The Hong Kong Insurance Authority has welcomed a second catastrophe bond sponsored by local reinsurer Peak Reinsurance Company Limited, a US$50 million transaction that broadens the range of natural peril risks covered through Hong Kong’s insurance-linked securities market. The bond was issued via Black Kite Re Limited, a special purpose insurer established by Peak Re in 2022, and covers earthquake risks in Mainland China, Japan and India as well as typhoon risks in Japan. The Insurance Authority noted that, following the introduction of a bespoke regulatory regime and a pilot grant scheme in 2021, around US$800 million of insurance-linked securities have been issued from Hong Kong, and referenced the Financial Secretary’s 2025-26 Budget announcement that the grant scheme will be extended for three years until 2028.
Hong Kong Insurance Authority 2025-04-30
Hong Kong Insurance Authority welcomes Peak Re’s second US$50 million catastrophe bond issuance in Hong Kong
The Hong Kong Insurance Authority has endorsed a second catastrophe bond by Peak Reinsurance Company Limited, a USD 50 million issuance expanding coverage of natural peril risks in Hong Kong’s insurance-linked securities market. Issued via Black Kite Re Limited, the bond covers earthquake risks in Mainland China, Japan, and India, and typhoon risks in Japan. Since 2021, about USD 800 million in insurance-linked securities have been issued from Hong Kong, with a grant scheme extended until 2028.