.jpg)
A subsidiary of Prudential Financial Inc. (PFI) has purchased a 13.1% stake in Hong Kong-based Peak Reinsurance Holdings Ltd (Peak Re), the reinsurer has announced.
Pending customary closing conditions and completion of regulatory procedures, the transaction of undisclosed value will result in Fosun and PFI holding 86.9% and 13.1% of Peak Re, respectively.
According to Peak Re, this is the next step in the long-term strategic relationship between Fosun International Ltd, Peak Re’s parent firm, and PFI, which is also known as Pramerica in several markets outside of the US. Fosun and PFI also have a life insurance joint venture in mainland China.
Prior to the deal, Fosun purchased Peak Re shares held by International Finance Corporation (IFC), a member of the World Bank Group. This is in line with IFC’s focus on emerging markets, while Peak Re is already expanding into developed markets in Europe and the Americas.
Franz-Josef Hahn, chief executive officer of Peak Re, commented: “We want to thank Fosun and International Finance Corporation for supporting this successful venture and are pleased to welcome PFI as a new investor as we continue to build Peak Re into a leading global reinsurer.”
Morgan Stanley acted as exclusive financial advisor to Peak Re for this transaction.
Related stories:
Prudential Financial and Scottish Widows in longevity reinsurance deal
Global reinsurers to face rocky waters
Prudential sees huge profit slump
