Peak Re has successfully doubled its book of business up for renewal in the 1st January renewal season. Weathering the general market trend towards a continued softening, the Company has managed to grow its book of business across Asia. More importantly, its expected technical margins have improved year-on-year. Peak Re attributes this achievement to having built a strong underwriting team with excellent client reach and relationships, as well as deep market knowledge and understanding. By harnessing its best-in-class analytics, in combination with strong product and market underwriting skills, Peak Re has seen wider and better opportunities at the January renewals, which have been converted into profitable business growth. This progress in volume and margin was evidenced across the whole region, with notable improvements in China, South Korea and South East Asia.
Peak Re’s performance contrasts with some of its larger and longer-established peers’ renewals results.
Those companies have announced market share reductions, especially in China, blaming increasingly thin margins and heightened pressure from domestic (start-up) reinsurers. As ‘market underwriters, they opted in favour of portfolio and ‘cycle’ management. For Peak Re, as a nimble reinsurer with a refreshing approach to analytics, product and market management, it has proven possible to capitalise on its distinct strength and rapidly growing franchise for identifying and capturing profitable growth opportunities. These are undoubtedly still available in Asia’s highly diverse insurance market place where huge and even further expanding protection gaps remain a defining feature.
In Europe Peak Re also grew and diversified its book of business substantially during the renewals.
The Company saw challenging trading conditions, however, based on the swift establishment of its subsidiary in Zurich, the Company was able to buck the trend. Peak Re’s local presence in Zurich is viewed by clients as a strong commitment to the European markets – it was rewarded with increased support from both cedants and brokers.
In addition, on the back of its Swiss subsidiary, Peak Re was able to meet new regulatory requirements in certain markets as a prerequisite for continued growth.
Franz Hahn, Peak Re’s CEO, concludes: “The encouraging renewals performance in Europe and Asia would have been unthinkable without the hard work of Peak Re’s team. It smoothly runs a single platform between our Hong Kong and Zurich offices which enables a modern low-cost business model – to the benefit of our clients and shareholders alike.”
