Peak Re outlook stable as KKR, Quadrantis take stakes through parent firm

AM Best also said it expects Peak Re to retain its strong risk management.

Peak Reinsurance is expected to to maintain its financial stability and sound governance as new investors join its ownership structure, AM Best said.

The outlook follows plans by KKR & Co. Inc. and Quadrantis Capital to acquire minority stakes in Peak Re through its parent company, Peak Reinsurance Holdings Limited.

The transactions, pending regulatory approval, will leave Fosun International with about 86.71% of Peak Re’s shares, whilst KKR and Quadrantis Capital will hold around 11.27% and 1.80%, respectively. 

Fosun temporarily owns nearly 100% after buying Prudential Financial’s 13.07% indirect stake.

AM Best said Peak Re stands to benefit from greater financial flexibility and investment expertise through KKR’s involvement. 

The agency also expects Peak Re to retain its strong risk management and ring-fencing measures despite Fosun’s weaker credit profile.