MS Amlin sets milestone in Singapore with first-ever cat bond renewal, Phoenix Re 2
Lloyd’s global specialty re/insurer MS Amlin has returned to the insurance-linked securities (ILS) market with its reinsurance sidecar vehicle Phoenix 2 Re, marking Singapore’s first ever catastrophe bond renewal.
MS Amlin has secured collateralised capacity through a number of investors worldwide to renew its local special purpose reinsurance vehicle (SPRV), Phoenix 2 Re. The move is part of its strategy to expand in the attractive Asian ILS market.
The company said that against the backdrop of the challenging natural disaster risk environment in Asia, the region’s first catastrophe bond renewal will allow for more capacity to the local market, as well as increased reinsurance capacity for insurers, enabling more natural catastrophe cover to be written.
MS AAP worked in conjunction with the Monetary Authority of Singapore (MAS), to originally establish Phoenix 2 Re in 2022, using an ILS catastrophe bond grant, alongside Hong Kong-based ILS specialist ILS Advisers, part of the HSZ Group.
Following the renewal of Phoenix 2 Re, MS APP now has four vehicles in its series – Phoenix 1,2,3 and the renewed Phoenix 2 Re (2024), giving it over $80 million capacity to support local Asian cedents.
Will Ho, CEO, MS Amlin Asia Pacific Pte, said: “We are excited to have completed Singapore’s first ever catastrophe bond renewal, and our fourth transaction in the Phoenix Re series. This milestone confirms our commitment to Singapore’s expanding ILS market, and highlights the hub’s growing importance as a conduit for investment in Asia. We see strong growth opportunities in the region’s attractive ILS market, and have ambitious plans to further expand our Phoenix Re series. We are also exploring other Singapore-based risk transfer solutions to support global investors, increase insurance capacity in Asia, and help close the region’s insurance protection gap.”
Tim Yip, head of ILS, ILS Advisers, said: “We are delighted to have been able to provide our ongoing support, alongside the Monetary Authority of Singapore (MAS), to MS Amlin as they further their leadership role in expanding the Asia ILS market with the launch of their fourth Phoenix series. It is extremely rewarding that not only have the majority of investors renewed their commitment to the programme, but also to welcome new investors who have contributed additional capacity, demonstrating confidence in this opportunistic and promising region.”
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