AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of "a-" of Peak Reinsurance Company Limited (Peak Re) (Hong Kong) and its subsidiary, Peak Reinsurance AG (Switzerland), remain unchanged following the disclosure of an issuance of perpetual subordinated guaranteed capital securities (securities).
These securities will be issued by Peak Re (BVI) Holding Limited and be unconditionally and irrevocably guaranteed on a subordinated basis by Peak Re. The target amount to be raised from the issuance is approximately USD 250 million. Distributions are payable semi-annually at a rate of 5.35% per annum and the securities are non-callable within the first five years.
AM Best currently categorises Peak Re’s balance sheet strength as very strong. The company’s capital and surplus has grown at a compound average growth rate of 9.7% during the five-year period from 2015 to 2019, driven by capital injections from Peak Re’s shareholders and full earnings retention during the period. AM Best views the issuance to further strengthen Peak Re’s risk-adjusted capitalisation over the intermediate term and at the current rating level. It also demonstrates Peak Re’s improved level of financial flexibility and ability to access diversified capital resources. Given the expanded balance sheet, AM Best expects the company to continue to uphold a prudent approach toward business expansion, asset allocation and risk selection.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201021005688/en/
Associate Director, Analytics
+852 2827 3418
Senior Director, Analytics
+852 2827 3413
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5644