Hong Kong-based global reinsurer Peak Reinsurance Company Limited (Peak Re) now has a 50 per cent stake in NAGICO Holdings Limited (NAGICO), the St. Maarten based regional operating insurer. Peak Re and NAGICO announced the completion of the former’s strategic investment of a 50 per cent stake in NAGICO.
Following its announcement in July last year, the transaction went through all the due diligence and has received all the necessary regulatory and shareholders approvals it was stated in a press release issued by NAGICO.
The strategic investment provides Peak Re with “attractive growth prospects” in the
Caribbean region and is in line with the reinsurer’s strategy to diversify its portfolio globally, the release said.
The acquisition also ties in with Peak Re shareholder International Finance Corporation’s (IFC) strategy, which is committed to strengthening insurance industry development in emerging and developing countries and regions such as the Caribbean.
“At the same time, this investment provides NAGICO with attractive new growth opportunities throughout the Caribbean, adds financial strength which further solidifies and increases its underwriting capacity, and also provides additional value to its brand as one of strongest insurers throughout the Caribbean,” NAGICO said in the release.
Peak Re Chief Executive Officer Franz Josef Hahn said the reinsurer is “delighted” that all regulatory approvals are now in place and that NAGICO can play a significant part in Peak Re’s strategy moving forward. “NAGICO is particularly well-suited for spreading our portfolio risk as its strong focus on the Caribbean provides us with broad access to a region to which we have had little exposure to date. I am confident that this acquisition will offer mutual benefits to both Peak Re and NAGICO, as well as our clients,” Hahn said.
“We see this as a great security for NAGICO’s clients, as it is a powerful partnership with a strongly capitalised international reinsurer. We look forward to Peak Re’s contribution to NAGICO and our clients through effective reinsurance and stronger investment and asset management,” added Chairman of the NAGICO Group Imran McSood Amjad. “NAGICO is well known for its outstanding service to clients and this is something echoed in Peak Re’s profile. It will be a win-win partnership for everyone.” Peak Re is headquartered in Hong Kong with an initial capital base of US $550 million. It is authorized by the Office of the Commissioner of Insurance of Hong Kong and is rated “A-” by A.M. Best, an international insurance industry credit rating agency.