractive growth prospects in the region. The transaction is currently waiting for regulatory approval and is expected to close by the end of this year.

“NAGICO provides us with access to Caribbean exposure, a risk currently entirely uncorrelated with our Asia-Pacific nat cat exposure. Growth in the Caribbean reduces our dependence on our Asia-Pacific growth markets,” he said.

“In addition NAGICO, as a Caribbean primary insurer, requires consistent reinsurance and asset management support, which Peak Re will be able to offer.

“The acquisition is very much in line with the strategy of our 14.9 percent shareholder, the IFC, which is committed to strengthening re/insurance markets in emerging and developing countries.”

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