Peak Re upsizes Lion Rock Re sidecar transaction

Peak Re, the Hong Kong-based reinsurer, has increased capacity in Lion Rock Re II, its reinsurance sidecar that follows up Asia’s first sidecar transaction last year.

Peak Re upsized the Lion Rock Re transaction to $77 million, taking in investment from global investors, in a move it hopes will put Hong Kong on the map for ILS investors. Lion Rock Re II enters into an exclusive quota share arrangement with Peak Re to reinsure part of Peak Re’s global property reinsurance portfolio.

Franz Josef Hahn, chief executive officer of Peak Re, said the company wanted to modernise reinsurance and extend the reach of insurance and reinsurance in Asia.

“We said that last year was a milestone for the reinsurance market in Hong Kong, but the confidence shown in Lion Rock Re II really shows that Hong Kong can become a hub for ILS investors,” Hahn said.

Lawrence Cheng, managing director of underwriting at Peak Re, said the company had always planned to create a sidecar, and pledged the company would work hard to develop its relationships with ILS managers and investors.

“The judicious allocation of risk to Lion Rock Re through 2019 certainly helped us to deliver returns for investors,” Cheng added.