MS Amlin Underwriting Limited (MS AUL), a Lloyd’s (re)insurer, has announced that MS Amlin Asia Pacific (MS AAP), its Singapore based operation, has launched a local special purpose reinsurance vehicle (SPRV) called Phoenix 1 Re. This is a landmark first locally issued ILS to provide capacity to a local cedant, solely focused on the Pan-Asia region.
Phoenix 1 Re provides collateralised capacity to support MS Amlin Syndicate 2001’s Asia reinsurance portfolio through its Singapore based underwriting platform. Phoenix 1 Re has secured $42m of collateralised capacity, with alternative capital providers gaining a unique opportunity to access MS AAP’s strong historical performing and diverse regional portfolio, which spans over 10+ territories and specifically excluding key peak perils, including Japan and Australasia. Approximately half of the capacity was supported by Asia-based investors or fund managers.
The establishment of Phoenix 1 Re, allows MSAAP to provide even better products and service to their clients and partners locally within this developing and maturing region, and to introduce new alternative capital sources to help reduce the region’s protection gap.
MS AAP worked in conjunction with the Monetary Authority of Singapore, Lloyd’s Asia and Hong Kong based ILS specialist ILS Advisers to establish Phoenix 1 Re, and was supported by a wide range of local service providers.
Mr Will Ho, CEO, MS AAP, said, “Through the creation of a remote risk facility, which caters to regional business, MS AAP will now be able to leverage larger capacity that we can deploy to our core clients on their reinsurance programmes as demand and growth increases in Asia. Phoenix 1 Re is an important long-term strategic initiative for MS AAP as we continue to seek ways to build capacity and relationships with capital market partners.”
Mr Pavlos Spyropoulos, CEO, Lloyd’s Asia, said, “The launch of MS AAP’s ILS vehicle is an important milestone in the Lloyd’s Asia platform’s growth story and evolution, setting a new paradigm for how capital can leverage the underwriting expertise we have developed in Singapore to access Asia Pacific business through Lloyd’s. The faith Phoenix 1 Re’s investors have placed in MS AAP is an endorsement of their strong underwriting capability, and of the value proposition of our platform in Singapore that enables local access to Lloyd’s unique licence network, financial security, expertise, and brand.”
Mr Lim Cheng Khai, MAS executive director, said, “MAS welcomes the launch of Phoenix 1 Re, the first pan-Asian catastrophe bond that covers multiple natural catastrophe perils across more than 10 countries. Phoenix 1 Re has a unique structure that accommodates different policy renewal and inception dates within its underlying portfolio of Asian risks, which makes it attractive to a wider pool of insurance-linked securitisation (ILS) investors. Phoenix 1 Re is also the 10th catastrophe bond issued in Singapore, and bears testament to MAS’ continuing effort to grow the Asian ILS market and facilitate the use of innovative ILS structures to narrow the protection gap in Asia.”