Specialty insurer and reinsurer, MS Amlin Underwriting Limited (MS AUL), has returned to the capital markets for its second Asia focused collateralised reinsurance sidecar arrangement, with a $37.5 million special purpose reinsurance vehicle (SPRV); Phoenix 2 Re Pte. Ltd.
Launched by MS AUL’s Singapore-based business, MS Amlin Asia Pacific Pte. Ltd. (MS AAP), this SPRV is a repeat of the 2021 issuance; $42 million Phoenix 1 Re Pte. Ltd.
The second Asia focused reinsurance insurance-linked securities (ILS) offering from MS Amlin will provide a quota share to MS AAP for its select reinsurance portfolio underwritten via its platform in Singapore.
In order to secure the $37.5 million of collateralised reinsurance capacity, MS AAP worked alongside the Monetary Authority of Singapore (MAS) to establish Phoenix 2 Re, leveraging the region’s ILS catastrophe bond grant.
MS AAP also worked in conjunction with Hong Kong-based ILS Advisers, part of the HSZ Group.
The collateralised reinsurance capacity was secured through various Asian investors.
Chief Executive Officer (CEO) of MS Amlin Asia Pacific Pte. Ltd., Will Ho, commented: “We are pleased to have secured capital for Phoenix 2 Re during a challenging time for fundraising, a testament to our financial soundness, robust risk management systems, and reputation.
“This launch is a natural continuation of our first SPRV and highlights our commitment to the region, as well as source innovative ways to cultivate relationships with capital market partners.
“We are delighted to have launched another ILS offering with the help of HSZ and are thankful for the support provided by everyone involved, in particular to MAS and Lloyd’s Asia for their continued support to us in this space.”
Tim Yip, Executive Director, ILS Advisers, added: “In 2021, Phoenix 1 Re showed the value that thoughtful and creative access to a new set of independent and diversified perils can provide to ILS investors, especially in yet another year where many faced a string of significant natural catastrophe losses from the more traditionally accessed parts of the world.
“We were very pleased to work with MS Amlin Asia Pacific again, helping them arrange their latest investment opportunity focused on the emerging Asia region, and to support their goal of providing products and innovative solutions required for a region facing a large and ever-growing insurance protection gap.
“With Phoenix 2 Re successfully issued out of Singapore, this continues to demonstrate Singapore’s value as an entry point for capital, to support the growing needs of the region.”
