Explore how Peak Re navigated a tough year with resilience, demonstrating strength and adaptability in the face of challenges.
Amidst a challenging global landscape in 2024, Hong Kong-based global reinsurer Peak Re reported a 6.7% decrease in net profit, totaling USD 187 million. This decline is highlighted in the annual results shared by its parent company, Fosun International.
Despite the profit dip, Peak Re’s gross written premiums (GWP) displayed resilience with a 0.1% year-on-year increase, reaching USD 1.763 billion. This growth underscores the company’s commitment to a disciplined underwriting approach.
The year 2024 saw Peak Re’s revenue fall to USD 1.156 billion, a 25.7% decrease from the previous year. This decline was primarily due to higher premiums earned in 2023.
In a testament to its financial stability, AM Best reaffirmed Peak Re’s rating at A- (Excellent), while revising its outlook to stable. This rating reflects the company’s solid financial position and effective enterprise risk management.
A Peak Re spokesperson commented, “Amid the opportunities and challenges in 2024, Peak Reinsurance maintained its solid momentum in the dynamic global insurance market, marking another successful year.” They further added, “Despite increasing claims from global catastrophes, our business performance remained robust, thanks to strong underwriting and a favorable pricing environment.”
The company also emphasized the positive growth of its Life and Health reinsurance sector, including Short Term Health, which contributed significantly to its diversification and business expansion.
Peak Re’s net assets saw an increase of 11.7%, reaching USD 1.43 billion by the end of the reporting period, up from USD 1.28 billion at the close of 2023. This growth signifies a firm solvency level.
As Peak Re looks towards 2025, the company aims to maintain its focus on disciplined underwriting and client-centric solutions. The reinsurer plans to strengthen strategic client relationships and enhance its presence in high-growth markets, ensuring a well-diversified portfolio aligned with its long-term strategy.
In 2024, Fosun, the majority shareholder of Peak Re, achieved a total revenue of RMB192.14 billion (approximately USD 26.5 billion), with an industrial operation profit of RMB4.9 billion (approximately USD 675 million).
Revenue from Fosun’s four core subsidiaries amounted to RMB134.65 billion (approximately USD 18.5 billion), accounting for 70.1% of the group’s total revenue.
Guo Guangchang, Chairman of Fosun International, remarked, “We believe that clear strategic focus and robust operational capabilities are crucial for driving long-term steady development. By leveraging our globalization and innovation strengths, we can create stable value for our shareholders, even in a challenging environment.”
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