MS Amlin APAC renews Phoenix Re sidecar

MS Amlin Asia Pacific has launched a local special purpose reinsurance vehicle (SPRV); Phoenix 3 Re, for the third year in a row.

Phoenix 3 Re will provide a quota share to MS AAP for its select reinsurance portfolio written via its underwriting platform in Singapore, and complements existing SPRV, Phoenix 2 Re, in terms of ceded business and structure.

Phoenix 3 Re has secured over $45m of collateralised capacity, more than its predecessors Phoenix 1 Re and Phoenix 2 Re. Alongside an increased underwriting risk appetite, this gives MS AAP close to $83m of capacity through its Phoenix vehicles, to support local Asian cedants.  

MS AAP has worked in conjunction with the Monetary Authority of Singapore (MAS) again to establish Phoenix 3 Re, using an insurance-linked securities (ILS) catastrophe bond grant, with support from Hong Kong-based ILS specialist ILS Advisers, part of the HSZ Group. 

Cements Singapore’s reputation as an emerging ‘ILS hub’

Will Ho, CEO, MS Amlin Asia Pacific Pte Ltd, said Phoenix 3 Re was the latest and largest of of the re/insurer’s special purpose vehicles. 

“Over the last two years, with the performance of Phoenix 1 and 2 Re, we have cemented our reputation and demonstrated our reinsurance credentials to investors, advisors, cedents and MAS,” he said. This has enabled us to secure more investment and offer more capacity for local cedants.

”We are in the midst of a tough trading and investment environment, so against this backdrop, the confidence shown by these important stakeholders in MS Amlin, is extremely gratifying.”

Tim Yip, executive director, ILS Advisers, commented: ”We are very pleased to see the continued increasing comfort level that investors are gaining with this diverse region and perils, and the value that diversifying investment opportunities can add to ILS portfolios if structured and compensated correctly.

“This is a transaction that has been issued and arranged out of Asia, supported by Asia based service providers, sponsored by an Asia based underwriting team and directly provides capacity specifically for emerging Asia.

“It shows that Singapore can be a hub to attract alternative capital as a source of valuable capacity to support the significant insurance protection gap facing the largest growing and most natural catastrophe exposed region in the world.”