Franz-Josef Hahn, CEO, Peak Re
For the first time, India has been included in a 144A catastrophe bond, expanding risk transfer to one of the region’s fastest growing and most dynamic markets
Hong Kong: Peak Reinsurance Company (Peak Re) has raised $50 million through its second catastrophe bond, Black Kite Re Limited, addressing Asia’s evolving catastrophe risks while fostering sustainable growth across the Asia-Pacific region.
For the first time, India has been included in a 144A catastrophe bond, expanding risk transfer to one of the region’s fastest growing and most dynamic markets. It also marks the first multi-peril, multi-territory catastrophe bond issued by an Asian sponsor from an Asian domicile, underscoring Peak Re’s leadership in driving innovation across the region and addressing Asia’s evolving catastrophe risks.
Raised through a special purpose insurer (“SPI”) in Hong Kong, the capacity will be deployed in retrocessional reinsurance protection, extending coverage in Japan to earthquake and typhoon risks while introducing parametric earthquake protection for China and India.
“This transaction underscores our ability to pioneer innovative risk transfer solutions for the Asia-Pacific region. By combining developed markets like Japan with emerging markets such as India and China, we’ve created a unique diversifier that strengthens resilience for our clients and their communities,” said Franz-Josef Hahn, CEO of Peak Re.
“We are also proud to contribute to Hong Kong’s establishment as a global hub for ILS issuance and innovation. This bond reflects Peak Re’s broader mission to address Asia’s evolving catastrophe risks while fostering sustainable growth across the region.”
“The Black Kite Re 2025-1 bond provides us with a unique structure that combines industry-loss-trigger coverage for Japanese earthquake and typhoon risks with parametric earthquake protection for China and India,” said Iain Reynolds, Head of Third-Party Capital at Peak Re.
“This structure integrates the security of a fully collateralized retrocession with the efficiency and rapid response of parametric triggers, which benefits both Peak Re and ultimately our cedants.” added Sascha Bruns, Head of Global Retrocession at Peak Re.
This issuance represents a significant advancement in the use of insurance-linked securities (ILS) to address Asia’s growing catastrophe risks.
In addition, it is the first time a Hong Kong Special Purpose Insurer (SPI) has been reused for a second issuance, further highlighting the scalability and maturity of Hong Kong’s ILS framework.
GC Securities, a division of MMC Securities LLC, acted as the structuring agent and bookrunner. Mercer Investments (HK) Limited acted as a structuring agent and co-manager with respect to qualified Hong Kong investors. Cadwalader, Wickersham & Taft LLP acted as international counsel, and King & Wood Mallesons acted as Hong Kong counsel on the transaction.
Meanwhile, supported by strong underwriting and investment performance across all lines of business. Peak Re has recorded a net profit after tax of $ 187 million in 2024.
The reinsurer earned a stable gross written premium of of $1.76 billion and reinsurance revenue of $1.16 billion. It has a solvency ratio of 186% as on Dec 31,2024.
“In 2024, we successfully built on Peak Re’s strong business franchise to position us for further growth,” said Franz-Josef Hahn, Chief Executive Officer of Peak Re.
“Throughout the year, we further diversified our reinsurance portfolio both geographically and across different lines of business. We strengthened our robust network of client relationships through regular, transparent and timely engagements. Importantly, we demonstrated our leadership ambitions by further investing in our IT systems and business processes, thereby enhancing our capabilities to support our clients in navigating today’s fast-evolving risk landscape.”
Operating across China, India, Vietnam, Indonesia, and the Middle East, the Company offers tailored solutions that align with clients’ market objectives. Demand in these regions is fueled by demographic shifts such as ageing populations, rising non-communicable diseases, and evolving lifestyles, as well as structural changes like regulatory reforms and growing pressure on public healthcare systems to involve private sector support.
Peak Re’s assets under management reached $3.33 billion by end of 2024, up from $3.12 billion in 2023. Investment income rose to USD122 million, reflecting a yield of 3.6%.
“We see Peak Re’s role not just as a provider of capacity, but as a strategic partner,” said Franz-Josef Hahn.
“Our ambition is to continue offering innovative, tailored reinsurance solutions that support our clients’ evolving needs. The January 2025 renewals reinforced our client-centric approach, which is based on mutual understanding, transparency and long-term value creation,” added Franz-Josef Hahn.
The start of 2025 has been marked by continued volatility, including the devastating California wildfires. Nonetheless, global reinsurance capital has reached $607 billion, and Peak Re anticipates another year of strong demand for capacity.
The January 2025 renewals affirmed clients’ confidence in Peak Re, with over 80% of relationships retained and further expanded.