MS Amlin completes Phoenix Re sidecar renewal, lifts capacity to $90m for 2025

Insurer and reinsurer MS Amlin has renewed its Asian-focused insurance-linked securities (ILS) sidecar, Phoenix Re, for the fifth consecutive year, increasing the available collateralised capacity to over $90 million, the company has announced.

The Phoenix Re sidecar vehicle provides the re/insurer with quota share support for its reinsurance book in Asia Pacific, and has grown considerably since its launch in 2021, when MS Amlin secured $42 million of collateralised capacity.

In 2022, MS Amlin returned with a $37.5 million issuance via Phoenix 2 Re, and for 2023 launched the $45 million Phoenix 3 Re sidecar.

Last year, MS Amlin completed the first ever renewal of an ILS arrangement in Singapore through Phoenix 2 Re, giving the firm over $80 million in capacity to support local Asian cedents across its series of Phoenix Re sidecars.

The latest edition is a renewal of Phoenix Re 3, confirms MS Amlin, and the issuance represents an uplift of 12.5% from 2024.

MS Amlin’s established Asian-focused ILS sidecar provides investors with exposure to Asian catastrophe risk without correlation to peak zones, says the firm. The vehicle provides diversification via more than 150 layers annually across APAC and MENA.

William Ho, CEO of MS Amlin Asia Pacific, commented: “The successful renewal of our multiple Phoenix Re investment vehicles – our fifth in the series – demonstrates the growing appetite among investors for Asian catastrophe 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.

“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.

“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.”

Late last year, Artemis, our ILS focused sister publication, spoke with Ho about the company’s Phoenix Re sidecar series of deals, who underlined an ambition to grow the platform.

HSZ Group acts as structurer and cornerstone co-investor for the Phoenix Re sidecar, and was again involved in the fifth renewal.

“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,” said Tim Yip, Executive Director of HSZ Group.

“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,” he added.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.