Peak Re’s capitalisation remains robust amidst strong profits

Its net profit reached $200m in 2023.

Peak Reinsurance’s risk-adjusted capitalisation is expected to remain robust, as indicated by AM Best’s Capital Adequacy Ratio (BCAR). The company’s capital and surplus rose by 14.3% to $1.3b at the end of 2023, driven by improved operating earnings and favourable investment valuations.

Its net profit reached $200m in 2023, bolstered by better reinsurance service results and investment performance. Peak Re has also restructured its non-life underwriting portfolio to enhance technical margins and manage catastrophe exposure.

Peak Re’s stable outlook is based on Fosun International Holding’s improved debt quality ratings and the reduced likelihood of adverse events affecting Peak Re. 

Fosun’s financial leverage has been decreasing, and despite macroeconomic challenges, Peak Re has effectively managed potential risks associated with Fosun’s weaker credit fundamentals through measures like board oversight and stringent related-party transaction policies.

The company’s diversified non-life portfolio primarily targets the Asia Pacific region, whilst it continues to expand its life reinsurance business, particularly in health products in China. Peak Re is also strengthening its presence in structured reinsurance solutions.