Peak Re renewed Lion Rock Re sidecar at $107m for 2021

Peak Re renewed Lion Rock Re sidecar at $107m for 2021

Hong Kong headquartered international reinsurer Peak Reinsurance Company Limited (Peak Re) has now revealed that it successfully renewed its Lion Rock Re totally collateralised reinsurance sidecar at a larger size of $107 million for 2021. As we reported back in January, Peak Re was in the process of renewing its sidecar vehicle for 2021, as a first almost $15.62 million tranche of Series 2021-1 notes had been released by its Lion Rock Re Ltd. unique purpose automobile.
This noted tranche coming to light independently from the full sidecar renewal statement is common for the structure, having happened a year previously.
Now, Peak Re has reported that the Lion Rock Re Ltd. reinsurance sidecar is some 39% larger this year, with $107 countless capital raised from financiers to support the structure, up from $77 million in 2020.
Peak Res Lion Rock Re reinsurance sidecar supplies the business with access to effective retrocessional capacity from the capital markets, through an aligned threat sharing plan with third-party institutional investors.
Lion Rock Re was the first sidecar transaction from an Asian sponsor and now after repeated issuances is plainly acquiring increasing investor assistance, while playing a significantly crucial function for Peak Re in supporting its organization development.
Peak Res relationships with insurance-linked securities (ILS) investors continue to expand, helped also by the reinsurers acquisition of its own ILS supervisor last year.
The reinsurer first released the Lion Rock Re Ltd. Bermuda domiciled sidecar structure in late 2018, with a $75 million issuance that delivered a piece of its global residential or commercial property disaster reinsurance book to high-quality worldwide financiers in time for the 2019 underwriting year.
Peak Re renewed the Lion Rock Re sidecar for the 2020 underwriting year, with a $77 million Lion Rock Re II issuance that came to market at the beginning of in 2015.
After that 2020 issuance, a $12.32 million tranche of notes that were part of the 2020-1 Lion Rock Re issuance were listed on the Bermuda Stock Exchange (BSX), as Peak Re looked for to provide an involvement in its sidecar vehicle in the noted format an, or a number of, investors required.
So, for 2021, we have actually already reported on the $15.62 million tranche of listed Series 2021-1 notes, however that plainly wasnt the whole issuance, as Lion Rock Re has $107 countless investor assistance for the 2021 underwriting year, Peak Re stated.
Franz Josef Hahn, Chief Executive Officer of Peak Re, commented on the effective sidecar positioning, “ILS has actually ended up being an essential part of Peak Res retrocession strategy, and we have been building up our ILS abilities since the launch of the first sidecar vehicle in 2018. We will continue to supply ingenious options for financiers and bring more capability to narrow the defense space in the emerging middle-class society in Asia.”
Peak Re likewise kept in mind the truth that the market has been more challenging around this renewal, so the truth it has received upsized assistance from ILS financiers is testament to the track-record it is now developing with the Lion Rock Re sidecar, which assures to cement the structure as a core element of the reinsurers capital arrangements.
Aon Securities LLC, in collaboration with Aon Capital Partners, acted as the structuring and placement agent for the Lion Rock Re 2021 renewal deal.
For information of numerous reinsurance sidecar investments and transactions over the history of the ILS market, view our comprehensive list of collateralized reinsurance sidecars transactions.

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