Peak Re’s profit plummets in 2016
Hong Kong-based Peak Reinsurance Company's net profit was $6.9 million in the 2016 financial year, which compares to $59.2 million in the previous year.
The results were included in Fosun’s 2016 financial report. The Chinese conglomerate owns the majority in Peak Re’s equity with an 86.93 percent stake. Fosun gave no reason for the profit drop at its subsidiary.
The reinsurer’s income grew to $698.2 million in 2016 from $582.7 million in the previous year. The combined ratio was 97.6 percent in 2016.
In August 2016, Peak Re issued additional share capital of $100 million, growing its shareholder equity to $841.1 million as of 2016-end.
At the end of 2016, Peak Re has created a unit in Zurich to benefit from Solvency II equivalence and told Intelligent Insurer that it sees growth potential in proportional reinsurance business in Europe.
Also in 2016, Peak Re has completed its first strategic investment of a 50 percent stake in NAGICO Holdings, a Caribbean insurance group, to grow its exposure to the Caribbean market and diversify its portfolio globally.
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