Fosun subsidiary completes acquisition of 50% stake in Caribbean insurer NAGICO Holdings

Date: 08 Sep 2016

Source: Bahamas Local.com

Peak Reinsurance Company Limited - a Hong Kong headquartered reinsurance company with an initial capital base of $550 million - recently completed negotiations to acquire a 50 percent stake in the Caribbean's leading private general insurer known as NAGICO Holdings Limited (NAGICO).

A NAGICO press statement said, "This 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 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."

NAGICO is regulated within a total of 19 jurisdictions throughout the Caribbean region, including The Bahamas. The insurance group is the largest privately owned general insurer in the region with equity of US$100 million.

Peak Re is in the business of reinsurance, which occurs when multiple insurance companies purchase insurance policies from other insurers to limit risk.

The reinsurance company is backed by Fosun International Limited and the International Finance Corporation, a member of the World Bank Group, which has respectively invested 85.1 percent and 14.9 percent in the company.

In 2015, Peak Re's profit for the year-end was $59.16 million, gross written premiums stood at $582.62 million, and its shareholder equity was $716.86 million.

According to the company's 2015 annual report, "Peak Re expects the current market environment to remain largely unchanged in 2016. Supply in global reinsurance markets is set to continue to exceed demand. The competitive pressure is likely to be compounded by slow economic growth in both emerging markets, where the best to expect is stabilization, and mature markets, where robust economic growth at pre-crisis levels remains elusive."

CEO of Peak Re Franz Josef Hahn said, "We are 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."

Chairman of the NAGICO Group Imran McSood Amjad said, We see this as a great security for NAGICO's clients, as it is a powerful partnership with a strongly capitalized international reinsurer.

"We look forward to Peak Re's contribution to NAGICO and our clients through effective reinsurance and stronger investment and asset management. 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."

Disclaimer
The information on this page may have been provided by a contributor to ChinaGoAbroad, and ChinaGoAbroad makes no guarantees about the accuracy of any content. All content shall be used for informational purposes only. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting such content (including texts, pictures, photos and diagrams) to ChinaGoAbroad for publication. ChinaGoAbroad disclaims all liability arising from the publication of any content/information (such as texts, pictures, photos and diagrams that infringe on any copyright) received from contributors. Links may direct to third party sites out of the control of ChinaGoAbroad, and such links shall not be considered an endorsement by ChinaGoAbroad of any information contained on such third party sites. Please refer to our Disclaimer for more details.
Top