Peak Reinsurance (Peak Re) has announced that it has completed the issuance of US$350 million in perpetual subordinated guaranteed capital securities at a coupon rate of 5.625%.
The securities were issued by Peak Re (BVI) Holding Limited, a wholly owned subsidiary, and are unconditionally and irrevocably guaranteed by Peak Re, which holds an A- (Stable) rating from AM Best and a Baa1 (Positive) rating from Moody’s.
The new issuance follows the full redemption on October 28, of US$250 million in perpetual subordinated guaranteed capital securities that were originally issued in 2020. Peak Re stated that the new securities will strengthen its capital base, enhance underwriting capacity, and support its long-term growth strategy.
The company described the hybrid structure as providing cost-efficient capital, complementing its conservative balance sheet, supporting ratings resilience, and preserving financial flexibility through different market cycles.
Franz-Josef Hahn, chief executive officer of Peak Re, said, “This successful transaction adds durable capital and strengthens our capacity to support clients through the cycle.” He added that the outcome affirms market confidence in Peak Re and enhances the company’s resilience as it continues to deliver solutions to clients worldwide.
BNP Paribas, HSBC, and Deutsche Bank acted as joint global coordinators, joint bookrunners, and joint lead managers for the transaction. ING, MUFG, Société Générale, and Standard Chartered Bank also participated as joint bookrunners and joint lead managers.
The capital raise comes during a period of significant corporate activity for Peak Re. In October, the company maintained its A- rating from AM Best after announcing that funds managed by KKR and Quadrantis Capital would acquire minority stakes. These investments, expected to close by year-end, will see Fosun International remain the majority shareholder.
KKR and Quadrantis Capital moved to acquire minority stakes following the exit of Prudential Financial, which previously held a 13.07% interest. Peak Re said the new partnership is not expected to impact its financial stability, operations, or leadership.
Since beginning operations in 2012, the company has developed a diversified reinsurance platform serving clients in both life & health and property & casualty lines.
