Peak Re reports sixth year of growth ‘despite severe nat cats’
Hong Kong-based global reinsurer Peak Re has reported its sixth consecutive year of stable growth in 2018 despite what it called a “challenging environment”.
In the figures published today, the reinsurer highlighted gross premium income of US$1.38 billion for 2018, total assets of US$3.75 billion, a net profit of US$19.5 million, with a combined ratio 98.3 percent.
Franz Josef Hahn, chief executive officer at Peak Re, said the net profit figures and combined ratio reflected stable growth throughout one of the costliest years for the industry.
The reinsurer settled more than 90 percent of claims in under five days, which is a record that is unmatched in the industry, it said.
In 2018, Peak Re grew its network of services and completed its first full year of business in India, with additional support with Hong Kong’s signing of a double taxation agreement with India. This allows the company to write business from Hong Kong cost-efficiently on its one-underwriting platform.
China is still a key market for the reinsurer and the company worked to “shore up” its business strategy and underwriting policies there. It said this has led to substantial growth in the region. Peak Re gained “fresh impetus” from the agreement between the China Banking and Insurance Regulatory Commission and Hong Kong’s Insurance Authority to give equivalent status to reinsurers in HongKong, it said.
The company’s vision to expand insurance coverage to Asia, particularly Southeast Asia, emerging middle class makes the region core focus. Peak Re operates there via its branch in Labuan and as an authorised reinsurer in Singapore. The reinsurer also expanded in Asia by establishing a representative office in Japan in 2018.
Peak Re is proud to have “made history by launching Asia’s first sidecar” in December 2018. This lines up with its mission to modernise reinsurance while supporting growth in Asia Pacific and beyond.
Hahn said: “We are extremely proud that after six years of operations, we have successfully established a strong footing in the industry as a significant global player.”
He added: “2018 is a defining year for Peak Re. In spite of the multiple severe natural catastrophes, including Japan’s Jebi and Trami and two significant hurricanes in North America —Florence and Michael — and wildfires in California, Peak Re managed to achieve remarkable results.
