Lutece, which is an insurance-linked securities (ILS) asset manager based in Bermuda, has now become a fully-owned subsidiary of the reinsurance group

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Peak Re completes acquisition of Lutece. (Credit: Pete Linforth from Pixabay)

Hong Kong-based reinsurer Peak Reinsurance (Peak Re) has wrapped up its previously announced acquisition of Lutece and its subsidiary Lutece Investment Management.

Financial terms of the acquisition, announced in April 2020, remained to be undisclosed. It was wrapped up following the meeting of customary closing conditions, which include the receipt of regulatory approvals.

Lutece, which is an insurance-linked securities (ILS) asset manager based in Bermuda, has now become a fully-owned subsidiary of the reinsurance group. The ILS asset manager, which was founded in 2017, has been renamed as Peak Capital Holdings.

Regulated by the Bermuda Monetary Authority, the ILS asset manager is focused on yielding attractive returns based on the risk/return appetite of its investor base within the insurance-linked investments sector. As per Peak Re, the company is said to be known currently in the ILS market for operating a very specific and targeted retro strategy.

Lutece’s acquisition is expected to give the reinsurance group a platform to expand into other areas of the ILS market.

Lutece Investment Management, on the other hand, has been renamed as Peak Capital.

Erik Manning, the founder of the ILS asset manager, and Lawrence Cheng, who is Peak Re’s managing director of underwriting, have been named as co-CEOs of Peak Capital.

Peak Re CEO comments on the Lutece transaction

Peak Re CEO Franz Josef Hahn said: “This is a team of top-tier professionals with strong ILS and structuring expertise, combined with in-depth insights into the Asian markets.

“Under the leadership of Erik and Lawrence, Peak Capital will create new opportunities to develop differentiated and innovative (re)insurance products to both our customers and investors, and eventually expedite Peak Re’s mission to closing the protection gap in Asia.”