Peak Reinsurance has launched a new subsidiary, Peak Reinsurance North America Ltd., headquartered in Bermuda.
The new entity is licensed as a Class 3B insurer and will focus on underwriting casualty reinsurance. It will operate as part of the wider Peak Re group, based in Hong Kong, with functions aligned across underwriting, pricing, marketing, and risk management.
As part of this transition, Peak Re NA will take over the US motor and casualty reinsurance portfolio previously written by Peak Capital Ltd. The shift reflects a broader realignment of responsibilities within the group, concentrating North American business under a dedicated Bermuda-based entity.
In support of the new operation, AM Best has assigned a financial strength rating of A- (Excellent) and a long-term issuer credit rating of “a-” to Peak Re NA. The outlook for both ratings is stable.
The agency cited the subsidiary’s strategic alignment with group-level objectives and its role in contributing to Peak Re’s diversification efforts.
Group CEO Franz-Josef Hahn said the launch represents a key element of Peak Re’s global growth strategy.
“This new entity allows us to better serve our clients in North America while reinforcing our position as a global reinsurer. Peak Re NA will play a vital role in diversifying our portfolio,” Hahn said.
The Bermuda location provides the company with access to a recognized global reinsurance hub and proximity to North American clients. CEO of Peak Re NA, Gene Zhang (pictured above), said the subsidiary is intended to meet the specific needs of regional clients.
“With the extensive support of Peak Re’s global expertise and resources, we are well-positioned to provide innovative and reliable reinsurance solutions to our clients across casualty lines,” Zhang said.
Bermuda’s reinsurance sector has maintained strong performance, particularly in the property and casualty space. In 2023, the market recorded improved combined ratios and stronger net income, supported by favorable rate trends and investment income.
In parallel with the launch of its new subsidiary, Peak Re has also expanded into the insurance-linked securities (ILS) space through the acquisition of Bermuda-based ILS asset manager Lutece.
The formation of Peak Re NA also comes amid increasing demand for tailored casualty solutions in North America. Market participants have focused on adjusting to changing risk profiles, including social inflation and litigation trends.
The creation of the Bermuda-based entity marks the latest development in Peak Re’s expansion beyond its base in Asia. The company views the North American market as an area of strategic importance and plans to continue growing its presence through the newly formed subsidiary.
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