Peak Reinsurance Company (Peak Re) and its Zurich-based subsidiary, Peak Reinsurance AG have maintained their financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” from insurance credit ratings agency A.M. Best.
The outlook of the credit ratings of both companies is stable.
According to a statement by Peak Re, the ratings reflect its very strong balance sheet, as well as its operating performance, business profile, and enterprise risk management. The rating agency emphasized the reinsurer’s robust risk-adjusted capitalisation, a strengthening trend in its capital and surplus, its controlled level of net underwriting leverage, and an improvement in its overall investment risk profile, as well as its strong liquidity.
Peak Re added that its investment results have been favourable over the past five years, supported by a growing stream of interest and dividend income from debt and listed equity investments. The rating agency also noted that Peak Re continues to diversify its business portfolio. While the business mix is primarily focused on non-life business, the company further expands its life and health business, namely in the area of medical reimbursement.
A.M. Best also recognised that Peak Re consistently reported favourable operating results over the past five years, as reflected in its stable and lower-than-average management expense ratio.
Peak Re is now 34th in A.M. Best’s annual ranking of the top 50 Global Reinsurance Groups, up nine places over the past two years.
