Clifford Chance advises Peak Re on its capital issuance under new Hong Kong regime

Global law firm Clifford Chance has advised global reinsurer Peak Reinsurance Company Limited (Peak Re) on the successful issuance of US$350 million Perpetual Subordinated Guaranteed Capital Securities by Peak Re (BVI) Holding Limited, unconditionally and irrevocably guaranteed by Peak Re.

This transaction marks a significant milestone for the Hong Kong insurance sector, representing the first public issuance of regulatory capital by Peak Re under the new Insurance (Valuation and Capital) Rules, following the introduction of updated Risk-based Capital (RBC) requirements for insurers on 1 July 2024. These new rules align Hong Kong with international standards and require (re)insurers to hold enough capital to match their risk profiles.

Lead partner Mark Chan said, “We are delighted to have worked closely with Peak Re and the joint lead managers to help bring this important deal to market. This highlights our expertise in the insurance sector advising Hong Kong (re)insurers under both the Insurance (Group Capital) Rules and the Insurance (Valuation and Capital) Rules, respectively.”

Mark was supported by counsel Torrance Shi, senior associate George Mok, associates Louis Yee and Christine Chan, and trainee solicitor Kristy Lam.