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

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The recently completed rehearsal of a side deal for real estate disaster risk reinsurance in Asia by MS Amlin was supported by a number of Asian investors, the company revealed.

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

MS Amlin, through its Singapore-based subsidiary MS Amlin Asia Pacific Pte. Ltd., launched the first purely Asian disaster risk-focused sidecar just over a year ago, with the Phoenix 1 Re Pte Special Purpose Reinsurance Vehicle (SPRV). Ltd. issuing nearly $ 42.14 million in Series 2021-1 Insurance Linked Private Securities (ILS) Notes.

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

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

With a focus on the real estate disaster risk in Asia, it is also heartening to hear that once again the Phoenix 2 Re sidecar is also backed by investors in the region.

MS Amlin Asia Pacific said Phoenix 2 Re has secured US $ 37.5 million of secured reinsurance capacity through a number of Asian-based investors for this new issue.

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

The insurer also revealed today that it has used an Insurance-Linked Securities Catastrophe Bond (ILS) grant from the Monetary Authority to make the sidecar issuance even more effective in Singapore. .

Once again, MS Amlin also worked closely with Hong Kong-based Insurance Related Securities (ILS) Specialist ILS Advisers, part of the HSZ Group, to bring the side deal to market.

Will Ho, CEO of MS Amlin Asia Pacific Pte Ltd, commented on the new issue: “We are delighted to have secured capital for Phoenix 2 Re during a difficult time for fundraising, which is a testament to our financial strength, of our 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 finding 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 grateful for the support provided by everyone involved, especially MAS and Lloyd’s Asia for their continued support in this space. “

Tim Yip, Executive Director of ILS Advisers, added: “In 2021, Phoenix 1 Re has shown the value that thoughtful and creative access to a new set of independent and diversified risks can bring to ILS investors, in particular in another year when many faced a series of significant losses from natural disasters in the most traditionally accessible parts of the world.

“We were very pleased to work again with MS Amlin Asia Pacific, helping them to organize their latest investment opportunity focused on the emerging region of Asia, and supporting their goal of providing necessary innovative products and solutions. to a region facing an insurance protection gap.

“With Phoenix 2 Re successfully issued from Singapore, it continues to demonstrate Singapore’s value as an entry point for capital, to meet the growing needs of the region. “

Encouraging to see the repeat of this ILS transaction in Singapore and as perhaps the only truly Asian-focused sidecar it offers a real diversification opportunity for investors, while supporting a recognized regional leader. of the underwriting market in MS Amlin.

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

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