MS Amlin Underwriting Limited launches Phoenix 1 Re Pte. Ltd.
Phoenix 1 Re Pte. Ltd. is the landmark first locally issued ILS to provide capacity to a local cedant, solely focused on the Pan-Asia region.
MS Amlin Underwriting Limited (MS AUL), the Lloyd’s (re)insurer, announces that MS Amlin Asia Pacific Pte. Ltd (MS AAP), its Singapore based operation, has launched a local special purpose reinsurance vehicle (SPRV); Phoenix 1 Re Pte. Ltd. in Singapore, to provide collateralised capacity to support MS Amlin Syndicate 2001’s Asia reinsurance portfolio through its Singapore based underwriting platform.
Phoenix 1 Re has secured USD42m of collateralized 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 (MAS), 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
Will Ho, CEO, MS AAP said: “We are delighted to have secured funding for Phoenix 1 Re. 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, and we are grateful for the support received from MAS, Lloyd’s Asia and ILS Advisers in establishing the vehicle.”
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.”
Tim Yip, ILS Advisers, said: “We are delighted to have been able to support MS Amlin, MAS and Lloyd’s Asia in what we truly believe to be a very important step in the continued development of the Asia ILS market. Phoenix 1 Re finally allows ILS investors to gain access to the regions diversifying perils and exposure in a way that is specifically catered to alternative capital provider’s differentiated risk appetites and requirements, and through an underwriting team that has shown consistent success in navigating a very diverse region. As a completely new and unique transaction, this further shows the growth and experience that the local region has gained over the past 2 years, in being able to efficiently facilitate these transactions.”
Lim Cheng Khai, Executive Director, MAS, 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.”
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FTI Consulting, Ed Berry / Colette La Pointe – (0)7703 330 199 / | +44 (0)7976 713 690
About MS Amlin
MS Amlin is a leading global (re)insurer, part of the global top-10 insurance group MS&AD, with three main legal entities’ operating in the Lloyd’s, Continental European and Bermudian markets. With a 300-year record and c.1,800 people in more than 20 locations worldwide, we deliver a quality service for businesses facing the most complex and demanding risks. Our role places us at the forefront of the Property & Casualty, Marine and Reinsurance markets.
We are experts in underwriting, with both technical capability and deep knowledge of the areas we insure. Our claims service aims to set the industry reference point for quality, with efficient, fair and timely claims management.
About ILS Advisers
ILS Advisers is the Insurance-Linked Securities focused business unit of HSZ Group in Hong Kong, and the first Asia based ILS specialist. HSZ Group is an independent investment management company. It is based in Hong Kong and regulated by the SFC. Highly specialized, the group focuses on listed Chinese equities and ILS investments.