Full year 2020 Key Financial Highlights[1]
- Gross written premiums were USD1,966 million, up 18% compared to FY2019
- Net profit reached USD87.1 million, up 150% year-on-year
- Total equity grew to USD1,487 million, from USD1,095 million in FY2019
- Investment income return was 3.4% with investable assets; net assets at USD2.6 billion and USD1.5 billion, respectively
- Management expense ratio remained at a low level of 3.7% and combined ratio at 97.6%
Peak Reinsurance Company Limited (“Peak Re” or “the Company”), the Hong Kong-based global reinsurer, released its 2020 Annual Results today. The Company reported gross written premiums in 2020 rose to USD1,966 million, up from USD1,665 million in 2019, and its net profit grew to USD87.1 million, from USD34.9 million in 2019.
Despite the headwinds of a pandemic and an economic recession, Peak Re remained steadfast in its deep client partnership approach, and has successfully built a robust business portfolio that is increasingly diversified across clients, business lines and geographies. Peak Re reported stable revenue growth in Asia Pacific and strong performance in the Americas and EMEA. In 2020, 61% of the company’s revenue (based on gross written premium) was generated from Asia Pacific, 29% from the Americas, and 10% from EMEA, representing an increase of 5.4%, 52.4% and 30.9% respectively when compared to 2019.
“While the events of 2020 have stress tested the reinsurance industry, for Peak Re, it was both a remarkable and successful year. Our resilience and agility enabled us to achieve key milestones and deliver another year of strong results.” said Franz Josef Hahn, Chief Executive Officer of Peak Re.
Peak Re’s Achievements and Strategic Developments in 2020
- Obtained its first-time A3 insurance financial strength rating (IFSR) with a stable outlook by Moody’s
- First Hong Kong-based global reinsurer to issue publicly-listed perpetual subordinated guaranteed capital securities
- Completed acquisition of Bermuda-based insurance-linked securities (‘ILS”) investment specialist Lutece Holdings Ltd. and its subsidiary, and rebranded the group into Peak Capital
- Ranked 29th in S&P Global Rating’s Top 40 Global Reinsurance Groups 2020 in terms of net reinsurance premiums written*
- Completed second Lion Rock Re Ltd. sidecar transaction which was renewed and upsized to USD77 million
- Maintained a six-year track record of over 90% of claims settled within five days
“We expect 2021 will offer many causes for optimism as we enter into a period of steady global recovery. Peak Re is on the journey to build a sustainable future with our partners. With the recovery already underway in Asia, we are looking to our Asia Pacific region to continue outperform other regions and be the growth driver for the broader economy, as well as the insurance industry. This presents significant room for us to further grow in emerging markets where economies are still expanding.”
All financial statements in the Peak Re Annual Report 2020 were independently audited by Ernst & Young. To download the full Annual Report, please visit https://www.peak-re.com/wp-content/uploads/2021/05/Peak_Re_Annual-Report_2020_ENG.pdf.
[1] All figures in this release are as of 31 December 2020, unless otherwise stated.
