The new vehicle will provide a quota share to MS AAP for its select reinsurance portfolio written via its underwriting platform in Singapore. In addition, it complements another recently launched SPRV, Phoenix 1 Re Pte Ltd, regarding ceded business and structure.
MS AAP's SPRV Phoenix 1 Re has US$42 million of collateralized capacity, providing alternative capital investors access to MS Amlin's strong, diverse regional portfolio that spans more than 10+ territories, excluding key peak perils, such as Japan and Australia. Around half of the capacity came from Asia-based investors or fund managers.
Meanwhile, Phoenix 2 Re has secured US$37.5 million of collateralised capacity through several Asia-based investors.
MS AAP worked in conjunction with the Monetary Authority of Singapore (MAS) to establish Phoenix 2 Re using an insurance-linked securities (ILS) catastrophe bond grant, alongside Hong Kong-based ILS specialist ILS Advisers, part of the HSZ Group.
Tim Yip, executive director of ILS Advisers, said the previous SPRV proved that thoughtful and creative access to new independent and diversified perils is valuable to ILS investors, especially in another year when many face significant natural catastrophe losses from the more traditionally accessed parts of the world.
“We were very pleased to work with MS Amlin Asia Pacific again, helping them arrange their latest investment opportunity focused on the emerging Asia region, and to support their goal of providing products and innovative solutions required for a region facing a large and ever-growing insurance protection gap,” said Yip. “With Phoenix 2 Re successfully issued out of Singapore, this continues to demonstrate Singapore's value as an entry point for capital to support the growing needs of the region.”
MS AAP CEO Will Ho said the company is pleased to have secured capital for the second SPRV despite a challenging time for fundraising.
“This launch is a natural continuation of our first SPRV and highlights our commitment to the region, as well as source innovative ways to cultivate relationships with capital market partners,” Ho commented. “We are delighted to have launched another ILS offering with the help of HSZ and are thankful for the support provided by everyone involved, in particular to MAS and Lloyd's Asia for their continued support to us in this space.”
