Peak Reinsurance Company Limited (“Peak Re”), a Hong Kong-based global reinsurer, is pleased to announce that A.M. Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-“ of Peak Re and its Zurich-based subsidiary, Peak Reinsurance AG (“Peak Re AG”). The outlook of the credit ratings of both companies is stable.
The A.M. Best ratings reflect Peak Re’s very strong balance sheet, as well as its operating performance, business profile and enterprise risk management. The rating agency emphasized Peak Re’s robust risk-adjusted capitalisation, a strengthening trend in its capital and surplus, its controlled level of net underwriting leverage and an improvement in its overall investment risk profile, as well as its strong liquidity.
In addition, A.M. Best recognized that Peak Re consistently reported favorable operating results over the past five years as the company continues to operate with efficiency, as reflected in its stable and lower-than-average management expense ratio. Investment results have been favorable over the past five years too, supported by a growing stream of interest and dividend income from debt and listed equity investments. The rating agency also noted that Peak Re continues to diversify its business portfolio. While the business mix is primarily focused on non-life business, the company further expands its life and health business, namely in the area of medical reimbursement.
Peak Re now ranks on the 34th position of A.M. Best’s annual ranking of the top 50 Global Reinsurance Groups, having ascended by nine ranks in the past two years. Peak Re has also been awarded “Asian Reinsurers of the Year” for the fourth consecutive time by Asian Banking and Finance magazine. Both acknowledgements are a tribute to its successful establishment as a significant global player, with a strong footing in the reinsurance industry.
For more information about the ratings, please see the A.M. Best press release.