MS Amlin’s $ 37.5 million Phoenix 2 re-sidecar deal is backed by Asian investors

MS Amlin’s recently completed iteration of a groundbreaking Asian real estate disaster risk-backed reinsurance sidecar arrangement was supported by a number of Asian investors, the company announced.

We were the first to hear about the issue of 2022-1 series sidecar notes with quota shares of $ 37.5 million by the newly formed Singapore SPV Phoenix 2 Re Pte. Ltd. back in December.

MS Amlin through its Singapore-based subsidiary MS Amlin Asia Pacific Pte. Ltd., a little more than a year ago with the special purpose reinsurance company (SPRV) Phoenix 1 Re Pte. Ltd. issues nearly $ 42.14 million in Private Insurance-Linked Securities (ILS) 2021-1 Series bonds.

The Phoenix 2 Re Pte. Ltd. is a repetition and extension of the quota reinsurance support provided by MS Amlin Asia Pacific Pte. Ltd. from the capital market and the company said this morning that the new sidecar “complements the groundbreaking SPRV, Phoenix 1 Re, in terms of ceded business and structure”.

Phoenix 2 Re Pte. Ltd. will provide MS Amlin Asia Pacific with a quota for its selected reinsurance portfolio underwritten through its Singapore underwriting platform.

With a focus on Asian real estate catastrophe risks, it is also encouraging to hear that the Phoenix 2 Re sidecar is once again being supported by investors from the region.

MS Amlin Asia Pacific announced that Phoenix 2 Re has secured $ 37.5 million in secured reinsurance capacity for this new issue from a number of Asia-based investors.

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

The insurer also announced today that it has used a catastrophe bond grant from the Insurance-Linked Securities (ILS) monetary authority to make the Singapore sidecar issuance even more efficient.

When launching the sidecar deal, MS Amlin once again worked closely with the Hong Kong-based insurance-linked securities (ILS) specialist ILS Advisers, part of the HSZ Group.

Commenting on the new offerings, Will Ho, CEO of MS Amlin Asia Pacific Pte Ltd, said: “We are delighted to have secured Phoenix 2 Re capital during a difficult time to raise funds, a testament to our financial soundness, robust risk management systems and reputation. This introduction is a natural continuation of our first SPRV and underlines our commitment to the region as well as innovative ways of maintaining relationships with capital market partners.

“We are pleased to have brought another ILS offer onto the market with the help of HSZ and are grateful for the support of everyone involved, especially MAS and Lloyd’s Asia for their continuous support in this area.”

Tim Yip, Executive Director, ILS Advisers added, “In 2021, Phoenix 1 Re demonstrated the value that thoughtful and creative access to a range of new independent and diversified threats can bring to ILS investors, especially with one more year to come , in which many with a series of significant natural catastrophe losses from traditionally developed parts of the world.

“We were delighted to be working with MS Amlin Asia Pacific again to help them arrange their latest investment opportunity focusing on the emerging Asian region and support their goal of providing products and innovative solutions that are suitable for a region with a large and ever growing region are required insurance coverage.

“The successful issue of Singapore’s Phoenix 2 Re continues to demonstrate the value of Singapore as an access point for capital to meet the region’s growing needs.”

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

You can read about this Phoenix 2 re-sidecar transaction from MS Amlin, among many other reinsurance sidecar investments and related transactions in our directory of. read secured reinsurance sidecars.

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