MS Amlin launches $37.5m Asian reinsurance sidecar amid ‘challenging’ time

Lloyd’s global specialty re/insurer  MS Amlin Underwriting (MS AUL) has returned to the ILS market with the launch of its second special purpose reinsurance vehicle (SPRV) Phoenix 2 Re, which is solely focused on pan-Asian property catastrophe risks. The sidecar has secured $37.5 million of collateralised capacity through a number of Asia-based investors during a “challenging time for fundraising”.

MS Amlin’s Singapore-based subsidiary MS Amlin Asia Pacific (MS AAP) worked in conjunction with the Monetary Authority of Singapore (MAS), to establish Phoenix 2 Re, using an insurance-linked securities (ILS) catastrophe bond grant, alongside Hong Kong-based ILS specialist ILS Advisers, part of the HSZ Group.

The SPRV will provide a quota share to MS AAP for its select reinsurance portfolio written via its underwriting platform in Singapore, and complements its landmark SPRV, Phoenix 1 Re, in terms of ceded business and structure.

Will Ho, chief executive officer of MS Amlin Asia Pacific Pte said: “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.”

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