Peak Re remediation hacks 23 points from combined ratio in 2023
Peak Re peeled nearly 23 points off of its combined ratio to 87.3% via the overhaul of its reinsurance portfolio, on its way to what it called a record high profit of $200 million in 2023.
“We reached these remarkable milestones in 2023 through the decisive actions taken to realign our Property & Casualty portfolio and unwavering trust and support by our clients,” CEO Franz-Josef Hahn said.
Peak Re cited its 2023 efforts to suppress or avoid frequency and severity of property cat risks while moving away from “soft-market structures” such as quota share reinsurance with wide loss corridors and multi-risk aggregates. As elsewhere in the industry, XoL deals with heightened attachment points and remote layers became the rule.
Those shifts towards profit meant a reduction in top-line measures. Reinsurance revenues, IFRS17's margin-inclusive top line measure, came down 14.6% year on year to $1.56 billion.
Having jolted its way back to profit, Peak Re now predicts stability. 2024 should bring “sustained strong technical results driven by rigorous risk selection and prudent underwriting,” management said.
The life & health business enjoyed unspecified “enhanced profitability” amid a massive surge in GWP to $438 million in 2023 from $270 million in 2022, part and parcel with Peak Re's “revenue and diversification objective.”
Together with $114 million in investment income alongside a 6% rise in AuM, Peak Re rolled on to what it called its “best-ever net profit” at $200 million.
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