Source: insurancebusinessmag.com

Peak Reinsurance Company has announced its financial results for the full year ending Dec. 31, 2024, recording a net profit after tax of US$187 million. The result marks the second-highest annual profit in the company’s 12-year history.

Return on adjusted equity stood at 15.7%, while total equity increased to US$1.43 billion, supported by underwriting and investment performance across business lines. Gross written premiums remained steady at US$1.76 billion, with reinsurance revenue of US$1.16 billion. Reinsurance service results totaled US$144 million, and the company reported a solvency ratio of 186%.

The company’s property and casualty (P&C) portfolio restructuring, which began in 2022, continued to shape underwriting results. The shift toward non-proportional coverages and higher excess-of-loss layers helped mitigate exposure to natural catastrophe losses in 2024. This approach contributed to a reduced combined ratio of 84%, down from 87.3% the prior year. Peak Re also expanded its presence in the US small and mid-sized enterprise market, particularly in casualty and cyber risks, through its Bermuda platform.

In its life and health (L&H) segment, Peak Re generated US$405 million in gross written premiums, accounting for 23% of the overall reinsurance portfolio. Although this was a slight decline from the previous year, the company reaffirmed its long-term commitment to this business line. Peak Re’s L&H operations span China, India, Vietnam, Indonesia, and the Middle East, focusing on tailored solutions based on local market conditions such as demographic and regulatory changes.

Investment income reached US$122 million, yielding 3.6% on assets under management of US$3.33 billion at year-end, up from US$3.12 billion in 2023. The company’s investment portfolio remains concentrated in high-quality, short-duration fixed-income assets.

Previously, Peak Re also reported record net profits for 2023, totaling US$200 million despite the year’s significant market challenges. This performance marks a notable improvement, supported by a turnaround in reinsurance underwriting and asset management, which drove the company’s total equity up by 14.3% from 2022, reaching US$1.28 billion.

In 2024, the company built on its business franchise and diversified its reinsurance portfolio both geographically and across lines of business. Peak Re’s economic value – defined as the sum of net asset value and contractual service margin – was reported at US$1.58 billion.

In August 2024, AM Best reaffirmed Peak Re’s Financial Strength Rating of A- and revised its outlook to stable, reflecting its capital position and operational profile.

Global reinsurance capital stood at US$607 billion entering the year. Peak Re expects continued demand for reinsurance capacity in 2025 despite ongoing volatility, including events such as the California wildfires. The company retained and expanded more than 80% of client relationships at the January renewals. Peak Re continued investments in digital infrastructure and analytics capabilities. The company noted improvements in underwriting efficiency through enhanced automation and data tools.