Peak Re sponsors $50 million cat bond covering Japan, China and India

By Henry Gale

April 30 - (The Insurer) - Hong Kong-based reinsurer Peak Re has issued its second catastrophe bond, securing $50 million of retrocessional protection against earthquake risk in Japan, China and India and typhoon risk in Japan.

The Black Kite Re 2025-1 bond uses an industry loss trigger for earthquake and typhoon risks in Japan, while coverage for earthquakes in China and India is provided on a parametric basis. The reinsurer said it was the first 144A cat bond to cover risks in India.

Peak Re CEO Franz-Josef Hahn said the transaction's combination of developed and emerging markets provided diversification and would strengthen its clients' resilience.

Head of global retrocession Sascha Bruns said: “This structure integrates the security of a fully collateralised retrocession with the efficiency and rapid response of parametric triggers, which benefits both Peak Re and ultimately our cedants.”

GC Securities was structuring agent and bookrunner for the transaction, while Mercer Investments (HK) Limited acted as structuring agent and co-manager with respect to qualified Hong Kong investors.

Peak Re's first cat bond, issued in 2022, covered $150 million of Japanese typhoon risk. At the time the company said it was the first to be issued by a Hong Kong-based special purpose insurer. Peak Re said its second bond is the first time such a vehicle has been reused for a second issuance.