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MS Amlin’s $37.5m Phoenix 2 Re sidecar deal backed by Asian investors


The recently completed repeat of a landmark Asian property catastrophe risk collateralised reinsurance sidecar arrangement by MS Amlin was backed by a number of Asian investors, the company has revealed.

ms-amlin-logoWe were first to report on the $37.5 million issuance of Series 2022-1 quota share sidecar notes through newly established Singapore SPV Phoenix 2 Re Pte. Ltd. back in December.

MS Amlin, through its Singapore based subsidiary MS Amlin Asia Pacific Pte. Ltd., launched the first pure Asian catastrophe risk focused sidecar just over a year ago, with the special purpose reinsurance vehicle (SPRV) Phoenix 1 Re Pte. Ltd. issuing almost almost $42.14 million of Series 2021-1 private insurance-linked securities (ILS) notes.

The Phoenix 2 Re Pte. Ltd. issuance is a repeat and extension of the quota share reinsurance support that MS Amlin Asia Pacific Pte. Ltd. receives from the capital markets and the company said this morning that the new sidecar “complements the landmark SPRV, Phoenix 1 Re, in terms of ceded business and structure.”

Phoenix 2 Re Pte. Ltd. will provide a quota share to MS Amlin Asia Pacific for its select reinsurance portfolio written via its underwriting platform in Singapore.

With a focus on Asian property catastrophe risks, it is encouraging to also hear that once again the Phoenix 2 Re sidecar is backed by investors from the region as well.

MS Amlin Asia Pacific said that Phoenix 2 Re secured US $37.5m of collateralised reinsurance capacity through a number of Asia-based investors for this new issuance.

MS Amlin Asia Pacific worked closely with the Monetary Authority of Singapore (MAS) to establish Phoenix 2 Re as a special purpose reinsurance vehicle there.

The insurer also revealed today that is has utilised an insurance-linked securities (ILS) catastrophe bond grant from the Monetary Authority to make issuance of the sidecar even more efficient in Singapore.

Once again, MS Amlin has also worked closely with Hong Kong-based insurance-linked securities (ILS) specialist ILS Advisers, part of the HSZ Group, to get the sidecar deal to market.

Will Ho, CEO, MS Amlin Asia Pacific Pte Ltd, commented on the new issuance, “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.”

It is encouraging to see the repeat of this ILS transaction in Singapore and as perhaps the only truly Asia focused sidecar it offers a real opportunity for diversification for investors, while supporting a recognised regional underwriting market leader in MS Amlin.

You can read about this Phoenix 2 Re sidecar transaction from MS Amlin, alongside many other reinsurance sidecar investments and related transactions in our directory of collateralized reinsurance sidecars.

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