Peak Re completes Lutece acquisition, rebranding

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Peak Reinsurance Company Ltd (Peak Re) has completed the acquisition of Lutece Holdings Ltd and subsidiary Lutece Investment Management Ltd.

The two acquired entities will be rebranded as Peak Capital Holdings Ltd and Peak Capital Ltd, respectively.

Following the transaction, the Bermuda-based ILS investment specialist is now a wholly owned subsidiary of Peak Re, the reinsurer said in a statement, having fulfilled all customary closing conditions, including the receipt of regulatory approvals.

ILS veteran and Lutece founder Erik Manning, and Peak Re’s managing director of underwriting, Lawrence Cheng, have been named co-CEOs of Peak Capital. Angus Ayliffe and Julia Henderson from the original Lutece team continue in their roles as chief financial officer and chief underwriting officer, respectively, of Peak Capital.

“This is a team of top-tier professionals with strong ILS and structuring expertise, combined with in-depth insights into the Asian markets,” said Peak Re CEO Franz Josef Hahn. “Under the leadership of Erik and Lawrence, Peak Capital will create new opportunities to develop differentiated and innovative re/insurance products to both our customers and investors, and eventually expedite Peak Re’s mission to close the protection gap in Asia.”

Meanwhile, Peak Re reported its results for the full year 2019, with gross written premiums of US$1.7 billion – up 20% year-on-year.

The company’s net profit was US$35 billion, rebounding from 2018, when net profit dropped to US$19.5 million down from US$30.5 million in 2017. The recovery was attributed by the company to “strong underwriting performance and effective risk management.”

Total assets grew from US$3.75 billion in 2018 to US$4.4 billion in 2019. Solvency ratio was 367% and the administrative expense ratio was 3.4%.

“2019 is best characterised as a balanced year,” said Hahn. “While the global reinsurance industry was affected by the recurring number of natural catastrophes and rates hit the bottom of the pricing cycle, we have adopted a fresh perspective that allowed Peak Re to weather these uncertainties well, demonstrating the inherent resilience in our business model as well as our ability to seize opportunities as they arise.”

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