Press Release - FEBRUARY 13, 2018
A.M. Best Comments on Credit Ratings of Peak Reinsurance Company Limited and Its Subsidiary Following Announced Transaction
FOR IMMEDIATE RELEASE
HONG KONG - FEBRUARY 13, 2018
Subsequent to signing the definitive agreements in connection with the transaction, Fosun International Limited (Fosun) had indirectly acquired the entire stake in Peak Re Holdings held by International Finance Corporation, which has temporarily increased Fosun’s ownership of Peak Re Holdings to 100% before the closing of the transaction. While the final consideration is subject to closing adjustments, A.M. Best expects the transaction to increase Peak Re Holding’s total capital. The transaction is pending regulatory procedures and other customary closing conditions. Once these occur, Fosun and PFI will indirectly hold 86.9% and 13.1% of the shares in Peak Re, via Peak Re Holdings, respectively.
While the impact to Peak Re’s balance sheet strength is expected to be positive, A.M. Best expects that the new capital injected by PFI through this transaction will be used to support the continued business growth and maintain a risk-adjusted capitalization supportive of Peak Re’s current ratings. Peak Re also may benefit from PFI’s global insurance expertise and profile in the long run.
A.M. Best will further assess the impact on the rating fundamentals and strategic direction of Peak Re and its subsidiaries following the closing of the transaction.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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