Peak Re expands ILS business with Bermuda acquisition

Hong Kong-based reinsurer Peak Reinsurance Company (Peak Re) is expanding its presence in the insurance-linked securities (ILS) market with the acquisition of Bermuda-based ILS asset manager Lutece.

Peak Re has entered into definitive agreements to acquire 100 percent of the capital of Lutece Holdings and its subsidiary Lutece Investment Management. The transaction is subject to regulatory procedures.

Lutece was founded in 2017 by industry veterans Erik Manning and Angus Ayliffe, each with decades of experience in reinsurance and ILS. Lutece is currently known in the ILS market for operating a very specific and targeted retro strategy; however, going forward Lutece will provide Peak Re with a platform for expansion into other areas of the ILS market.

Lutece Investment Management will be renamed Peak Capital and will become a fully owned subsidiary of Peak Re.

Peak Re launched Asia’s first reinsurance sidecar transaction, Lion Rock Re, in 2018. It was upsized at the end of 2019 with investor support. The acquisition of Lutece is expected to enhance Peak Re’s capabilities and expand its ILS product suite.

“The acquisition of Lutece carries Peak Re forward in its aspirations in ILS by bringing Lutece’s expertise in house. This will definitely be accretive to our capabilities in capital and third party capital management,” said Peak RE CEO Franz Josef Hahn.

“We see opportunities from growing Asian risk exposures – Lutece’s professionals with ILS and structuring expertise, combined with Peak Re’s strong underwriting and operating franchise, will create new avenues for us to innovate for both customers and investors, working towards our ambition of narrowing the protection gap in Asia.”

Lutece CEO Erik Manning said: “We are delighted to become a part of Peak Re and look forward to bringing our assets and areas of expertise to help strengthen Peak Re’s platform. Peak Re’s analytical-underwriting model is very much in keeping with the culture of Lutece, and with that foundation we are looking forward to helping to expand Peak Re’s ILS footprint.”