Prudential Financial’s Acquisition of a stake in Peak Reinsurance Holdings Limited


Morgan Stanley acted as exclusive financial advisor to Peak Re on the Transaction. Debevoise & Plimpton LLP advised Prudential Financial, Inc.

A wholly-owned subsidiary of U.S.-headquartered Prudential Financial, Inc. (“PFI”), has signed definitive agreements to purchase a minority stake in Peak Reinsurance Holdings Limited (“Peak Re Holdings”), the sole and direct shareholder of Peak Re via an issuance of new shares (“the Transaction”).

The Transaction marks a further step in the long-term strategic partnership between Fosun International Limited (00656.HK) (together with its affiliates “Fosun”), the largest beneficial shareholder of Peak Re, and PFI (which does business as Pramerica in selected countries outside the U.S), one of the largest insurance groups globally. Fosun and PFI also jointly own and operate a life insurance joint venture in China.

As a rapidly growing international reinsurer based on best in class underwriting and risk management, Peak Re will benefit from this investment to support its continued growth.

In the run-up to the Transaction, the shares of Peak Re Holdings held by International Finance Corporation (“IFC”), a member of the World Bank Group, were purchased by Fosun, in view of IFC’s continuing focus on emerging markets and Peak Re’s emergence as a globally-diversified reinsurer with strong positions in developed markets including the Americas and Europe.

The final consideration is subject to closing adjustments. Following the closing of the Transaction, Fosun and PFI, will hold 86.9% and 13.1% of Peak Re via Peak Re Holdings, respectively.

The Transaction is subject to customary closing conditions and completion of regulatory procedures with relevant regulators.

Peak Re is headquartered in Hong Kong with shareholder funds of US$909.0 million as of June 30, 2017. It is authorized by the Insurance Authority of Hong Kong and rated “A-” by A.M. Best. Peak Re offers reinsurance services covering a range of lines across Asia Pacific, EMEA and Americas, tailor-making risk transfer and capital management solutions to best fit clients’ needs.

Prudential Financial, Inc., a financial services leader with more than $1 trillion of assets under management as of December 31, 2017, has operations in the United States, Asia, Europe, and Latin America.

Debevoise & Plimpton LLP advised Prudential Financial, Inc. with a team including E. Drew Dutton (Picture) John M. Vasily, Clare Swirski. Angela W. Lee and Jayne Chi-Wing So.

Involved fees earner: Drew Dutton – Debevoise & Plimpton; John Vasily – Debevoise & Plimpton; Clare Swirski – Debevoise & Plimpton; Angela Lee – Debevoise & Plimpton; Jayne Chi-Wing So – Debevoise & Plimpton;

Law Firms: Debevoise & Plimpton;

Clients: Prudential;

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Author: Michael Patrini