30 April 2025
The Insurance Authority (“IA”) today (30 April 2025) welcomed the issuance of a catastrophe bond involving US$50 million (equivalent to about HK$388 million) sponsored by Peak Reinsurance Company Limited (“Peak Re") covering earthquake risks in Mainland China, Japan and India as well as typhoon risks in Japan. This transaction took place via Black Kite Re Limited1, a special purpose insurer set up by Peak Re back in 2022.
A spokesperson from the IA commented that “The decision by Peak Re to issue a second catastrophe bond in Hong Kong making use of the same infrastructure bears testimony to our growing competitiveness and maturity as an insurance-linked securities (ILS) hub. It is particularly encouraging to see that this transaction aims at tackling a wider range of natural perils, showcasing the tremendous potential of ILS in narrowing protection gaps in the Asia region.”
After a bespoke regulatory regime and the pilot grant scheme2 were introduced in 2021, some US$800 million (equivalent to about HK$6.2 billion) of ILS have been issued from Hong Kong. As announced by the Financial Secretary in his 2025-26 Budget, the grant scheme will be extended for three years until 2028.
Ends
Note:
1 For more details, please refer to a press release issued by the IA on 3 June 2022.
2 For more details, please refer to press releases issued by the IA on 24 February 2021, 3 May 2021, 22 February 2023 and 26 February 2025.