Peak Re unveils first Asian reinsurance sidecar

Hong Kong-based Peak Reinsurance Company has launched what it described as Asia’s first sidecar transaction.

The deal was processed via a new Bermuda-domiciled special purpose insurer, Lion Rock Re, which secured commitments of $75 million from third-party investors.

As part of the deal, Lion Rock Re has entered into an exclusive quota share agreement to reinsure part of Peak Re’s global property reinsurance risk portfolio. The transaction is expected to close in mid-December 2018.

“Peak Re is pleased to be a pioneer in launching Asia’s first sidecar transaction in the reinsurance industry,” said Franz Josef Hahn, CEO of Peak Re. “It marks an important milestone in the reinsurance market of Hong Kong as well as Asia. The transaction is supported by a range of high-quality global investors who see the investment as a one-of-a-kind opportunity to invest alongside Peak Re and gain exposure to a unique geographically diverse property portfolio.”

A reinsurance sidecar allows investors to participate in specific books of insurance or reinsurance business.

Lawrence Cheng, managing director, underwriting at Peak Re, added: “Peak Re was established in 2012 to support the needs of communities and emerging middle class societies by meeting reinsurance needs covering life, health and non-life risks, in Asia and around the globe. We are very pleased with the positive reception from the ILS (Insurance-Linked Securities) investors that recognised our strong track record. We look forward to continuing to broaden our partnerships with the capital markets in the future.”

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