Peak Reinsurance Company has completed the issuance of a US$50 million catastrophe bond, covering earthquake risks in mainland China, Japan, and India, along with typhoon risks in Japan.
The bond was issued through Black Kite Re Ltd., a special purpose insurer established by Peak Re in 2022.
The Insurance Authority (IA) of Hong Kong confirmed the transaction on April 30, saying that the issuance contributes to the development of the city’s insurance-linked securities (ILS) market.
The bond, equivalent to approximately HK$388 million, marks the second catastrophe bond sponsored by Peak Re using the same infrastructure in Hong Kong.
A spokesperson from the IA said Peak Re’s decision to return to the Hong Kong market for its second ILS issuance reflects the jurisdiction’s competitiveness and development as an ILS hub. The spokesperson noted that the broader coverage of natural hazards in this bond illustrates the potential role of ILS in addressing protection gaps across the Asia-Pacific region.
Since Hong Kong introduced a bespoke regulatory framework and launched a pilot grant scheme for ILS in 2021, the city has recorded about US$800 million (HK$6.2 billion) in total ILS issuance.
The Financial Secretary announced in the 2025-26 Budget that the grant scheme will be extended through 2028 to continue supporting growth in this segment of the insurance market.
Hong Kong's cat bond market continues to develop, with recent issuances and strategic initiatives enhancing its role as a hub for ILS.
Earlier this year, Taiping Reinsurance Company issued a US$35 million catastrophe bond through Silk Road Re Limited, a Hong Kong-incorporated special purpose insurer. This bond provides three years of protection against earthquake risks in Mainland China and named storms in the United States.
Notably, it is Asia's first cat bond featuring dual perils and dual triggers for payout, marking the sixth ILS issuance in Hong Kong since the regulatory regime's inception in 2021
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