The Insurance Authority ("IA") welcomed the issuance of a US$50 million catastrophe bond by Peak Reinsurance Company Limited, covering earthquake and typhoon risks in Asia. This second issuance is part of a growing trend of insurance-linked securities ("ILS") in Hong Kong.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On 30 April 2025, the Insurance Authority ("IA") announced the issuance of a catastrophe bond by Peak Reinsurance Company Limited (Peak Re) totaling US$50 million (equivalent to approximately HK$388 million).
The bond, arranged through Black Kite Re Limited, a special-purpose insurer created by Peak Re in 2022, provides protection against earthquake risks in Mainland China, Japan, and India, as well as typhoon risks in Japan.
The IA's spokesperson underscored the significance of this transaction, highlighting the increasing competitiveness and maturity of Hong Kong as an ILS hub and the potential of ILS in addressing regional protection gaps.
Since the introduction of a bespoke regulatory regime and a pilot grant scheme in 2021, a total of US$800 million (approximately HK$6.2 billion) in ILS has been issued from Hong Kong.
The grant scheme has been extended for an additional three years, until 2028, as part of the 2025-26 Budget announcement.
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