Peak Re reports record profits and better margins for the first half of 2023
6 Oct 2023
Hong Kong, 5 October 2023 – Peak Reinsurance Company Limited (“Peak Re”), a Hong Kong-based global reinsurer, is pleased to announce its 2023 first half-year results (six months ended 30 June 2023) as follows (corresponding figures for six months ended 30 June 2022 shown in brackets)[1]
• Reinsurance revenue of USD750 million (USD971 million)
• Net profit of USD160 million (-USD103 million)
• P&C combined ratio at 82.2% (108.4%)
• Net assets of USD1.3 billion (USD1.3 billion)
• Solvency ratio at 287%[2] (261%)
Peak Re had a very successful first half in 2023, highlighting the Company’s earlier management actions’ effectiveness in rebalancing the portfolio and optimising capital allocations.
Franz-Josef Hahn, Peak Re’s Chief Executive Officer, said: “As of 30 June 2023, Peak Re generated a strong net profit of USD160 million based on reinsurance revenue of USD750 million, reflecting the superb quality of our underwriting portfolio. Our P&C combined ratio stood at 82.2%, a testament to our robust underwriting and astute risk selection capability.”
During the first half of 2023, Peak Re’s investment return improved to a strong 4.6% on an annualised basis. Investment income stood at USD74 million, compared with a loss of USD95 million in the same period of 2022. The improvement reflects higher recurring income yield and the decline in unrealised losses on the fixed-income portfolio of Peak Re, compared to the first half of 2022.
As of 30 June 2023, Peak Re’s investable assets and net assets were USD3.0 billion and USD1.3 billion, respectively. The solvency level remains strong, with a solvency adequacy ratio of 287%[3] . Peak Re has continued to deliver sustainable returns since its establishment.
Commenting on the outlook for the rest of the year, Mr Hahn said, “Our efforts at portfolio rebalancing continue to pay off strongly in the face of a hardening market. We have built a high-quality P&C portfolio that is well-diversified in terms of business lines and geographies. In addition, our L&H business remains a strong contributor to our reinsurance business and is growing steadily. Given the favourable tailwinds of robust reinsurance demand and firmer P&C pricing, I am confident we are heading towards one of the most profitable years in the Company’s history.”
[1] All first-half 2023 figures are based on IFRS 17 and IFRS 9. Figures for the first half of 2022 have been restated in accordance with such new standards. The P&C combined ratio is calculated as 1-“reinsurance result” divided by “reinsurance revenue after retrocession premium paid”.
[2] Solvency ratio of Peak Reinsurance Company Limited based on the requirements under the Hong Kong Insurance Ordinance (Cap.41) as of 30 June 2023.
[3] Solvency ratio of Peak Reinsurance Company Limited based on the requirements under the Hong Kong Insurance Ordinance (Cap.41) as of 30 June 2023.
• Reinsurance revenue of USD750 million (USD971 million)
• Net profit of USD160 million (-USD103 million)
• P&C combined ratio at 82.2% (108.4%)
• Net assets of USD1.3 billion (USD1.3 billion)
• Solvency ratio at 287%[2] (261%)
Peak Re had a very successful first half in 2023, highlighting the Company’s earlier management actions’ effectiveness in rebalancing the portfolio and optimising capital allocations.
Franz-Josef Hahn, Peak Re’s Chief Executive Officer, said: “As of 30 June 2023, Peak Re generated a strong net profit of USD160 million based on reinsurance revenue of USD750 million, reflecting the superb quality of our underwriting portfolio. Our P&C combined ratio stood at 82.2%, a testament to our robust underwriting and astute risk selection capability.”
During the first half of 2023, Peak Re’s investment return improved to a strong 4.6% on an annualised basis. Investment income stood at USD74 million, compared with a loss of USD95 million in the same period of 2022. The improvement reflects higher recurring income yield and the decline in unrealised losses on the fixed-income portfolio of Peak Re, compared to the first half of 2022.
As of 30 June 2023, Peak Re’s investable assets and net assets were USD3.0 billion and USD1.3 billion, respectively. The solvency level remains strong, with a solvency adequacy ratio of 287%[3] . Peak Re has continued to deliver sustainable returns since its establishment.
Commenting on the outlook for the rest of the year, Mr Hahn said, “Our efforts at portfolio rebalancing continue to pay off strongly in the face of a hardening market. We have built a high-quality P&C portfolio that is well-diversified in terms of business lines and geographies. In addition, our L&H business remains a strong contributor to our reinsurance business and is growing steadily. Given the favourable tailwinds of robust reinsurance demand and firmer P&C pricing, I am confident we are heading towards one of the most profitable years in the Company’s history.”
[1] All first-half 2023 figures are based on IFRS 17 and IFRS 9. Figures for the first half of 2022 have been restated in accordance with such new standards. The P&C combined ratio is calculated as 1-“reinsurance result” divided by “reinsurance revenue after retrocession premium paid”.
[2] Solvency ratio of Peak Reinsurance Company Limited based on the requirements under the Hong Kong Insurance Ordinance (Cap.41) as of 30 June 2023.
[3] Solvency ratio of Peak Reinsurance Company Limited based on the requirements under the Hong Kong Insurance Ordinance (Cap.41) as of 30 June 2023.
