MS Amlin has renewed its Phoenix Re sidecar for the fifth consecutive year, increasing the available collateralised capacity to more than $90m.
The renewal marks the continued expansion of MS Amlin’s Singapore-based sidecar, with the latest issuance representing an uplift of 12.5% from 2024. The vehicle, which provides quota share support for MS Amlin’s reinsurance portfolio in APAC, has grown significantly since launching in 2021, driven by strong performance and rising investor interest in accessing Asia’s large and diverse pool of CAT risks.
“The successful renewal of our multiple Phoenix Re investment vehicles – our fifth in the series – demonstrates the growing appetite among investors for Asian CAT risks. Since launching Phoenix Re five years ago, we have more than doubled the available capacity, enabling us to better support local cedents and help address the region’s substantial protection gap,” MS Amlin APAC CEO William Ho said.
“Our Phoenix strategy has absorbed a number of regional loss events, including floods, earthquakes and super typhoons, while supporting clients and delivering consistent returns. Last year, Phoenix Re achieved returns more than 11.5%, reflecting our disciplined approach to underwriting and deep understanding of Asian risks.”
Mr Ho also said, “With diverse economies, a substantial protection gap, and growing investor base, Asia is well positioned to emerge as a global hub for insurance-linked securities (ILS). Phoenix reflects our desire to develop a sustainable ILS market in Asia, and provide a gateway for investors to the region.”
HSZ Group, which acts as both structurer and cornerstone co-investor for the vehicle, was also involved in the latest transaction.
“We are delighted to see continued growth in interest for MS Amlin’s Asia Pacific portfolio, which offers ILS managers like us a unique opportunity to access this diverse and rapidly expanding region in a way that complements our portfolios seamlessly,” HSZ Group executive director Tim Yip said.
“Advances in data and modelling, combined with the portfolio’s strong performance over the past five years despite significant events, highlight the value of partnering with one of the region’s leading reinsurance underwriters. This collaboration has given investors like us increasing confidence in navigating this vast, diverse, and traditionally challenging market in a manner that aligns well with our ILS strategies.”