Peak Re reports ‘best-ever’ earnings with $200m in FY’23
Favourable January renewals are seen to sustain strong underwriting margins.
Hong Kong’s Peak Re saw its fiscal year 2023 net profit reach $200m, driven by a strong turnaround in reinsurance underwriting and asset management, it said in a media release.
Reinsurance revenue, on the other hand, dipped 22% year-on-year (YoY) to $1.56b. However, total equity surged 14.3% YoY to $1.28b.
The company saw a solvency ratio of 305%.
“We reached these remarkable milestones in 2023 through decisive actions taken to realign our Property & Casualty (“P&C”) portfolio and unwavering trust and support by our clients,” said Franz-Josef Hahn, CEO of Peak Re.
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The company also said the favourable January renewals point is seen to sustain strong underwriting margins.
“Capital providers remain cautious to expose equity to reinsurance balance sheets due to the persistent trend of costly catastrophic losses. Estimates suggested that insured losses from natural catastrophes exceeded $1-00b for the fourth consecutive year in 2023. Simultaneously, Peak Re expects investment returns to remain steady in 2023 in view of a stable to lower interest rate outlook in 2024.” Peak Re said in the release.