SIRC: Stay disciplined and stay diligent, Peak Re’s Hahn says

November 4 2025 by

In the upcoming renewals, reinsurers show a preparedness to be flexible to a certain extent, but not to destroy the structures that have been built up since 2023, according to Franz-Josef Hahn, CEO of Peak Re.

“We cannot cling on to 2023 as a reinsurance industry, while our capacity is growing to historical heights,” Hahn said. “There is a strong interest among reinsurers to grow.

“On the property cat side, globally, reinsurers are prepared to see a slight reduction of rates, as long as it is rectified on risk-adjusted basis. But the structures which have been built in the years 2022, 2023 will remain – higher deductibles for the direct markets.”

While he said there is room for flexibility on pricing, Hahn added: “We have seen slight reductions last year already, but there will be a limit and risk adjustment is the key.

“I think the message is to stay disciplined both on the direct and on the reinsurance side. Stay disciplined and stay diligent.

“Certainly, there is a preparedness to get into discussions with our clients and to see what they need and to help them in finding the right solution.

“We try to understand what the pressure point is and we try to find ways we need to support them.”

“We're very happy with the way we are operating. I don't think that we will bring too many changes to our existing book. We will want to grow the book as we have.”

Franz-Josef Hahn, Peak Re

However, Hahn noted that though the reinsurer had pulled out from aggregate structures a few years ago, it is now prepared to do aggregates, “but there needs to be a sufficient deductible and sufficient pricing in order to get into aggregate risks”.

There is also a strong desire infor full transparency, he noted.

“Data today is much more important than ever before. And insurance companies want to see the full transparency of what is ahead,” he added.

“Technology definitely has helped. But also in general terms, reinsurers don’t accept risk blindly. And they want to have a full set of information given. And they would request this even from smaller companies.”

With the softer direct market and the demand for commissions, the reinsurance will definitely react.

“Reinsurers want to see full transparency before they can allow flexibility on terms,” he emphasised.

Peak Re strategy

Expanding on the Hong Kong-based reinsurer’s plans, Hahn said that in general, Peak Re is very happy to expand on the basis of what we have with our existing long-term clients.

“Discipline of underwriting and client relationships plays a big role because with the existing clients, we know exactly who we have and whom we want to deal with,” he said.

“We are not going to be everything for everybody.

“We’re very happy with the way we are operating. I don’t think that we will bring too many changes to our existing book. We will want to grow the book as we have.”

Personal lines play a big role in Peak Re’s portfolio following a restructuring in 2023, he said.

Discussing the reinsurer’s portfolio approach, Hahn said, “property and cat business was reduced in our total portfolio in order to rectify what we wanted to do in our appetite”.

“Casualty business has been growing, motor business has been growing, and personal accident and life have been growing. But the largest lines are still property and casualty, and they are the dominant lines all the way through. As well as credit and bond,” he added.

Structured solutions

“What we have introduced in 2024 is structured solutions for P&C business, which started on the life side in 2023. And that will be a strong driver of our life book as well as our P&C book,” Hahn noted.

These are solvency deals, very often low volatility, but capital effective for clients.

“I think they give more opportunities and leverage long-term relationships and partnerships, which we have because it’s rounding up the opportunities which we have for our clients,” he added.

“So it’s an additional and a very strategically important issue to be involved in it.”

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